Kyber Network Faces Drastic Downsizing Post-Exploit

In a dramatic turn of events, Kyber Network has made the tough decision to slash its workforce by 50%. This drastic move comes just a month after the network suffered a severe $48.8 million exploit, sending shockwaves through the DeFi community.

A Tough Decision Amidst Crisis

Victor Tran, the CEO of Kyber Network, expressed deep regret over the decision to let go of half of the company’s staff. “The decision to part ways with so many of our team members was heart-wrenching,” he stated in a recent announcement. The cutback is part of a broader strategy to maintain the firm’s operational viability in the wake of the November exploit that hit KyberSwap, its decentralized exchange.

Despite the challenges, Tran assured that Kyber Network’s core services, such as the Aggregator and Limit Order functions, remain robust. He also teased the upcoming launch of the Zap API, a promising innovation expected to enhance dApps and wallets, making them more accessible gateways to DeFi liquidity protocols.

In a compassionate move, Kyber Network plans to create a “voluntary database” to assist the departing employees in finding new opportunities within the Web3 sector. This gesture reflects the company’s commitment to its team and the broader blockchain community.

To curb capital expenditure, Kyber Network has temporarily halted certain projects, including its liquidity protocol initiatives and the KyberAI project. However, the company remains focused on its main business operations and the forthcoming Zap API.

In response to the November exploit, Kyber Network initiated the Treasury Grants Program to reimburse impacted customers. The reimbursement, set in United States dollar stablecoins, is scheduled for February 1, 2024. Impacted users need to register for this compensation between January 11 and January 23, 2024.

The Kyber team initially attempted to negotiate with the hacker, who exploited a complex smart contract vulnerability across multiple networks. However, the demands of complete control over the company led to a stalemate. The exploit affected multiple chains, including Avalanche, Polygon, Ethereum, and several layer-2 networks.

Kyber Network’s decision to downsize its workforce in the wake of the exploit is a stark reminder of the risks inherent in the DeFi sector. While the network’s core functions remain strong, the incident underscores the need for heightened security measures and community support. As Kyber Network navigates these challenging times, its commitment to innovation and customer compensation highlights its resilience and dedication to the DeFi ecosystem.