Decentralized finance protocol Kyber Network has warned its users of a critical flaw. Following this announcement, many users withdrew their funds.
A vulnerability within Elastic
Kyber Network advises liquidity providers on its Elastic platform to withdraw their funds. This announcement comes after the discovery of a potential vulnerability within the protocol.
In a tweet, the project teams confirmed this flaw and clarified that no funds were lost. Kyber Protocol also specifies that the swap tool, KyberSwap Classic, is not touched by this problem. Following this tweet, the native token of the protocol, the KNC, fell more than 3%. This is the utility and governance token of the protocol.
Attention KyberSwap Elastic Liquidity Providers:
We have identified a potential vulnerability, and as a precaution we strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible.
Investigations are ongoing and no user funds are lost.
— Kyber Network (@KyberNetwork) April 17, 2023
These are close to 108 million dollars which were locked into Elastic’s contracts on Sunday. This figure is only 30 millions at the time of writing these lines according to the specialized site DeFiLlama. On the side of KyberSwap Classic, funds are stable with nearly $22 million in TVL.
Kyber Network is a multi-chain hub allowing funds to work within different liquidity pools. KyberSwap permet to exchange many cryptos between different blockchain networks, all for very competitive fees.
This is a DEX aggregator like Sushiswap, Uniswap, Curve and others which allows investors to find the best path to swap between two cryptos. KyberSwap is present on 13 different blockchains as EthereumAvalanche, Polygon or even Fantom.
Cryptocurrency investing is offered by eToro (Europe) Ltd as a PSAN, registered with the AMF. Cryptocurrencies are very volatile. No consumer protection.
Hacks are multiplying in DeFi!
In a context of proliferation of hacks within DeFi, the Kyber Protocol team has preferred to take the lead. As a reminder, the protocol had already been the victim of a hack last year for nearly $265,000.
Last month, it was Euler Finance who lost nearly $200 million following an attack. However, of this sum the hacker had returned next to 138 million dollars to the protocol. This attack targeting the protocol’s smart contracts exploited 11 Euler Finance protocols.
Poly Network is also one of the biggest hacks of the year 2022. This time around 611 million dollars had been stolen. This time again, the hacker had returned all funds to the project teams. As a thank you, the company had offered him a job as an IT consultant and a generous bonus of $500,000.
A rather common practice of returning funds since the attacker of the AllBridge protocol has also returned almost all stolen funds.
Source : CoinDesk
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