Case study
KYBER NETWORK ($KNCL)
0/99
Security score compelled a check on latest information about the token which are aligning to the low security score on the audit.
2 Potential exploits found by the AI audit were aligned to the cause of the hack ($KNCL)
ARC's technology might have averted the $48 million loss in the KyberSwap hack.
ARC Audit:
Stake, Scale, and Save with ARC: $ARC is not just a token; it's a gateway to a safer, more accessible WEB3. By staking $ARC, you help secure the network and gain access to a slew of benefits that grow with your investment. From reducing gas fees to accessing premium features and support, the $ARC token is designed to support your digital journey at every step.
Learn more
Executive Summary
This case study examines a significant hack on KyberSwap Elastic in November 2023, where the attacker exploited a precision error in the decentralized exchange protocol, leading to a loss of approximately $48 million.
Problem Statement
In the hack, KyberSwap faced a critical challenge due to a vulnerability in its concentrated liquidity calculations. This flaw was exploited by an attacker, who manipulated pool liquidity through a flash loan and capitalized on arithmetic errors, resulting in a substantial financial loss.
Analysis
The decentralized exchange aggregator operating across multiple chains, was compromised through a reentrancy attack on its smart contract, resulting in a loss of around $48 million over several networks and a 90% decline in its total value locked (TVL).
Results
The attack resulted in a significant loss for KyberSwap, emphasizing the importance of rigorous security measures in DeFi protocols. It also illustrates the potential effectiveness of tools like Archimedes' audit feature in identifying such vulnerabilities.
Conclusion
The KyberSwap incident underscores the crucial need for advanced security measures in the DeFi space. It demonstrates how comprehensive auditing tools can play a vital role in preventing similar exploits and ensuring the security of decentralized protocols.
By continuing, you will be leaving the Arc Labs AG (“Arc”) website and join a website made available by a third party using Arc open-source software—independent from and unaffiliated with Arc.
Arc does not deploy or run decentralized exchange software for public use, nor does it operate or control any such infrastructure. Arc is not responsible for any action taken or content on the third-party website.
Services and products available through this link are not available to persons who are residents of, are located or incorporated in, or have a registered agent in the U.S., Canada or a restricted territory. More details can be found in our Terms of Use.
Got it!
By continuing, you will be leaving the Arc Labs AG (“Arc”) website and join a website made available by a third party using Arc open-source software—independent from and unaffiliated with Arc.
Arc does not deploy or run decentralized exchange software for public use, nor does it operate or control any such infrastructure. Arc is not responsible for any action taken or content on the third-party website.
Services and products available through this link are not available to persons who are residents of, are located or incorporated in, or have a registered agent in the U.S., Canada or a restricted territory. More details can be found in our Terms of Use.
Got it!
By continuing interacting with this web page’s content, you acknowledge that the ARC and stARC tokens are utility elements within the ARC ecosystem, and cannot be considered as investment contracts, securities, or any form of financial instrument under U.S. law.
Got it!
reactor
protocol