Polygon

Partial

Security

Avalanche

<div class="fintechs">
 <div class="wp-block-image">
  <figure class="aligncenter size-full"><img decoding="async" width="640" height="427" src="https://cdn.thebittimes.com/images/2023/12/03/db2785cb3e9d2497a1e28b1073d06e86.webp" alt="" class="wp-image-43016" srcset="https://cdn.thebittimes.com/images/2023/12/03/fbc91ddb352af12ffb9ae3294ac5755e.webp 750w, https://cdn.thebittimes.com/images/2023/12/03/fbc91ddb352af12ffb9ae3294ac5755e.webp 300w" sizes="(max-width: 640px) 100vw, 640px" data-recalc-dims="1">
  </figure>
 </div>
 <h3 class="wp-block-heading has-text-align-center" id="em-offering-financial-relief-and-enhancing-security-em"><em>Offering Financial Relief and Enhancing Security</em></h3>
 <p class=""><strong>In a resolute response to a recent security breach that cost the decentralised finance (DeFi) protocol $48.8 million, KyberSwap has unveiled plans to extend a helping hand to the victims. The incident, which took place on November 22nd, has shaken the DeFi community, but <em>KyberSwap</em> is determined to rebuild trust and ensure the security of its platform.</strong></p>
 <figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">In relation to the KyberSwap Elastic incident that transpired from 22 November 2023, 10:54:09 PM UTC, resulting in the exploitative swaps by the exploiter that drained approximately $48.8 million of users’ funds from KyberSwap Elastic liquidity pools, we reiterate our unwavering…</p>— Kyber Network (@KyberNetwork) December 1, 2023
   </blockquote>
  </div>
 </figure>
 <h2 class="wp-block-heading" id="strong-treasury-grants-for-affected-users-strong"><strong>Treasury Grants for Affected Users</strong></h2>
 <p class="">The heart of KyberSwap’s response lies in its commitment to its users. The platform is establishing a grant initiative from its treasury to compensate individuals who suffered exploitation losses. This grant will be equivalent to the USD value of the assets lost during the security breach. While the specific details and criteria for the grant are being finalised, KyberSwap has pledged to share further information within two weeks.</p>
 <h2 class="wp-block-heading" id="strong-understanding-the-security-breach-strong"><strong>Understanding the Security Breach</strong></h2>
 <p class="">A thorough investigation into the security breach has revealed that the vulnerability stemmed from tick interval boundaries within KyberSwap’s concentrated liquidity pools. This vulnerability allowed an attacker to artificially manipulate liquidity, resulting in a significant depletion of funds. Initially estimated at $47 million, the loss was later confirmed to be $48.8 million.</p>
 <p class="">KyberSwap made an unconventional move by proposing a 10% reward to the wrongdoer in an attempt to recover the stolen assets. However, this proposal was rejected rather than accepted, highlighting the complexities of dealing with cybercriminals in the DeFi space.</p>
 <h2 class="wp-block-heading" id="strong-partial-recovery-and-proactive-measures-strong"><strong>Partial Recovery and Proactive Measures</strong></h2>
 <figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">The KyberSwap team has been in contact with the owners of the frontrun bots that extracted about $5.7M* worth of funds from KyberSwap pools on Polygon and Avalanche during the exploit.<br>We have negotiated with the owners of the frontrun bots to return 90% of the users’ funds taken…</p>— Kyber Network (@KyberNetwork) November 26, 2023
   </blockquote>
  </div>
 </figure>
 <p class="">Despite the challenges, KyberSwap has recovered $4.7 million of the stolen funds. These funds were retrieved from third-party Miner Extractable Value (MEV) bots that profited nearly $5.7 million following the exploit. This partial recovery showcases KyberSwap’s proactive approach to addressing security breaches and its commitment to safeguarding user assets.</p>
 <p class="">The incident has prompted a comprehensive review of KyberSwap’s security protocols. The team is dedicated to enhancing safeguards to prevent future exploits, ensuring the utmost security for its users.</p>
 <h2 class="wp-block-heading" id="strong-a-unified-front-in-defi-strong"><strong>A Unified Front in DeFi</strong></h2>
 <p class="">KyberSwap’s decision to offer treasury grants is a significant step in the DeFi community. It demonstrates a commitment to maintaining trust and support among users, even in the face of security breaches. By standing with the victims and pursuing legal action against the exploiter, KyberSwap aims to communicate that security and integrity are paramount in decentralised finance.</p>
 <p class="">In conclusion, KyberSwap’s response to the recent exploit is a testament to its dedication to the DeFi community. Through treasury grants, the platform seeks to ease the financial burden on affected users while reinforcing its commitment to security. As DeFi continues to evolve, KyberSwap’s actions set a positive precedent for the industry, emphasising the importance of trust and user protection.</p> 
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/kyberswap-s-response-to-exploit-treasury-grants-for-victims-tbt72402.html">https://thebittimes.com/kyberswap-s-response-to-exploit-treasury-grants-for-victims-tbt72402.html</a></p>

KyberSwap’s Response to Exploit: Treasury Grants for Victims

Table of Contents

TheBitTimes

Other articles published on Dec 2, 2023

NFT market review, November 2023

Grayscale Explains How Bitcoin Price Could Be Bolstered By Supply Dynamics In 2024

Decred Journal – October 2023

Trust Wallet Conquers Asia, Sets Sights on Emerging Markets as Binance Drowns

Chainlink Price Outlook: Can LINK Overcome Challenges By 2023?

Crypto Daily Roundup,02 Dec: Jerome Powell: The Santa Claus for Crypto

Join our free newsletter for daily crypto updates!