KyberSwap Elastic Faces ‘Potential Vulnerability’

The protocol tweeted a warning out to its users, noting that it had temporarily disabled all liquidity pools to address the issue

article-image

CROCOTHERY/Shutterstock modified by Blockworks

share

DeFi protocol Kyber Network announced a “potential vulnerability” on its automated market maker (AMM) platform KyberSwap Elastic on Monday.

While there is relatively little information on the current issue, difficulties may have arisen after a user named Zal encountered an error while withdrawing single-sided liquidity from the platform. After the user posted screenshots of their issue to the Kyber discord, team member Michael_E responded saying, “Your  Lp must have gone out [of] range and sold to one of the [tokens] you used in adding liquidity.”

Shortly thereafter, the team took to Twitter to announce that it had temporarily taken all of Elastic’s liquidity pools offline in order to address the vulnerability. The company tweeted that it is investigating, and reassured participants that “no user funds are lost.”

Loading Tweet..

Kyber also strongly advised liquidity providers to “withdraw your funds on Elastic as soon as possible.”

KyberSwap Classic, the company’s original liquidity protocol, was not affected by the potential exploit.

Blockworks previously reported that KyberSwap suffered a $265,000 hack in September 2022 that Binance helped to unravel. At the time, KyberSwap offered a 15% bounty to the hacker, amounting to around $40,000, if they returned the money.

Kyber Network did not respond to questions by time of publication.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

recent research

Research Report Templates.png

Research

An overview of the Base Ecosystem, with a focus on market leaders.

article-image

Although bitcoin hitting $120k by year’s end is looking unlikely

article-image

About 270 million HYPE has been claimed, valued around $7.6 billion

article-image

Stanford professors David Mazières and Dan Boneh will lead the lab alongside a cohort of graduate student researchers

article-image

With more companies holding BTC, bitcoin yielding strategies could become “a new corporate finance norm,” CoinShares posed

article-image

The proposal comes after Polygon governance considered a controversial use of bridged liquidity for yield

article-image

Can the community balance its decentralized ethos with the need for inclusivity and constructive debate?