KyberSwap warns LPs to withdraw

Kyber Network, the developer of the decentralized cryptocurrency exchange Kyberswap Elastic, announced on April 17 that there is a potential flaw in the exchange’s contracts. It has advised all liquidity providers to withdraw their funds immediately.

The developer has stated that there has been no loss of funds. As a precaution, it has advised liquidity providers (LPs) to withdraw their funds. At peril are only Kyberswap Elastic funds. The team stated that Kyberswap Classic smart contracts do not contain the vulnerability.

The team announced in a separate message that agricultural rewards have been momentarily suspended until a new smart contract can be implemented.

All rewards earned before the message that agricultural rewards have been momentarily suspended until a new smart contract can be implemented. All rewards earned before April 18, 2023, at 11:59 p.m. (GMT +7) have been distributed and are unaffected by this pause.

The developer has promised to provide the community with an explanation of when funds can be securely deposited back into the protocol.

KyberSwap Elastic, according to its official documentation, is a decentralized exchange (DEX) that enables limited partners to provide “concentrated liquidity.”

Instead of mandating them to provide liquidity at any price point, they can set a maximum and minimum price for the tokens they deposit into the pool.

If the price falls below the floor or rises above the ceiling, limited partners will no longer receive fees.

However, they receive greater compensation if the price remains within the range they’ve established. This is in contrast to the previous version of the DEX, KyberSwap Classic, which did not permit concentrated liquidity.

In September, the user interface for Kyberswap was compromised, leading to the theft of $265,000 worth of cryptocurrency.