Possible Vulnerability in DEX “KyberSwap Elastic”, Recommend Withdrawal to Liquidity Providers

Risk of vulnerabilities in DEX

The decentralized exchange (DEX) project “Kyber Network” announced on the 17th that “KyberSwap Elastic” may have a vulnerability.

Strongly encourage liquidity providers (LPs) to withdraw assets as quickly as possible. The investigation is ongoing, but at the time of publication, no user assets were stolen.

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Attention KyberSwap Elastic Liquidity Providers:
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.

— Kyber Network (@KyberNetwork) April 17, 2023

connection: What is DEX | Detailed explanation of the decentralized exchange with a market capitalization of over $23 billion

KyberSwap Elastic is a decentralized platform for market makers. An updated version of KyberSwap Classic, KyberSwap Elastic allows you to set price ranges to provide liquidity.

connection: What is AMM (automated market maker) | Explanation of mechanism and risks

Kyber Network explained that KyberSwap Classic is unaffected at this time. He said he would release more details as soon as the KyberSwap Elastic issue is resolved.

After that, he explained that farming and payment of farming rewards will be stopped from 1:00 on the 19th Japan time. It says it will resume after deploying a new smart contract.

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Notice of Temporary Halt of Farming Rewards:
We will be pausing farms and farming rewards from 18 April 2023, 11pm (GMT+7), while an upgraded KyberSwap Elastic Smart Contract is being deployed.

All existing rewards that KyberSwap users have earned are not affected. https://t.co/IH7FK6oi1g

— Kyber Network (@KyberNetwork) April 17, 2023

As mentioned above, KyberSwap Elastic is a platform that allows you to set price ranges and provide liquidity, just like Uniswap v3. Liquidity providers can increase capital efficiency by setting price ranges.

connection: Why the DEX market is attracting attention in April when Uniswap v3 commercial use restrictions expire

Examples of front-end attacks

Kyber Network reported a front-end attack in September last year. At this time, crypto assets (virtual currency) worth a total of 37 million yen ($265,000) at the rate at the time were stolen from the two user addresses.

Malicious programs were eliminated after about two hours of investigation. Kyber Network promised full compensation to the victims.

connectionBinance Identifies Two Suspects Attacking KyberSwap

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