DeFi
Decentralized finance (DeFi) protocol Kyber Network has advised liquidity providers on its Elastic product to withdraw funds after finding a potential vulnerability.
The protocol confirmed the potential vulnerability in a tweet while noting that no funds had been lost and that the KyberSwap Classic product is unaffected. The protocol’s native token, KNC, dropped by 2% following the tweet.
The Elastic product had $108 million in total value locked (TVL) on Sunday, but that figure has now slumped to $61 million according to DefiLlama.
Vulnerabilities and exploits have been rife across the DeFi ecosystem this year, with Euler Finance losing almost $200 million in an attack last month.
Kyber Network was hit with a $265,000 exploit in 2022.
The protocol confirmed that investigations are ongoing.
