Notional will shut down the V3 protocol to address bad debt risks caused by the Balancer attack.

Odaily Planet Daily reports that, according to an official announcement, due to a vulnerability in Balancer, Notional has confirmed approximately 721.6 ETH in bad debt across its V3 protocol on the Ethereum mainnet and Arbitrum (641.4 ETH on the mainnet and 80.2 ETH on Arbitrum). Users of the affected Balancer/Aura leveraged vaults will face a 100% loss; the value of ETH lending and liquidity provider accounts on both the mainnet and Arbitrum will be significantly reduced, including some users who borrowed against ETH collateral. Other accounts are unaffected. Notional stated that due to the large scale of bad debt, the V3 protocol will gradually shut down on both the Ethereum mainnet and Arbitrum, with detailed asset withdrawal plans to be announced later. For cross-currency lending users, the platform will automatically migrate their positions to Aave to prevent liquidation risks during the shutdown. The team has promised to release a detailed report soon, explaining the reduction ratios for ETH lenders and liquidity providers, remediation plans, and calculation methods, while emphasizing their full efforts to recover assets and minimize user losses.