Kyokoans, we’re releasing this announcement to inform the community that we have temporarily paused the fixed interest rate model on our P2P NFT lending protocol. This was a proactive measure taken to ensure the protocol and user funds remain secure. No protocol assets have been affected.
Earlier today, AAVE announced that they had received a critical bug report related to its fixed rate lending model. While AAVE has decided against disclosing specific details of the bug to protect protocols that currently employ its lending model, it has disabled its fixed rate model to counter potential exploitation and protect user funds.
Read the announcement here: https://governance.aave.com/t/aave-v2-v3-security-incident-04-11-2023/15335
Kyoko’s P2P NFT lending protocol was partially designed using the same fixed rate lending model employed by AAVE. Therefore, our dev team took immediate measures to suspend Kyoko’s fixed rate lending model operations until additional details regarding the exploitation risk have been released and contract vulnerabilities have been resolved. We will monitor the situation closely and will resume operations once it is secure to do so.
Stay safe out there, Kyokoans. With any questions about this announcement, please reach out to us in the official Kyoko Discord.
Kyoko addresses the most challenging issues in Web3. Kyoko’s cross-chain asset lending platform solves the persistent issues limiting the GameFi market, including the rising cost of entry and siloed in-game assets across different blockchains. Kyoko’s P2P NFT lending platform expands inclusivity and access to liquidity for NFT projects and holders through its decentralized fixed-rate NFT lending protocol. The $KYOKO token launched in April 2022.
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