🧵Analysis & Thoughts: User's $2M Loss in USDC De-Pegging Crisis Raises Questions About KyberNetwork's Responsibility.
1/6 In the wake of the recent #USDC de-pegging crisis, a user named CHIA reportedly lost $2 million while converting 3Crv to USDT through @KyberSwap. While @KyberNetwork issued a lengthy statement on Twitter absolving themselves of any blame, an analysis of the situation suggests… twitter.com/i/web/status/1…
2/6 The root of the issue seems to lie in Kyber Network's inability to enforce the user's 0.5% slippage limit and revert the trade accordingly. CHIA has stated in the Kyber Network Telegram group that they had set the slippage to 0.5%, and the input data of the transaction… twitter.com/i/web/status/1… 
3/6 If there are any doubts, anyone can refer to the execution.clientData field of the input data of this transaction.
4/6 Kyber Network functions as a meta-aggregator that aggregates other aggregator protocols. It directs the user's swap requests to the appropriate aggregator protocols and provides them with options. However, Kyber Network reported that only one of the four aggregators,… twitter.com/i/web/status/1…
5/6 After carefully considering the available information, we think the protocol may have experienced a bug, causing it to deviate from the user's recorded input on the blockchain.
6/6 This incident highlights the importance of three critical factors. First, the protocol must be capable of managing slippage settings specified by the user. Secondly, it should have a heightened awareness of real-time liquidity levels. Finally, the market needs to offer users… twitter.com/i/web/status/1…
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