The team behind decentralized finance protocol KyberSwap has made the difficult decision to reduce its workforce by 50% following a major exploit that cost the company $48.8 million. CEO Victor Tran expressed his regret over the layoffs, stating that it was a heart-wrenching decision. However, the company plans to support the departing employees by creating a voluntary database to help them find new opportunities in the Web3 space.
In order to manage its capital expenditure, Kyber Network has temporarily paused its liquidity protocol initiatives and KyberAI project. Despite these setbacks, Tran emphasized that the core business of the company remains intact, including KyberSwap’s Aggregator and Limit Order functions. Additionally, Kyber Network will soon be launching its Zap API, which aims to provide a convenient gateway for users to access DeFi liquidity protocols through dApps, wallets, and other projects.
While the company focuses on its recovery, it is also committed to reimbursing customers affected by the November exploit. Kyber Network has initiated its Treasury Grants Program to facilitate this process, with the distribution of funds scheduled for February 1, 2024. Impacted users will need to register for reimbursement between January 11 and January 23, 2024. However, it is important to note that users will only receive 60% of the reference value of nearly $49 million, as an additional $6.6 million was stolen from front-run bots following the initial exploit.
The exploit itself was described as a complex and carefully engineered smart contract exploit across multiple networks, including Avalanche, Polygon, Ethereum, Arbitrum, Optimism, and Base. The hacker initially attempted to negotiate a bounty deal with the Kyber team, but their demands for complete control over the company, including its assets and governance mechanism, were rejected.
Despite the challenges faced, KyberSwap continues to operate on the Kyber Network, a blockchain-based liquidity hub that facilitates token exchange without the need for intermediaries.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Doug Colkitt, Victor Tran |
| Companies | KyberSwap, Kyber Network, Avalanche, KyberDAO, Polygon |
| Currencies | Avalanche, Polygon, Ethereum, united states dollar stablecoins, Arbitrum |
| Securities | None |
