Kyber Network, a popular decentralized finance (DeFi) protocol, warned users of a possible security vulnerability in its Elastic platform, urging them to withdraw their funds as a precautionary measure.
The team assured users that investigations are ongoing and no user funds have been lost.
The Kyber team stated, "We have identified a potential vulnerability and strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible. Investigations are ongoing, and no user funds are lost."
Elastic is a decentralized exchange platform that enables users to swap tokens and liquidity providers to deposit tokens and earn a yield on their deposits.
Also Read: The Real Reason Why Shaquille O'Neal Is In Hot Water Along With FTX Co-Founder
As a precaution, the Kyber team has paused users from adding liquidity to the platform.
They also promised to provide more details on the situation when KyberSwap Elastic is re-enabled.
Another exchange product, KyberSwap Classic, remains unaffected.
Following the warning, the total value locked in the Elastic platform fell from $105 million to approximately $52 million as users withdrew their funds.
It's worth noting that KyberSwap Elastic utilizes the concentrated liquidity concept, similar to Uniswap v3, which allows liquidity providers to specify price ranges for their liquidity positions.
Despite this, the vulnerability discovered by Kyber Network has raised concerns, and the team is taking necessary measures to protect users' funds.
Read Next: The $7M Transfer Do Kwon Reportedly Made To Law Firm Just Before Terraform Labs' Downfall
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
