Victor Tran, the CEO and co-founder of Kyber Network, has made great strides to recover from a disastrous security incident that happened in November.
In spite of the difficulties caused by the “Elastic exploit,” the most recent announcement states that KyberSwap’s primary business, which includes the aggregator and limit order operations, is still fully operational.
According to Tran, Kyber Network is about to release the Zap API. This will allow dApps, wallets, and other initiatives to facilitate user access to DeFi liquidity protocols.
For the sake of “ensuring a sustainable future,” Kyber Network has also temporarily halted liquidity protocol activities and the KyberAI project, among other operational modifications. Tran went on to say:
“Unfortunately, we have also cut our staff by half. As an entrepreneur, I can honestly say that the last few days have been the most difficult. It was a painful choice to fire a large portion of our workforce. Everyone here is very competent and dedicated to furthering DeFi and providing real value to consumers.”
The KyberSwap Elastic Attack Treasury Grant Program, which Tran said is part of Kyber Network’s reaction to the Elastic attack, will repay consumers for their losses up to 100%.
Kyber Network has broken down the impacted assets into several categories and explained the repercussions for each one to help put things in perspective.
Category 1 assets are those that were impacted by the main exploit that started on November 22, 2023, according to the network’s blog post. These assets were seized from the affected pools.
Totaling $48,883,930.66, this section accounts for liquidity holdings as well as fees paid to liquidity providers (LPs). Importantly, the network has confirmed that these assets are still missing.
Category 2 Mimicking Bots (MBA) are responsible for removing assets from impacted pools via future action.
Two bots that mimicked the main exploit acquired these assets, which are worth a total of US$172,148.52. These items are still missing, much like those in Category 1.
Assets that were impacted but later removed from affected pools are part of Category 3, which also includes assets that were affected but switched out. These assets are collectively called Category 3 Mimicking Bots (MBA).
Even if some of the damaged assets were partly restored, others were replaced with Category 3 swapped items. Based on the final block before the Category 3 MBA, the market value of the Category 3 Affected Assets is $6,405,483.43.
At the moment, assets belonging to Category 4 are stuck in impacted pools because of an “incorrect pool state” caused by the main exploit and MBA. There is a total worth of $24,478.93 for these assets.
Also Read: MicroStrategy’s Bitcoin Bet Rewarding Investors with Dividends
