TechFlow News — KyberSwap has launched a special compensation program for users affected by the earlier vulnerability in KyberSwap Elastic. This initiative aims to support users who lost assets during the exploit.
According to the announcement, affected users will be categorized into five groups based on their loss circumstances:
1. Primary Exploit (Category 1): The main KyberSwap Elastic exploit that occurred on the evening of November 22, 2023, resulting in stolen assets from liquidity pools with a market value of approximately $48.83 million.
2. First Batch of Imitation Bot Activities (Category 2): Losses caused by two bots imitating the primary attack immediately afterward, amounting to approximately $170,000 in market value.
3. Second Batch of Imitation Bot Activities (Category 3): Activities by two additional front-running bots mimicking the main exploit, causing losses and partial recovery of assets, valued at approximately $6.4 million.
4. Locked Assets Due to the Exploit (Category 4): Assets rendered non-withdrawable due to incorrect pool states caused by the exploit, valued at approximately $24,000.
5. Recovered Assets Post-Exploit (Category 5): Assets recovered from liquidity pools after the exploit, valued at approximately $706,000.
For users falling into these categories, KyberSwap offers three compensation options:
Option A: 60% of the reference value of lost assets in USD stablecoins, paid over three months.
Option B: 100% of the reference value of lost assets in USD stablecoins, paid over twelve months.
Option C: Opt out of the compensation program. This program primarily supports users who suffered losses in Categories 1, 2, and 4, as assets in these categories have not been recovered. Eligible users must complete a KYC process to comply with funding terms.
The compensation program will begin on February 1, 2024, disbursing USD stablecoins to users via linear vesting.
In addition, KyberSwap is processing the affected assets in Categories 3 and 5, some of which have already been recovered. These recovered assets will be proportionally distributed to each affected address.
