KyberSwap Elastic Faces ‘Potential Vulnerability’
The protocol tweeted a warning out to its users, noting that it had temporarily disabled all liquidity pools to address the issue
CROCOTHERY/Shutterstock modified by Blockworks
DeFi protocol Kyber Network announced a “potential vulnerability” on its automated market maker (AMM) platform KyberSwap Elastic on Monday.
While there is relatively little information on the current issue, difficulties may have arisen after a user named Zal encountered an error while withdrawing single-sided liquidity from the platform. After the user posted screenshots of their issue to the Kyber discord, team member Michael_E responded saying, “Your Lp must have gone out [of] range and sold to one of the [tokens] you used in adding liquidity.”
Shortly thereafter, the team took to Twitter to announce that it had temporarily taken all of Elastic’s liquidity pools offline in order to address the vulnerability. The company tweeted that it is investigating, and reassured participants that “no user funds are lost.”
Kyber also strongly advised liquidity providers to “withdraw your funds on Elastic as soon as possible.”
KyberSwap Classic, the company’s original liquidity protocol, was not affected by the potential exploit.
Blockworks previously reported that KyberSwap suffered a $265,000 hack in September 2022 that Binance helped to unravel. At the time, KyberSwap offered a 15% bounty to the hacker, amounting to around $40,000, if they returned the money.
Kyber Network did not respond to questions by time of publication.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
- Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
