Kyber Network price dips after withdrawal alert
At press time, the price of Kyber Network Crystal v2 (KNC) had dropped 2.26% today.
Kyber’s Elastic product’s TVL has plunged to $61 million yesterday.
Kyber Network has advised liquidity providers to withdraw funds
The Kyber Network Crystal v2 (KNC) took a hit today after Decentralized finance (DeFi) Kyber Network advises its liquidity providers to withdraw funds citing market vulnerability. The token had dropped by more than 2% at the time of writing.
The protocol advised its Elastic product liquidity providers to withdraw funds after finding a potential vulnerability. Kyber confirmed the potential vulnerability via a tweet although it noted that no product has been affected and no funds have been lost so far.
Elastic product TVL drop
On Sunday, the Elastic product had $108 million in total value locked (TVL). However, that figure had dropped to about $30.88 million on Monday according to DefiLlama.
The news comes at a time when vulnerabilities and exploits have become rife across the DeFi space. The most recent hack includes the $196 million Euler Finance hack, the $23 million Bitrue exchange hack, and the recent Yearn Finance hack.
In 2022, Kyber Network was also hit with a $265,000 exploit.