Kyber Network, developer of the Kyberswap Elastic decentralized crypto exchange, has announced on Apr. 17 that there is a potential vulnerability in the exchange’s contracts. It has advised all liquidity providers to remove their funds as soon as possible.
1/2Attention 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
The developer has stated that no funds have been lost. However, it has advised liquidity providers (LPs) to remove their funds as a precaution. Only Kyberswap Elastic funds are at risk. Kyberswap Classic smart contracts do not contain the vulnerability, the team said.
In a separate message, the team stated that farming rewards have been temporarily suspended until a new smart contract can be deployed. All rewards earned prior to 18 April 2023, 11pm (GMT+7) have already been dispersed and are unaffected by this pause.
The developer has stated that it will update the community soon with an explanation as to when funds can be safely deposited back into the protocol.
This is a developing story, and further information will be added as it becomes available.