- KyberSwap is setting up a grant program to compensate those impacted by the incident.
- Affected persons will get a grant equal to the USD equivalent of the assets lost.
The DeFi protocol KyberSwap lost $48.8 million due to a major vulnerability that occurred on November 22. The company plans to compensate individuals who were impacted financially. In response, KyberSwap is setting up a grant program to compensate those impacted by the incident using funds from its treasury.
Affected persons will get a grant equal to the USD equivalent of the assets lost in the security breach, which is intended to alleviate some of the financial strain. In doing so, KyberSwap demonstrates its commitment to the safety of its platform and its user base. The exact specifics and requirements of the award are still being worked out, but KyberSwap has promised to provide further information within two weeks.
Noteworthy Attempt
Based on the findings of the security breach investigation, the vulnerability in KyberSwap’s concentrated liquidity pools was caused by the tick interval boundaries. Because of this vulnerability, an attacker could potentially artificially manipulate liquidity, leading to a significant loss of funds.
The loss was eventually confirmed to be $48.8 million, although it was first estimated at $47 million. In an effort to recover the stolen assets, KyberSwap offered a 10% incentive to the culprit, but instead of accepting, they received a demand for executive control of the organization.
Notably, third-party MEV bots took $4.7 million during the breach, but KyberSwap managed to restore that amount. A noteworthy attempt to preserve confidence and support among its users after security breaches has been made via the provision of treasury grants as a remedy to this problem.
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- Source: https://thenewscrypto.com/kyberswap-to-compensate-users-affected-by-hack-with-treasury-grants/
