Add Balancer to the ever-growing list of exploits that have occurred in Ethereum and other account-based chains...it's a fundamental misdesign at the contract, key and tooling layers, and it's surprising to see so many institutions choosing to build on them!
- DAO reentrancy hack (2016)
- Parity freeze (2017)
- Wintermute (2022)
- Curve/Vyper bug (2023)
- ETHcode/supply chain attack (2025)
- Bybit (2025)
The list goes on...In contrast, UTXO-based chains like Bitcoin and its L2s like
@Liquid_BTC generally prioritize security over convenience and expressivity.
Eg, Core features like multisig, confidentiality and issuance are natively built into Liquid’s protocol, using low-level opcodes and lightweight cryptography...whereas Ethereum and other ABMs rely on overly expressive smart contracts and third-party tooling for the same feature set.
Today, there’s also Simplicity, a new smart contracting language from
@Blockstream for Bitcoin/Liquid, where you can formally specify and verify contracts. This allows you to achieve expressivity without the fallout from unbounded loops, global state, reentrancy, etc.
Eventually, the market will catch up to the knowledge base available and what Bitcoiners have been emphasizing for more than a decade now. Until then, new hacks and exploits will continue, highlighting this fundamental difference in design.