Kyber Network, a popular decentralized finance (DeFi) protocol, has reported a “potential vulnerability” in its automated market maker (AMM) platform KyberSwap Elastic. The issue was brought to light by a user named Zal, who encountered an error while attempting to withdraw single-sided liquidity from the platform.
Although details of the problem remain scant, it appears that Zal’s LP (liquidity provider) went out of range and sold to one of the tokens used to add liquidity. Following the discovery of the potential vulnerability in Kyber Network’s KyberSwap Elastic platform, the team has taken quick action by temporarily shutting down all of the platform’s liquidity pools.
In a tweet, the company announced that it is investigating and working to address the issue. While the incident undoubtedly concerns users, Kyber Network has provided some reassurance by confirming that no user funds have been lost due to the vulnerability.
In light of the potential vulnerability in Kyber Network’s KyberSwap Elastic platform, the company has strongly advised all liquidity providers to withdraw their funds as soon as possible. The move is part of the company’s efforts to ensure the safety and security of its users’ funds while it addresses the issue.
Meanwhile, KyberSwap Classic, the company’s original liquidity protocol, remains unaffected by the potential exploit, and users can still use the platform as normal.
