Venus DeFi Protocol Reports Oracle Pricing Issue, Pledges to Replenish $270K Treasury
Summary:
Venus, a decentralized finance protocol, experienced an issue with its price feed oracle leading to borrows of approximately $270,000, although the incident was downplayed as not being an exploit. Venus assured users that funds are safe and the platform would replenish the treasury. Though the total value on the DeFi protocol seemed unaffected, Venus' native token, XVS, dropped 17.5%.
Venus, a decentralized finance protocol, has confirmed an issue with one of its price feed oracles, leading to borrows of approximately $270,000 on December 11. Although this has been downplayed by the platform as not being an "exploit" as analysts described, Venus has pledged to replenish the funds through their treasury. The glitch was reported in the Binance Chain-based decentralized lending and borrowing platform on December 10. A user by the name '@SaulCapital' highlighted the problem, saying that the "isolated pool on Venus Protocol for the liquid staked BNB was exploited”, and shared a link to a suspicious wallet address involved in the incident. By contrast, a representative from Venus Protocol, known as '@NoOneVII', responded that it seemed to be an "Oracle price issue, happening in a small isolated market" and reassured that this issue had not affected other pools or the security of the platform. The leader of Venus Labs, '@bradherenow', also verified that an incorrect price had been reported by Binance Oracle, causing about $200,000 of borrows. On December 11, Venus Protocol reassured its users that the price feed for $snBNB had returned to normal and that other markets were unaffected, with funds being safe. The platform also indicated that the Venus community would propose an infusion of liquidity from the treasury to the affected pool, estimated at $274K, while the funds in the pool are recovered with partners' assistance. As per Defillama, the total value locked on the DeFi protocol, initiated in 2020, seemed unaffected by this issue and was around $738 million at the time of reporting. However, the platform's native token, XVS, suffered a drop of 17.5% over the day to $9.56.
Published At
12/11/2023 8:14:09 AM
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