A DeFi giant that once held $3 billion is now proposing to wind itself down

DeFi platform Balancer is proposing an orderly shutdown after a cost-cutting overhaul failed to revive revenue following last year’s $128 million exploit.The decentralized exchange’s Sept. 14 governance proposal would end new business development, begin winding down operations, and eventually distribute the remaining treasury to BAL holders. Token holders are scheduled to vote on the plan from Sept. 25 to Sept. 29.The proposal comes about six months after Balancer Labs, the corporate entity behind the protocol, closed following a Nov. 3, 2025 exploit that drained roughly $128 million from Balancer v2 pools across several blockchains.Data from DeFiLlama showed that Balancer once ranked among DeFi’s largest trading venues, with more than $3 billion in total value locked at its 2021 peak. That figure has fallen to about $58 million, reflecting both a broader contraction in activity and the protocol’s struggle to rebuild after the attack.Marcus Hardt, former Balancer Labs chief executive, said the DAO had already tried a narrower survival plan. Holders approved proposals in April that ended token emissions, redirected protocol fees to the treasury and cut operating costs while a smalle...