Berachain Hard Fork Halts Network to Patch Balancer V2
Berachain validators halted the mainnet on November 3 and launched an emergency hard fork to address critical Balancer V2 security exploits in its DeFi ecosystem. The update disables cross-chain USDe withdrawals, pauses USDe deposits and HONEY minting/redemptions, and coordinates with centralized exchanges to blacklist malicious addresses. The protocol team is also restructuring slots for non-native assets and plans to distribute updated binaries once the patch is complete.
Traders should monitor the resumption of network operations, the deployment of patched smart contracts, and potential shifts in USDe and HONEY liquidity on BEX pools. This swift Berachain hard fork underscores the protocol’s commitment to security and stability amid growing DeFi exploit risks.
Neutral
In the short term, the network halt and emergency hard fork may trigger volatility as deposits and withdrawals resume. However, the rapid patch of Balancer V2 exploits and coordinated measures to blacklist malicious addresses restore protocol integrity. Over the long term, this decisive action should bolster trader confidence in Berachain’s governance and security, supporting stability in USDe and HONEY liquidity.