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Just In: KyberSwap Announces Treasury Grants for Hack Victims

KyberSwap has revealed plans to support victims of a $48.8M exploit with a grant program, reaffirming their commitment to DeFi security.

Published by

Kelvin Munene Murithi

Published 01 Dec, 2023 | 09:08:47 PM UTC

Just 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.

Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Published by

Kelvin Munene Murithi

Published 01 Dec, 2023 | 09:08:47 PM

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