[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Dablendo [@Dablendo01](/creator/twitter/Dablendo01) on x 2121 followers Created: 2025-07-21 15:15:21 UTC When a proxy exploit hit @KintoXYZ, attackers minted unlimited $K tokens, draining over $XXX million in #liquidity from Uniswap and Morpho pools. But rather than fold, the Kinto team is launching the Phoenix Facility on WildcatFi to raise a credit line, restore liquidity, repay affected users, and complete their comeback 🌱 . ⚙️ What Happened: The Proxy Exploit Explained Built on @arbitrum with a proxy-enabled upgradeable token design, Kinto’s code relied on an ERC1967 proxy. A hidden vulnerability in this pattern allowed attackers to upgrade the token logic contract themselves, then mint XXXXXXX $K instantly, draining key liquidity pools. Within hours, $K plummeted ~90% . 🛠️ The Phoenix Facility Mechanics To recover from the collapse, Kinto is utilizing WildcatFi’s credit lines: X. Raise on-chain credit collateral-backed by new $K issuance X. Deploy funds to restore liquidity in Uniswap and Morpho vaults X. Repay exploit victims to the pre-event state X. Reignite protocol activity and move to relaunch $K token v2 This approach avoids needing external fundraising, it's community-driven, using onchain credit to bootstrap recovery. 🛡️ Why This Framework Works 🔹Onchain transparency: Credit lines are provable, public, and auditable 🔹Zero trust capital: Funds are tied to collateral and smart contract logic, not offchain promises 🔹Alignment with #OnChain principles: Every transaction is recorded, verifiable, and permissionless 🔹Speed of execution: WildcatFi enables faster capital deployment than patchy offchain efforts 🧭 What’s Next for Kinto Phoenix Facility now full, credit partners have joined and funds are secured Repayment mapping is underway, with victims to receive balanced restitution Uniswap and Morpho liquidity is being restored to restart trading flow $K v2 launch is planned once liquidity and user confidence is stabilized, likely with revamped proxy and audit protections 🚀 Final Take: A Blueprint for Onchain Crisis Recovery 🔹Kinto’s approach is a model for onchain recuperation: 🔹Upside credit instead of token inflation or VC rescue 🔹Full transparency into governance, distribution, and repayment 🔹Reliance on smart contracts, no offchain IOUs If executed successfully, the Phoenix Facility could serve as a real-world blueprint for permissionless, automated recovery in permissionless finance. This isn’t just a bailout. It’s a technical and financial innovation in how DeFi can self-heal, without central authority.  XXX engagements  **Related Topics** [happened](/topic/happened) [comeback](/topic/comeback) [uniswap](/topic/uniswap) [kintoxyz](/topic/kintoxyz) [kellanova](/topic/kellanova) [stocks consumer defensive](/topic/stocks-consumer-defensive) [Post Link](https://x.com/Dablendo01/status/1947314462958219483)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Dablendo @Dablendo01 on x 2121 followers
Created: 2025-07-21 15:15:21 UTC
When a proxy exploit hit @KintoXYZ, attackers minted unlimited $K tokens, draining over $XXX million in #liquidity from Uniswap and Morpho pools.
But rather than fold, the Kinto team is launching the Phoenix Facility on WildcatFi to raise a credit line, restore liquidity, repay affected users, and complete their comeback 🌱 .
⚙️ What Happened: The Proxy Exploit Explained
Built on @arbitrum with a proxy-enabled upgradeable token design, Kinto’s code relied on an ERC1967 proxy.
A hidden vulnerability in this pattern allowed attackers to upgrade the token logic contract themselves, then mint XXXXXXX $K instantly, draining key liquidity pools. Within hours, $K plummeted ~90% .
🛠️ The Phoenix Facility Mechanics
To recover from the collapse, Kinto is utilizing WildcatFi’s credit lines:
X. Raise on-chain credit collateral-backed by new $K issuance
X. Deploy funds to restore liquidity in Uniswap and Morpho vaults
X. Repay exploit victims to the pre-event state
X. Reignite protocol activity and move to relaunch $K token v2
This approach avoids needing external fundraising, it's community-driven, using onchain credit to bootstrap recovery.
🛡️ Why This Framework Works
🔹Onchain transparency: Credit lines are provable, public, and auditable
🔹Zero trust capital: Funds are tied to collateral and smart contract logic, not offchain promises
🔹Alignment with #OnChain principles: Every transaction is recorded, verifiable, and permissionless
🔹Speed of execution: WildcatFi enables faster capital deployment than patchy offchain efforts
🧭 What’s Next for Kinto
Phoenix Facility now full, credit partners have joined and funds are secured
Repayment mapping is underway, with victims to receive balanced restitution
Uniswap and Morpho liquidity is being restored to restart trading flow
$K v2 launch is planned once liquidity and user confidence is stabilized, likely with revamped proxy and audit protections
🚀 Final Take: A Blueprint for Onchain Crisis Recovery
🔹Kinto’s approach is a model for onchain recuperation:
🔹Upside credit instead of token inflation or VC rescue
🔹Full transparency into governance, distribution, and repayment
🔹Reliance on smart contracts, no offchain IOUs
If executed successfully, the Phoenix Facility could serve as a real-world blueprint for permissionless, automated recovery in permissionless finance.
This isn’t just a bailout. It’s a technical and financial innovation in how DeFi can self-heal, without central authority.
XXX engagements
Related Topics happened comeback uniswap kintoxyz kellanova stocks consumer defensive