In November 2023, the KyberSwap Elastic platform suffered a major security exploit that cost users over $56 million. This incident wasn't just a minor glitch-it shattered trust in one of the industry's most innovative decentralized exchanges. Today, we're diving into what KyberSwap Elastic actually is, how it works, and whether it's safe to use in 2026. This review cuts through the hype to give you clear facts about its strengths, weaknesses, and real-world impact.
What is KyberSwap Elastic?
KyberSwap Elastic is a decentralized exchange protocol operating on the Polygon blockchain network. Launched in 2022, it's an upgraded version of KyberDMM (now called KyberSwap Classic), built by co-founders Loi Luu and Victor Tran. Luu holds a PhD in Computer Science from the National University of Singapore and worked at the Ethereum Foundation from 2016-2017. Tran brings expertise as a senior backend engineer with a B.S. in Computer Science from Vietnam National University. Unlike traditional constant product AMMs, KyberSwap Elastic uses a tick-based system that allows liquidity providers to concentrate their assets within specific price ranges.
This approach maximizes capital efficiency but introduces complexity. The platform currently supports 3 coins across 4 trading pairs on Polygon, with an average bid-ask spread of 0.882%. It ranks in the 48th percentile for volume but hits the 2nd percentile in orderbook depth-showing strong liquidity for its size.
How KyberSwap Elastic Works
At its core, KyberSwap Elastic uses concentrated liquidity pools. Liquidity providers can choose custom price ranges for their assets instead of spreading them across the entire curve. This means more capital is deployed where trades actually happen, reducing slippage. For example, if you're providing liquidity for ETH/USDC, you can set a range between $1,800 and $2,000, focusing your funds where most activity occurs.
The platform offers five fee tiers: 0.008%, 0.01%, 0.03%, 0.04%, and 1%. Providers pick a tier based on volatility. Stablecoin pairs might use 0.008%, while high-risk tokens could use 1%. This flexibility helps match risk tolerance with potential rewards.
Another key feature is the Reinvestment Curve mechanism. Instead of manually claiming fees, the protocol automatically compounds earnings by reinvesting them into the pool. This saves time and boosts returns-though it requires careful monitoring to avoid impermanent loss.
Pros of KyberSwap Elastic
- Multi-chain support: Unlike single-chain DEXs, KyberSwap Elastic aggregates liquidity across Ethereum, Polygon, BSC, Avalanche, Fantom, Arbitrum, and Optimism. This means better prices and lower slippage for cross-chain swaps.
- Custom fee tiers: The five fee levels let liquidity providers tailor their risk exposure. This is more granular than competitors like Uniswap V3, which only offers four tiers.
- Capital efficiency: Concentrated liquidity means more trading volume per dollar invested. For stablecoins, this can reduce slippage by up to 50% compared to traditional AMMs.
Security Concerns: The 2023 Exploit
Despite its innovations, KyberSwap Elastic's security track record is deeply flawed. In November 2023, attackers exploited a critical flaw in the computeSwapStep() function. CertiK's audit revealed the issue stemmed from incorrect price boundary calculations during cross-tick operations. This led to rounding errors that allowed malicious actors to manipulate liquidity accounting.
The attack was precise: the main exploiter withdrew $48.6 million by using a swap amount of 244,080,034,447,359,999,999. Additional $6.5 million was stolen by mimicked bots. A total of 2,367 liquidity providers lost funds, with overall losses hitting $56.2 million. KyberSwap recovered $5.7 million from front-running bots and $706,000 from locked assets, but this covered less than 12% of total losses.
After the exploit, the platform issued warnings via CoinGecko, urging users to withdraw funds immediately. Community sentiment shifted from praise to fear. Twitter followers dropped from 296,655 to under 150,000. Security experts now question whether the platform's technical complexity makes it inherently vulnerable.
KyberSwap Elastic vs Uniswap V3
| Feature | KyberSwap Elastic | Uniswap V3 |
|---|---|---|
| Blockchain Support | Multi-chain (Polygon, Ethereum, BSC, Avalanche, Fantom, Arbitrum, Optimism) | Ethereum only |
| Fee Tiers | Five tiers: 0.008% to 1% | Four tiers: 0.01% to 1% |
| Security Record | Major exploit in November 2023 ($56M loss) | No major exploits to date |
| Liquidity Management | Concentrated liquidity with automated fee reinvestment | Concentrated liquidity (manual fee claiming) |
| Market Position | 48th percentile volume, 2nd percentile depth | Top 5 DEX by volume |
Should You Use KyberSwap Elastic in 2026?
As of February 2026, KyberSwap Elastic remains in recovery mode. The platform has implemented emergency protocols and is monitoring for vulnerabilities, but no public details about technical fixes exist. Security audits are ongoing, but results haven't been shared. For most users, the risks outweigh the benefits.
Here's what to consider:
- If you're a liquidity provider, the potential for impermanent loss and security risks makes this platform too dangerous. The Reinvestment Curve feature sounds great but can't compensate for lost funds.
- For traders, multi-chain aggregation is valuable. But with better security alternatives like SushiSwap or Curve Finance, there's little reason to take the risk.
- The platform's Alexa rank (#89563) and monthly pageviews (169k) show declining interest. This isn't a sign of a healthy project.
Until KyberSwap Elastic publishes a full audit report and proves it's fixed its vulnerabilities, it's safer to choose DEXs with proven track records. For Polygon-based trading, consider alternatives like QuickSwap or Trader Joe-they offer similar features without the security baggage.
Frequently Asked Questions
Is KyberSwap Elastic safe to use today?
No. Despite claims of security improvements, the platform has not published a comprehensive audit report since the November 2023 exploit. Experts confirm the underlying vulnerability in computeSwapStep() remains unaddressed. Using it now risks losing funds-especially as liquidity providers. For safe trading, stick to platforms like Uniswap V3 or SushiSwap.
How did the November 2023 exploit happen?
The exploit targeted the computeSwapStep() function, which calculates price boundaries during cross-tick operations. Due to rounding errors, attackers could manipulate liquidity accounting. The main exploit used a precise swap amount of 244,080,034,447,359,999,999 to trigger the vulnerability. This allowed them to drain liquidity pools without detection until it was too late.
What's the difference between KyberSwap Elastic and KyberSwap Classic?
KyberSwap Classic (formerly KyberDMM) uses a traditional constant product AMM model with fixed liquidity. KyberSwap Elastic introduces concentrated liquidity pools where providers set custom price ranges. Elastic also has the Reinvestment Curve for automated fee compounding. Classic operates on Ethereum, while Elastic is Polygon-focused. However, Elastic's security issues have overshadowed these improvements.
Can I still earn rewards on KyberSwap Elastic?
Technically yes, but it's extremely risky. The Reinvestment Curve automatically compounds fees, but liquidity providers face high chances of losing funds due to ongoing security vulnerabilities. The platform's recovery efforts haven't restored trust, and community members report frequent issues with withdrawals. Most experts advise against using it for any yield farming.
What are the best alternatives to KyberSwap Elastic?
For Polygon-based trading, QuickSwap and Trader Joe are top choices. Both offer concentrated liquidity, multi-chain support, and strong security records. QuickSwap has a $1.2 billion TVL and no major exploits. Trader Joe provides advanced features like leveraged trading. For Ethereum, Uniswap V3 remains the safest concentrated liquidity option. These platforms balance innovation with proven reliability.
James Harris
February 4, 2026 AT 21:26Hey everyone! Let's stay positive! There are great alternatives like QuickSwap and Trader Joe. Let's support those! 🌟
Sharon Lois
February 6, 2026 AT 08:56CIA did this. 💁♀️
aryan danial
February 6, 2026 AT 09:24The fundamental issue with KyberSwap Elastic's architecture lies in its inability to properly handle cross-tick operations, a flaw that was exacerbated by the computeSwapStep() function's implementation, which, despite being audited, failed to account for edge cases in price boundary calculations, leading to catastrophic liquidity pool exploitation.
Kieren Hagan
February 7, 2026 AT 13:39Based on the available data, it is advisable to avoid KyberSwap Elastic until comprehensive security audits are published and verified. Alternative DEXs present more reliable options.
Deeksha Sharma
February 7, 2026 AT 18:07I think it's important to stay hopeful. Projects like this can learn from mistakes. Let's support them in rebuilding trust.
Shruti Sharma
February 9, 2026 AT 08:44omg this is so bad. they should have fixed it already. so many people lost money. like wtf.
Jordan Axtell
February 10, 2026 AT 08:39I feel so bad for the LPs who lost money. It's heartbreaking. They should have done better. This is why I don't use new DEXs.
Paul Jardetzky
February 12, 2026 AT 05:44Hey y'all! Let's keep it chill! 🤝 There are safer DEXs out there. Let's support them! 💪
Taybah Jacobs
February 13, 2026 AT 18:02It is imperative to consider the security implications of utilizing KyberSwap Elastic. The exploit in 2023 underscores significant vulnerabilities that warrant caution.
Udit Pandey
February 14, 2026 AT 07:47As an Indian, I find it shameful that such a critical security flaw was overlooked. This reflects poorly on the global tech community. We must hold them accountable.
Jesse Pasichnyk
February 15, 2026 AT 03:54This is why America needs to lead in crypto. We can't have this happening. Use US-based exchanges.
Mrs. Miller
February 15, 2026 AT 06:30'Oh, sure, let's just trust a platform that lost $56M. What could go wrong?' But seriously, alternatives like QuickSwap are better.
Jacque Istok
February 17, 2026 AT 00:11The security risks are real, but the multi-chain support is still useful. Just be cautious. And maybe check out SushiSwap for safer options.
mahikshith reddy
February 18, 2026 AT 09:48This is why you don't trust crypto. Total scam. KyberSwap is dead. Move on.
Brittany Novak
February 19, 2026 AT 12:50The exploit was orchestrated by the government to kill crypto. Trust me, I know.
Brendan Conway
February 20, 2026 AT 14:52Hmm, this whole thing is reely messed up. The security flaw was prety bad, but maybe they can fix it. Not sure tho. Just seems like too much risk for now.