KyberSwap announced Treasury grants for hacking victims
KyberSwap plans to issue financial aid to users affected by a significant exploit on November 22, which resulted in a $48.8 million loss of the decentralized finance protocol. To address this, KyberSwap has established a grant initiative from the Treasury to provide compensation to those affected by the incident.
The grant is designed to ease the financial burden on affected individuals and is equivalent to the US dollar equivalent of the property lost as a result of the security breach. This move demonstrates KyberSwap's commitment to its user community and platform security. While support specifics and requirements are being finalized, KyberSwap has committed to providing more information in two weeks.
Investigations into the security breach revealed that the vulnerability originated from a ticking gap in KyberSwap's consolidated liquidity pools. This loophole allowed an attacker to artificially control liquidity, resulting in significant liquidity losses.
The loss, initially estimated at $47 million, was later confirmed to be $48.8 million. In an attempt to recover the stolen assets, KyberSwap received a 10% reward to the wrong person for receiving unusual requests rather than accepting them.
Related: KyberSwap Hacker Wants Regulation, Law Firm Says Aussie DeFi Tax Laws ‘Don't Bind': Finance Redefined
Interestingly, KyberSwap has successfully recovered $4.7 million in stolen funds, which were taken separately by third-party MEV bots during the hack. This partial recovery and the proposed Treasury subsidies reflect the platform's proactive approach to addressing security breaches. Additionally, the incident prompted a thorough review of KyberSwap's security protocols, with the team committed to improving defenses against future exploits.
By providing Treasury subsidies, the decentralized financial community's response to this crisis represents a significant effort to maintain trust and support among its users following security breaches.
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