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KyberSwap Elastic’s TVL Drops Over 50% After Project Warns of Vulnerability

1 min
Updated by Geraint Price
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In Brief

  • Kyber Network discovered a vulnerability in KyberSwap Elastic.
  • The team asked liquidity providers to withdraw funds.
  • KyberSwap Elastic lost over 50% in Total Value Locked.
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Decentralized finance (DeFi) protocol Kyber Network has asked liquidity providers of KyberSwap Elastic to withdraw funds after it discovered a potential vulnerability.

The DeFi protocol tweeted, “We have identified a potential vulnerability, and as a precaution we strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible. Investigations are ongoing and no user funds are lost.”

Steep Drop in KyberSwap Elastic TVL

Kyber Network also assured that KyberSwap Classic, the sister product of KyberSwap Elastic, is unaffected by the vulnerability.

After the announcement, users withdrew over $56 million from KyberSwap Elastic. According to data from DefiLlama, the Total Value Locked (TVL) dropped from around $108 million to $52 million. That’s a drop of over 50% within a couple of hours of the announcement.

KyberSwap Elastic's TVL drops by over 50%
Source: DefiLlama

Although, as of writing, there is not much impact on the price of the Kyber Network Crystal (KNC) token. According to data from TradingView, the price of KNC is down by roughly 0.6%, post the tweet warning about vulnerabilities.

The project may have dodged the bullet this time, but in September 2022, it lost $265,000 to a front-end exploit. Last month, a Kyber Swap user received only 0.05 USDT while swapping 2 million USDC due to a routing error.

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Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...
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