Popular decentralized exchange KyberSwap recently announced that it plans to offer grants from its protocol treasury to victims of a recent hack. This move aims to provide financial support to users who have lost funds from liquidity pools.
According to KyberSwap, the grants will be equivalent to the USD value of the funds lost as they are withdrawn from their respective liquidity pools. The team is still working on the details of the treasury grants and promises to provide more information in the next two weeks.
The vulnerability in question was caused by a vulnerability in the tick range limits of KyberSwap's concentrated liquidity pools on November 22. This allowed one person to artificially double liquidity and dry up assets. KyberSwap later confirmed that $48.8 million was lost, slightly more than the $47 million in cryptocurrency initially understood to have been stolen.
In an attempt to recover the stolen funds, Kyber offered the hacker a 10% white hat hacker reward in exchange for returning the funds. However, the hacker was not interested in accepting the reward and made other demands in a strange on-chain message, including asking the team for full control over the project.
In a recent interview with the hacker, the attacker said that his goal was to buy KyberSwap cheaply.
Despite the setbacks, the team managed to recover $4.7 million in funds withdrawn during the hack and taken separately by third-party MEV bots.
*This is not investment advice.