KyberSwap plans to help users impacted by a major breach on Nov. 22, resulting in a $48.8 million deficit for the decentralized finance system. However, To mend this, KyberSwap is setting up a fund from its reserves to provide recompense to those negatively impacted by the occurrence.
The aid is planned to lighten the money stress on impacted people. It will match the USD value of the assets lost in the security break. This act underlines KyberSwap’s loyalty to its user family and platform safety.
However, Even though the exact details and standards for the aid are being ironed out, KyberSwap has promised to give more information in two weeks.
Investigations into the security flaw revealed that the problem started from the time limits in KyberSwap’s focused liquidity pools. This gap allowed a hacker to control liquidity dishonestly, causing a significant loss of funds.
KyberSwap Security Stand: Recovering $4.7 Million & Strengthening Defenses
Moreover, initially thought to be $47 million, the lost amount was confirmed as $48.8 million later. To recover the missing money, KyberSwap offered a 10% bounty to the offender. Instead of a straight yes, they received unusual demands.
Interestingly, KyberSwap has managed to reclaim $4.7 million fraudulently acquired by third-party MEV bots during the cyber attack. The recovery of some of these funds illustrates KyberSwap’s active stance in dealing with such security issues.
Additionally, this event sparked a complete evaluation of the platform’s security measures. The team is now even more dedicated to boosting their defenses to prevent similar events in the future.
In reaction to a crisis, treasury grants have been offered. This shows a significant step in the decentralized finance community. It’s all about keeping trust and getting support from users after security issues have been found.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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