KyberSwap recovers $4.7 million after exploit

Decentralized exchange protocol KyberSwap has recovered $4.67 million in funds following a recent security attack. 

A hacking incident resulted in a loss of $47 million from Kyber's concentrated liquidity pools last week.

A portion of funds' recovery was completed yesterday through negotiations with the operators of front-running bots, which extracted about $5.7 million in crypto from KyberSwap pools on the Polygon and Avalanche networks during the hack, the team said. 

The bot operators agreed to a deal in which they would return 90% of the funds they had taken to a specified KyberSwap address on the Polygon network, with a 10% bounty as their incentive.

This negotiation is distinct from the main event’s hacker, who had previously indicated a willingness to negotiate. While the team offered a white hat bounty, that negotiation has seemingly not yet progressed.

The hacker had targeted KyberSwap’s Elastic pools, impacting funds across multiple blockchains, including Arbitrum, Optimism, Ethereum, Polygon, and Binance Smart Chain.

The vulnerability exploited by the hacker was linked to an issue with the tick interval boundaries in Kyber’s concentrated liquidity pools, which they manipulated to double the liquidity and then drain the pools.