NewsletterJust In: KyberSwap Announces Treasury Grants for Hack Victims
KyberSwap has revealed plans to offer financial support to affected users. The decentralized finance protocol suffered a substantial exploit on November 22, resulting in a loss of $48.8 million. In response, KyberSwap is setting up a grant program from its treasury to compensate those impacted by the incident.
Details of the Grant Program
The grants, intended to alleviate the financial strain on victims, will match the USD value of the assets lost during the hack. This initiative underscores KyberSwap’s commitment to its user base and the security of its platform. While the grant’s exact mechanism and criteria are still finalized, KyberSwap has pledged to release more information in two weeks.
Investigations into the exploit have revealed that the vulnerability lay in the tick interval boundaries of KyberSwap’s concentrated liquidity pools. This flaw allowed an attacker to artificially inflate the liquidity, leading to a significant drain of funds.
Initially, the loss was estimated at $47 million, but further analysis confirmed the higher figure of $48.8 million. To recover the stolen assets, KyberSwap offered a 10% bounty to the perpetrator, a proposition that was met with unusual demands rather than acceptance.
KyberSwap’s Recovery Efforts
Interestingly, KyberSwap has successfully recovered $4.7 million of the stolen funds, which were separately taken by third-party MEV bots during the hack. This partial recovery and the proposed treasury grants reflect the platform’s proactive approach to addressing security breaches. Additionally, the incident has prompted a thorough review of KyberSwap’s security protocols, with the team committed to enhancing safeguards to prevent future exploits.
By offering treasury grants, this response to this crisis marks a notable effort in the decentralized finance community to maintain trust and support among its users following security breaches.
Read Also: Ripple CLO Spots ‘Troubling Pattern’ in SEC-Led Crypto Lawsuits
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