Kannagi Finance, a revenue aggregator protocol built on zkSync Era, has reportedly rugpulled, resulting in significant losses for users and a sharp decline in the price of its native token, KANA.
The rugpull incident has led to the deletion or inaccessibility of the protocol’s social media channels, including its official website. The total value locked (TVL) has plummeted from $2.13 million to near zero, resulting in losses exceeding $2 million for users.
TVL Plunges to Near Zero
Kannagi Finance underwent an audit by SolidProof, an audit agency associated with Germany-based Make Network, on June 6. However, the protocol’s smart contract code remained closed-source and unverified.
Wu Blockchain reported, “The zkSync Era revenue aggregator protocol Kannagi Finance has RugPulled, and its official website has expired. The TVL of Kannagi Finance was $2.13 million yesterday, and the current TVL has almost returned to zero, so the estimated user loss is $2.13m. The Kannagi Finance contract code is not open source verified.”
In response to the incident, SolidProof has released a statement acknowledging the situation and expressing their commitment to thoroughly investigating it. However, they clarified that they did not audit the Vault contracts implicated in the reported incident.
The price of Kannagi Finance’s native token, KANA, has dropped by 99% in the aftermath of the rugpull.
Frequently Asked Questions (FAQ)
What is Kannagi Finance?
Kannagi Finance is a revenue aggregator protocol built on zkSync Era.
What is a rugpull?
A rugpull is a deceptive practice, typically in the cryptocurrency space, where project developers abruptly exit and drain liquidity from a project, causing investors and users to suffer financial losses.
What is zkSync Era?
zkSync Era is a blockchain protocol that focuses on enabling scalable and secure decentralized applications and transactions.
What is TVL?
TVL stands for Total Value Locked and refers to the total amount of assets locked or invested in a particular decentralized finance (DeFi) protocol.
Who audited Kannagi Finance?
Kannagi Finance was audited by SolidProof, an audit agency associated with Germany-based Make Network.
Kannagi Finance, a revenue aggregator protocol on zkSync Era, has rugpulled, resulting in losses exceeding $2 million for users. The protocol’s social media channels have been deleted or made inaccessible, and its native token, KANA, has experienced a sharp decline. The audit of Kannagi Finance’s smart contract code remained closed-source and unverified, prompting concerns about transparency and security. SolidProof, the agency that conducted the audit, is investigating the situation and working to resolve the issue promptly.