DeFi protocol Kyber Network announced on April 17 that there was a potential vulnerability in the exchange’s contracts. It immediately asked all liquidity providers to withdraw their funds as soon as possible.
The developer of the Kyberswap Elastic decentralized crypto exchange, Kyber Network, announced on April 17 that there was a potential vulnerability in the exchange’s contracts. All liquidity providers have been instructed to withdraw their cash as soon as possible.
According to the developer, no money was lost. However, the developer recommended that liquidity providers (LPs) withdraw their funds as a precaution.
Only Kyberswap Elastic money is at risk. According to the researchers, the vulnerability is not in Kyberswap Classic smart contracts.
The team announced in a separate post that agricultural incentives were temporarily suspended. This should continue until a new smart contract can be installed. All prizes earned before April 18, 23:59 (GMT+7) have already been awarded and are not affected by this shutdown.
The developer also said that he will soon provide an update to the community on when funds can be safely deposited back into the protocol.
Research ongoing, KNC token falls and recovers
KyberSwap Elastic, according to its own documentation, is a decentralized exchange (DEX) that allows LPs to provide “concentrated liquidity”.
Instead of requiring them to offer liquidity at any price, they can choose a price cap and floor for the tokens they deposit into the pool.
LPs no longer earn compensation if the price drops below the floor or rises above the ceiling. They do receive an additional fee if the price remains within the range they have set. In contrast, the previous version of DEX, KyberSwap Classic, did not support concentrated liquidity.
In September 2022, the Kyberswap user interface was hacked and an attacker made off with $265,000 worth of cryptocurrency.
The protocol acknowledged that the study was ongoing.
The protocol’s native token, KNC, fell 6% following the news. However, later the value recovered to the same point as before.
This post Kyber Network asks for instant withdrawal of funds, here’s why
was published first on https://ambcrypto.com/kyber-network-requests-immediate-withdrawal-of-funds-heres-why/
