Recovering Funds from KyberSwap Hack
Last week, KyberSwap’s concentrated liquidity pools were hacked, resulting in a loss of $47 million. However, the team has managed to recover a portion of the stolen funds through negotiations with the operators of front-running bots. These bots had extracted approximately $5.7 million in cryptocurrency from KyberSwap pools on the Polygon and Avalanche networks during the hack.
Deal with Bot Operators
The bot operators agreed to return 90% of the funds they had taken to a specified KyberSwap address on the Polygon network. As an incentive, they will receive a 10% bounty. This negotiation is separate from the ongoing discussions with the main hacker, who had also expressed interest in negotiating.
Impact and Exploited Vulnerability
The hacker targeted KyberSwap’s Elastic pools, affecting funds across various blockchains such as Arbitrum, Optimism, Ethereum, Polygon, and Binance Smart Chain. The vulnerability exploited by the hacker was related to tick interval boundaries in Kyber’s concentrated liquidity pools. By manipulating these boundaries, they were able to double the liquidity and drain the pools.
Hot Take: A Partial Recovery and Ongoing Negotiations
While recovering some of the stolen funds is a positive development for KyberSwap, there is still work to be done. The negotiations with both the bot operators and the main hacker are ongoing. It remains to be seen if a resolution can be reached with all parties involved. Nonetheless, this incident highlights the importance of addressing vulnerabilities in decentralized exchanges and implementing robust security measures.
By
By
By
By