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Kyber Network's Elastic Platform Vulnerability: Why Your Funds Could Be At Risk

Published 17/04/2023, 20:59
© Reuters. Kyber Network's Elastic Platform Vulnerability: Why Your Funds Could Be At Risk
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Benzinga - Kyber Network, a popular decentralized finance (DeFi) protocol, warned users of a possible security vulnerability in its Elastic platform, urging them to withdraw their funds as a precautionary measure.

The team assured users that investigations are ongoing and no user funds have been lost.

The Kyber team stated, "We have identified a potential vulnerability and strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible. Investigations are ongoing, and no user funds are lost."

Elastic is a decentralized exchange platform that enables users to swap tokens and liquidity providers to deposit tokens and earn a yield on their deposits.

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As a precaution, the Kyber team has paused users from adding liquidity to the platform.

They also promised to provide more details on the situation when KyberSwap Elastic is re-enabled.

Another exchange product, KyberSwap Classic, remains unaffected.

Following the warning, the total value locked in the Elastic platform fell from $105 million to approximately $52 million as users withdrew their funds.

It's worth noting that KyberSwap Elastic utilizes the concentrated liquidity concept, similar to Uniswap v3, which allows liquidity providers to specify price ranges for their liquidity positions.

Despite this, the vulnerability discovered by Kyber Network has raised concerns, and the team is taking necessary measures to protect users' funds.

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Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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