Kyber Network Implements Staff Cuts Following Major Exploit
Decentralized finance (DeFi) platform Kyber Network has announced that it will be reducing its staff by 50% in response to a significant exploit that occurred earlier this year. In November, KyberSwap experienced an exploit that resulted in the loss of $46.5 million worth of digital assets, including Wrapped Ethereum (wETH), Lido-wrapped staked Ethereum (wstETH), and layer-2 scaling solution Arbitrum (ARB).
In order to compensate affected users for their losses, Kyber Network implemented the KyberSwap Elastic Exploit Treasury Grant Program, which covers up to 100% of the losses. Additionally, the company has made significant changes to its business operations, including temporarily pausing liquidity protocol initiatives and the KyberAI project.
While these measures have been taken to ensure a sustainable future for the company, CEO Victor Tran expressed his regret over the decision to reduce the workforce. The affected employees were highly skilled and dedicated individuals who shared a passion for advancing DeFi and providing value to end-users.
Impact on Kyber Network Crystal (KNC)
The native token for Kyber Swap, Kyber Network Crystal (KNC), has seen mostly sideways trading since the exploit. At the time of writing, KNC is valued at $0.72.
Kyber Network’s response to the exploit demonstrates its commitment to compensating affected users and ensuring the sustainability of its operations. While staff cuts are never easy, they are a necessary step in recovering from such incidents and securing a path forward. By implementing the KyberSwap Elastic Exploit Treasury Grant Program and making operational adjustments, Kyber Network aims to rebuild trust and continue driving innovation in the DeFi space. The resilience and dedication of the remaining team members will play a crucial role in the company’s recovery and future success.
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