KyberSwap Undergoes 50% Headcount Reduction Amidst Security Breach

Amidst its recent Elastic security exploit, Decentralized Exchange (DEX) protocol KyberSwap has decided to undergo a headcount reduction to keep its operations afloat. Victor Tran, KyberSwap CEO and co-founder announced a 50% reduction of the company’s workforce. This is a clear indication that the Elastic exploits brought unprecedented challenges to the protocol.

The move demonstrates KyberSwap’s commitment and resilience towards providing innovative solutions to its users in the face of any difficulty. 

KyberSwap to Support Departing Team Members 

KyberSwap plans to support affected employees through the transitioning process. Specifically, the company intends to open a voluntary database to connect the affected team members with potential opportunities in the Web3.0 ecosystem. Tran commended the departing employees’ dedication and integrity towards their work. 

Also, he described them as rare assets in the fast-paced Decentralized Finance (DeFi) industry. Other Web3.0 founders are encouraged to hire these skilled individuals as part of their team, not just for their capabilities but also as an invaluable commitment to the industry.

$47M Exploit on The Elastic Liquidity Protocol 

Last month, KyberSwap was attacked by an unidentified entity that ended up transferring funds linked to KyberSwap into a single wallet. One X user identified as Spreek discovered the unauthorized wallet movement on KyberSwap and reported it immediately. 

A total of $47 million was lost including $20.7 million on Arbitrum, $15 million on Optimism, $7 million on Ethereum, $3 million on Polygon, and $2 million on Coinbase’s Base. Shortly after the exploit, the hacker released a message stating that negotiations for the stolen funds would commence once he is fully rested.  

Kyber Demonstrates Resilience and Commitment 

Despite this setback, Tran noted that KyberSwap will support users who were affected by the Elastic exploit through the designated Treasury Grant Program. According to the KyberSwap executive, the program will cover up to 100% losses. In the meantime, KyberSwap’s liquidity protocol initiatives and the KyberAI project have been temporarily suspended. 

Furthermore, Tran acknowledged KyberSwap’s resilience amidst the crises. The platform is still set to launch Zap API, a pioneering development that enhances the accessibility to DeFi liquidity protocols. The move to reduce its headcount is geared towards helping the protocol realign its resources. Generally, KyberSwap has demonstrated some strategic moves which confirms its underscores its push to weather the storm.