Kyber Network Advises Liquidity Providers to Withdraw Funds Amid Vulnerability, Token Drops 2%

Kyber's Elastic product's total value locked has plunged to $61 million from $108 million a day earlier.

AccessTimeIconApr 17, 2023 at 12:23 p.m. UTC
Updated May 9, 2023 at 4:12 a.m. UTC

Decentralized-finance protocol Kyber Network has advised liquidity providers on its Elastic product to withdraw funds after it found a potential vulnerability.

The protocol confirmed the potential flaw in a tweet while noting that no funds had been lost and that the KyberSwap Classic product is unaffected. The protocol's native token, KNC, dropped by 2% following the tweet.

The Elastic product had $108 million in total value locked on Sunday, but that figure has dropped to $61 million according to DefiLlama.

Vulnerabilities and exploits have been rife across the DeFi ecosystem this year, with Euler Finance losing almost $200 million in an attack last month.

The protocol confirmed that investigations are ongoing.

Edited by Stephen Alpher.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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