Crypto Exchange Bittrex Cracked Down: What You Need To Know

• Kyber Network’s DeFi protocol has urged all liquidity providers to withdraw their funds from its KyberSwap Elastic decentralized exchange due to a potential vulnerability in the contract.
• The team assured that no funds have been compromised, but recommended LPs to take precautionary measures.
• As a result of the announcement, TVL in Kyber Network’s Elastic product dropped from $108 million to $17.71 million and KNC dropped by 4%.

Kyber Network’s DeFi Protocol Urges Liquidity Providers To Withdraw Funds

Kyber Network, a decentralized finance (DeFi) protocol, has urged the liquidity providers (LPs) on its KyberSwap Elastic decentralized exchange to withdraw their funds due to a possible vulnerability in the exchange’s contract. The risk is only limited to KyberSwap Elastic funds, while KyberSwap Classic smart contracts are unaffected by the vulnerability.

No Funds Compromised But Precautionary Measures Taken

Kyber Network has assured the community via a tweet on April 17 that no funds have been compromised, but to err on the side of caution; it has recommended that liquidity providers withdraw their funds.

TVL Drops 80%, KNC Drops 4%

Defillama’s data reveals a sharp decline in the total value locked (TVL) in Kyber Network’s Elastic product, which plummeted to $17.71 million from $108 million on April 16. Furthermore, Coinmarketcap data shows that KNC token price dropped by 4% following the news about potential vulnerability of Kyberswap Elastic DEX platform.

Precautionary Steps Recommended By Team

The team suggested Liquidity Providers should take some precautionary steps such as withdrawing their funds from elastic pool immediately and updating token balances accordingly for both classic and elastic pools if they are running them simultaneously for best safety practices for their assets stored in those pools.

What Will Happen Next?

It remains unclear whether or not any further measures will be taken by Kyber Network regarding this issue and how long it will last until full normalization is achieved again within its ecosystem.

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