KyberSwap Reduces Workforce by 50% after Elastic Exploit
KyberSwap has made the difficult decision to reduce its workforce by 50% in response to the challenges caused by the Elastic exploit. The exploit resulted in a loss of over $54 million of users’ funds, prompting the need for significant changes in the company’s operations.
“Regrettably, we have also reduced our workforce by 50%. The past few days have been among the most challenging in my journey as an entrepreneur.”
– Victor Tran, KyberSwap CEO and co-founder
Despite implementing the Treasury Grant Program to cover users’ losses, KyberSwap found it necessary to take further measures to ensure a sustainable path forward. As part of these strategic changes, KyberSwap has temporarily halted its liquidity protocol initiatives and the KyberAI project.
Treasury Grant Program Offers Options for Affected Users
The Treasury Grant Program provides eligible affected users with different options related to each address for Treasury Grants. These options include stablecoin equivalents with vesting periods of three or 12 months, representing 60% or 100% of the reference value of affected assets. Users also have the choice to opt-out if desired.
Exploit Details and Hacker’s Demands
In late November, KyberSwap fell victim to a multimillion-dollar hack when an unknown hacker exploited a bug in the tick interval boundaries of Kyber’s concentrated liquidity pools. The hacker then demanded complete control of the protocol, its assets, temporary ownership of KyberDAO and its governance mechanism, and access to company records.
Hot Take: KyberSwap Faces Challenges and Implements Layoffs Following Elastic Exploit
KyberSwap has faced significant challenges after the Elastic exploit, resulting in a loss of over $54 million. To ensure a sustainable future, the company has reduced its workforce by 50% and temporarily paused its liquidity protocol initiatives and the KyberAI project. The Treasury Grant Program offers affected users options to recover their losses. Despite these setbacks, KyberSwap remains committed to its core business functions and upcoming Zap API launch. The exploit highlights the ongoing security risks in the crypto industry and the need for robust measures to protect user funds.
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