KyberSwap launches treasury grant program for exploit that affected users

  crypto.news 6 h

Following the Nov. 22 exploit, KyberSwap has announced a treasury grant program for affected users, according to a Dec. 20 release on their blog.

In relation to the KyberSwap Elastic incident that transpired from 22 November 2023, 10:54:09 PM UTC, resulting in the exploitative swaps by the exploiter that drained approximately $48.8 million of users’ funds from KyberSwap Elastic liquidity pools, we reiterate our unwavering…

— Kyber Network (@KyberNetwork) December 1, 2023

According to a Dec. 1 post on X, the KyberSwap elastic incident resulted in exploitative swaps that drained approximately $48.8 million of users’ funds from liquidity pools. At the time, the network behind the flagship product, KyberSwap, reaffirmed its commitment to collaborate with law enforcement and cybersecurity to identify the exploiter and recover users’ funds.

As part of their plan, KyberSwap shared their intention to provide grants to affected users, matching the USD value of the funds lost during the exploit and yet to be recovered from their respective liquidity pools.

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The Dec. 20 update stated that KyberSwap users who contributed assets to KyberSwap Elastic Pools have encountered the impact of the KyberSwap Elastic Exploit across five asset categories. These affected assets were either removed or locked within the affected pools, preventing withdrawal by affected users.

Within the program, eligible affected users are presented with various options related to each address for Treasury Grants. The first option provides the USD stablecoins equivalent to 60% of the reference value of affected assets, vested over 3 months. The second offers the USD stablecoins equivalent to 100% of the reference value, vested over 12 months. Alternatively, affected users will have the choice to opt-out.

Starting on Jan. 11, the Treasury Grant UI will allow users to choose an option. The decision deadline will conclude on Jan. 23, with distribution beginning on Feb. 1.

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