Kyber Network Forced to Slash Staff by 50% After $46,500,000 Exploit, According to CEO

December 26, 2023 The Daily Hodl

KyberSwap DEX hacker sends an on-chain message: Be nice, or else

November 29, 2023 Coin Telegraph

Bounty Deal

The exploiter behind the $46 million KyberSwap hack says they plan to outline a treaty for the potential return of funds on Nov. 30, but not if threats and hostilities from execs keep up.

The exploiter behind the $46 million crypto theft against KyberSwap has demanded its execs and tokenholders ease up on the hostilities, threatening to push out negotiations until everyone is “more civil.”

In an on-chain message addressed to KyberSwap executives, tokenholders and liquidity providers on Nov. 28, the exploiter said they plan to release a statement around a potential treaty with KyberSwap on Nov. 30 — but won’t do it if hostilities continue.

“I said I was willing to negotiate. In return, I have received (mostly) threats, deadlines, and general unfriendliness from the executive team,” they said.

“Under the assumption that I am treated with further hostility, we can reschedule for a later date, when we all feel more civil,” they warned.

The @KyberNetwork exploiter sent the team another message! pic.twitter.com/DnuKUWjFMn
— Officer's Notes (@officer_cia) November 28, 2023

The team behind KyberSwap — a cross-chain decentralized exchange — initially suggested a bounty deal where the hacker returns 90% of the funds across all exploits, allowing the hacker to keep the remaining 10%.

But they followed up with a threat to pursue legal action after the hacker didn’t comply straight away.

“We have reached out to law enforcement and cybersecurity on this case. We have your footprints to track you,” the KyberSwap team said in a Nov. 25 on-chain message, adding:

“So it's better for you if you take the first offer from our previous message before law enforcement and cybersecurity track you down.”

KyberSwap also told the hacker they would initiate a public bounty program to incentivize anyone providing information to support law enforcement that may lead to their arrest and the recovery of user funds.

The team behind KyberSwap has already managed to recover $4.67 million from the $46 million exploit on Nov. 26 from operators of front-running bots, which managed to extract around $5.7 million in crypto from KyberSwap pools on the Polygon and Avalanche networks.

The team hasn’t yet responded to the exploiter’s latest message on X (formerly Twitter) and is presumably waiting to see the new treaty proposed by the hacker.

A day after the Nov. 22 hack, decentralized finance pundit Doug Colkitt said the attacker used an “infinite money glitch” to carry out a “complex and carefully engineered smart contract exploit” across several networks implementing KyberSwap pools.

Funds were exploited from Avalanche, Polygon and Ethereum and layer-2 networks Arbitrum, Optimism and Base.

KyberSwap runs on Kyber Network, a blockchain-based liquidity hub that aggregates liquidity across different blockchains and enables the exchange of tokens without an intermediary.

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October 26, 2022 The Daily Hodl

$19.2 Billion in Staked Assets — Liquid Staking Solution Lido Set to Surpass Curve’s TVL

April 21, 2022 Bitcoin.com

Haven Protocol (XHV) shows strong signs of bottoming out after crashing 90%

March 11, 2022 Coin Telegraph

Altcoin

The Monero blockchain fork has surged by nearly 100% in the past five days against a rising appetite for privacy-focused cryptocurrencies.

Haven Protocol (XHV) showed signs of returning to its bullish form as its price doubled in just five days of trading.

What's pumping Haven Protocol?

XHV's price surged by up to 107% week-to-date to climb above $3.60 on March 11, its highest level in more than three months. Interestingly, the move upside followed a period of aggressive selloffs that saw XHV's value dropping from nearly $20 in November 2021 to as low as $1.60 in early February 2022 — an approximately 90% decline.

*XHV/USD weekly price chart. Source: TradingView*

Traders started returning to the Haven Protocol market against the prospects of two macroeconomic scenarios: U.S. President Joe Biden's executive order that focuses on cryptocurrencies and hardline western sanctions on Russian oligarchs amid an escalating military standoff between Ukraine and Russia.

In the order titled "Ensuring Responsible Development of Digital Assets," President Biden directed federal agencies to submit reports on cryptocurrencies and consider introducing new regulations for the sector.

Meanwhile, western powers decided to cut Russia out of the Swift global banking system while imposing targeted sanctions on some of the country's wealthiest individuals.

Crypto investors priced in the effects of these two updates, deciding to bid up the prices of privacy-enabled digital assets that promise to secure financial transactions from regulatory watchdogs.

As a result, Monero (XMR), Kyber Network (KNC), Tornado Cash (TORN) and other privacy coins outperformed the crypto market massively this week.

Privacy coins have surged, with #Monero posting +26% gains over the last 24-hours to lead the top-100.

During times of unprecedented censorship in the crypto world, no wonder that the price of privacy coins, like $XMR, is surging. #XMR
— Weiss Crypto (@WeissCrypto) March 9, 2022

Haven Protocol, a fork of the Monero blockchain that promotes itself as an "offshore bank," appears to have rallied on similar sentiment.

Fractal suggests more gains for XHV

The recent bout of buying in the Haven Protocol market may have also emerged owing to a multi-month technical support level.

XHV's price rebounded after failing to close below its descending channel support on multiple attempts, as shown in the chart below.

Notably, the token's last 90% drop towards the same price floor in 2021 led to a sharp upside retracement from around $2.50 in June to around $20 in November.

*XHV/USD weekly price chart featuring descending channel. Source: TradingView*

XHV's price hints at undergoing a similar, extended upside recovery after its latest bounce. In doing so, the Haven Protocol token might retest the resistance trendline of its descending channel setup — around $10.

Conversely, a pullback risk declines below XHV's previous support lines inside the $1.00–1.50 range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Solana (SOL), Chainlink (LINK) and Three Additional Altcoins Are Ones To Watch This February: Crypto Analyst

February 2, 2022 The Daily Hodl

Kyber expands to Polygon, announces $30M ‘Rainmaker’ liquidity mining program

June 16, 2021 Coin Telegraph

Kyber expands to Polygon, announces M ‘Rainmaker’ liquidity mining program

Coin Telegraph

The Kyber Network is set to float a $30 million liquidity mining program on both Ethereum and Polygon pools.

Decentralized finance liquidity hub Kyber Network is set to become the next DeFi protocol to enter the expanding Polygon ecosystem.

In a statement issued on Wednesday, Kyber announced the launch of Rainmaker, a liquidity mining program on the platform’s Dynamic Market Maker protocol that will commence on June 30 to mark Kyber’s expansion to Polygon.

According to the announcement, the Rainmaker program will distribute $30 million in rewards to liquidity providers on the Kyber DMM across both Polygon and Ethereum.

Of the total reward pool, 12.6 million Kyber Network Crystal (KNC) — about $25 million — will be distributed to liquidity providers (LPs) on selected Ethereum-based amplified pools. The remaining 2.52 million KNC — about $5 million — will be for LPs on Polygon-based amplified pools.

These rewards be will in the form of KNC and of Polygon's MATIC tokens, which can also be staked to provide liquidity on KNC and MATIC pools to compound reward earnings. Rainmaker reward earners who receive KNC can also stake some on the KyberDAO to participate in governance activities thereby earning additional voting rewards.

According to the announcement, the Polygon phase of the Rainmaker liquidity mining program will run for two months, while that for Ethereum will take place over three months — starting June 30 for both.

Apart from the $5 million worth of KNC, Kyber is also contributing $500,000 in MATIC “coins” for the Rainmaker liquidity mining program.

For Kyber, Rainmaker will help to further expand Polygon’s growing liquidity. Indeed, DeFi projects continue to establish a presence on Polygon amid a broader push for multichain strategies and greater overall scalability.

Detailing the importance of the Kyber DMM and Polygon partnership, Kyber Network CEO Loi Luu told Cointelegraph: "Kyber’s vision is to deliver a sustainable liquidity infrastructure for DeFi, and this also extends to fast-growing ecosystems such as Polygon," adding:

"This Polygon partnership and the $30M Rainmaker liquidity mining program will help showcase the powerful benefits of the Kyber DMM protocol and is an important step towards greatly boosting liquidity for DeFi, as well as growing the number of users, developers, and Dapps in the Kyber and Polygon ecosystems."

Polygon usage continues to skyrocket triggering significant integration efforts by DeFi primitives. Back in May, 0x — a liquidity bridge for decentralized exchanges (DEXs) — announced an API tool for Ethereum-based DEXs like SushiSwap, mStable and Dfyn to interact with the Polygon ecosystem.

Ren — a cross-chain liquidity protocol — has also created a bridge to allow porting of Ren-based wrapped tokens to the Polygon network.

DeFi Staple Kyber to Launch on Polygon

June 16, 2021 The Crypto Briefing

Kyber Network introduces Uber-style surge pricing for DeFi token swaps

April 8, 2021 Coin Telegraph

AMM

Dynamic fees will improve capital efficiency on the new DMM.

Decentralized exchange Kyber has launched a Dynamic Market Maker, or DMM, in what it claims is a world first.

The new platform, which was announced on April 5, has been designed to optimize fees and enable extremely high capital efficiency for liquidity providers.

One of the major differences between Kyber’s new platform and regular Automated Market Makers, or AMMs, is the fee generation system. While platforms such as Uniswap charge a fixed trading fee of 0.3%, the new DEX will calculate fees dynamically, increasing during times of high volatility and demand, and decreasing when markets are quiet. This encourages traders to take advantage of cheaper trade opportunities which improve capital efficiency for LPs and the platform.

The system mimics the Uber-style surge pricing that increases prices when there is a lot of demand for rides, such as in bad weather or rush hour, and drops them when there is less demand and traffic levels have returned to normal.

Kyber Network is an on-chain liquidity protocol that has a DEX called KyberSwap, which allows users to swap crypto assets without a central order book or operator. Much of the inspiration for the new DMM has been taken from the current Uniswap interface.

According to the DMM dashboard, liquidity on the platform is currently $20.5 million with a daily volume of $490,000. Kyber’s native token, KNC, has retreated over the past 24 hours dropping 5.7% to $3.13 according to Coingecko.

The new DMM also operates a “programmable pricing curve” which allows liquidity pool creators to customize pricing through an “amplification factor” based on the nature of the relationship between the two tokens.

In essence, tokens that have a lower deviation from their prices such as stablecoins can have a higher amplification factor which allows the liquidity to increase without needing more tokens in the pool. These features have also been included in the Uniswap v3 upgrade which also aims to improve capital efficiency by optimizing the bonding curve.

Pool creators can set their own AMP factor which increases the liquidity depending on the type of tokens in the pool — stable tokens can have a higher factor, whereas more volatile ones will be set lower.

“This means that given the same liquidity pool and trade size, Kyber DMM can provide much better liquidity and slippage compared to AMMs. Slippage can potentially be 100X better than AMMs for more stable pairs!”

The announcement added that the code has been fully reviewed and audited multiple times by both the internal team and external auditors with no critical issues found. It stated that the full audit will be released soon but added that the protocol is still in beta.

Kyber Network

What's pumping Haven Protocol?

Fractal suggests more gains for XHV

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