KyberSwap to Compensate Users With Treasury Grants Following $48.8 Million Security Breach
Summary:
KyberSwap, hit by a major security breach resulting in a $48.8 million loss, plans to compensate affected users with grants from its treasury. The vulnerability, traced back to the platform's liquidity pools, led to a massive depletion of funds. Though the lost amount was initially valued at $47 million, it was later confirmed at $48.8 million. Amid this, KyberSwap managed to recover $4.7 million stolen by third-party bots. The incident has instigated a thorough review of the company's security protocols.
Following a major security breach on November 22nd that resulted in a $48.8 million deficit, KyberSwap plans to financially support affected users. To do this, KyberSwap will set up a grant sourced from their treasury, aiming to compensate users who were negatively impacted by this exploit. The amount of the grant will match the USD value of the assets lost in the breach, lightening the financial strain for the victims. This action emphasizes KyberSwap's commitment to the user community and the security of their platform. Although the exact terms and requirements for the grant are yet to be determined, KyberSwap pledged to release further details within the next fortnight.
Investigations into the security breach revealed that the vulnerability stemmed from the tick interval limits within KyberSwap's dense liquidity pools. This gap enabled the perpetrator to artificially adjust the liquidity, causing a massive drain on funds. Initially estimated at $47 million, the total sum of the loss was later confirmed to be $48.8 million. To retrieve the stolen assets, KyberSwap suggested a 10% reward to the offender, only to face unusual demands in lieu of agreement.
Surprisingly, KyberSwap managed to retrieve $4.7 million of the loot, which was separately taken by third-party MEV bots during the attack. This partial recovery, along with the proposed grants from the treasury, showcases the platform's proactive attitude in dealing with security lapses. Besides, this incident has prompted a comprehensive examination of KyberSwap's safety protocols, with the team poised to fortify its defences against future attacks.
This initiative to provide compensation grants from the treasury is a significant move in the decentralized finance world towards maintaining user confidence and support in the wake of security breaches.
Published At
12/2/2023 10:19:00 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.