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DeFi

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

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

Decentralized finance (DeFi) protocol Kyber Network has advised liquidity providers on its Elastic product to withdraw funds after finding a potential vulnerability.

The protocol confirmed the potential vulnerability 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 (TVL) on Sunday, but that figure has now slumped 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.

Kyber Network was hit with a $265,000 exploit in 2022.

The protocol confirmed that investigations are ongoing.

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