Kyber Network Finds Vulnerability in Its Contracts and Urges LPs to Remove Funds

Kyber Network Finds Vulnerability in Its Contracts and Urges LPs to Remove Funds

Time Stamp: April 18, 2023 8:53 AM
Source Node: 2592237

At the time of writing, it is unclear whether Kyber Network experienced any losses due to this vulnerability.

Kyber Network, the creator of the decentralized crypto exchange (DEX) KyberSwap Elastic, discovered a potential flaw in the exchange's contracts on April 17th.

As a safety measure, the developer has urged all liquidity providers (LPs) to remove their funds as quickly as possible. It is important to note that, so far, no information about the lost funds has been provided.

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This issue is limited to KyberSwap Elastic funds, while KyberSwap Classic smart contracts remain unaffected. The developer has assured the community that the Classic contracts do not share this vulnerability.

In a separate announcement, the Kyber Network team revealed that farming rewards have been temporarily halted until they can deploy a new, secure smart contract. However, any rewards earned before 11 pm (GMT+7) on April 18th, 2023, have already been distributed and will not be impacted by this temporary suspension.

Regarding this message, on April 18th, Kyber Network issued a reminder, noting that "any liquidity not removed by this time will be under Emergency Withdrawal."

Kyber Network plans to update the community with information regarding when it will be safe to deposit funds back into the protocol. They are working diligently to address this issue and ensure the security of their users' assets.

KyberSwap Elastic, as described in its official documentation, is a decentralized exchange (DEX) that allows liquidity providers to offer "concentrated liquidity." Instead of mandating them to provide liquidity at any price point, this feature enables LPs to determine a price ceiling and floor for the tokens they contribute to the pool.

Kyber Network is taking proactive steps to address the potential vulnerability in KyberSwap Elastic contracts and minimize any potential risks to liquidity providers.

Kyber Network is not the only company that has swiftly reacted to possible vulnerabilities. At the end of March, Bitcoin ATM manufacturer General Bytes suspended its cloud services after it detected a security vulnerability.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree

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