Decentralized finance (DeFi) protocol Kyber Network has asked the liquidity provider (LP) of the KyberSwap Elastic decentralized exchange to withdraw funds due to possible vulnerabilities in the exchange’s contract .
Kyber Network Tweet On April 17th, no funds were compromised, but for inattention. A liquidity provider recommends withdrawing funds.
The tweet read:
“Attention to KyberSwap Elastic Liquidity Providers: We have identified a potential vulnerability. As a precautionary measure, we strongly encourage all liquidity providers to withdraw their funds on Elastic as soon as possible.”
The risk is limited only to the KyberSwap Elastic fund, but the KyberSwap Classic smart contract is not affected by the vulnerability, the team explained.
More than 80% drop in TVL, 4% drop in KNC
Defiramaz data announced a sharp decline in Total Value Locked (TVL) for Kyber Network’s Elastic offering, plummeting to $17.71 million from $108 million on April 16.
Additionally, Coinmarketcap data It shows a 4% drop in value of Kyber Network’s native token, KNC, after the announcement.
The Kyber Network Team announced Another message is withholding farming rewards until new smart contracts are implemented. However, all rewards earned before April 18th 11:00 PM (GMT+7) have already been distributed and will not be affected by the suspension.
Security risks in the DeFi space
Kyber Network has been hit by security issues before. In September 2022, we were hit by a front-end exploit that resulted in a loss of $265,000. Moreover, just last month, user of Kyber Swap received only 0.05 USDT after exchanging 2 million USDC due to a routing error.
As the DeFi space continues to grow, so too does the number of vulnerabilities and exploits. This latest announcement from Kyber Network comes in light of recent high-profile hacks such as the $196 million Euler Finance hack, the $23 million Bitrue exchange hack, and the Yearn Finance hack. , is a reminder of the potential security risks facing investors.
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