- April 20, 2023
- Posted by: [email protected]
- Category:
KyberSwap Elastic, the cutting-edge decentralized exchange (DEX) that empowers liquidity providers to concentrate liquidity within specific price ranges, raised an important red flag on April 17 via Twitter. The platform revealed a potential vulnerability lurking in their contracts, and in response, urgently advised all liquidity providers to swiftly withdraw their funds as a means of safeguarding their investments.
According to KyberSwap, “investigations are ongoing and no user funds are lost’’. The platform has taken a proactive risk management step to safeguard user funds by encouraging liquidity providers (LPs) to withdraw their funds as a precautionary measure. Notably, only KyberSwap Elastic funds are at risk, and the team has assured users that KyberSwap Classic smart contracts remain secure and devoid of the identified vulnerability.
As part of their risk management strategy, the KyberSwap team has also temporarily suspended farming rewards until a new smart contract can be deployed. However, they have reassured users that all rewards earned prior to April 18, 2023, at 11pm (GMT+7) have already been distributed and remain safe. Keeping the community informed, KyberSwap pledges to provide timely updates on when funds can be safely deposited back into the protocol.
This exploit comes just a few months after the previous hack that resulted in a loss of $265,000 worth of crypto due to a compromised user interface. However, KyberSwap’s unwavering dedication to strengthening their security measures and proactively addressing any potential risks is commendable. KyberSwap’s actions speak volumes about their proactive approach and unwavering commitment to their community, showcasing their dedication to maintaining a trustworthy, reliable and secure ecosystem for all users.
KyberSwap has further reassured its community that it is diligently working on resolving the potential vulnerability in its contracts and is committed to providing updates soon regarding the timeline for safely depositing funds back into the protocol. The community members are encouraged to stay updated with KyberSwap’s official communications and follow their guidance to ensure the safety of their funds.
Over the past few months, exploits have become increasingly popular among DeFi protocols. Because of this, developers must persist in making sure that sufficient security measures are implemented and maintained.
