Venus Protocol Loses $11 Million As A Result Of the LUNA Price Oracle Being Suspended by Chainlink

Venus Protocol Loses $11 Million As A Result Of the LUNA Price Oracle Being Suspended by Chainlink

The Venus protocol has been added to the growing list of those affected by the Terra ecosystem’s collapse this week.

The decrease in LUNA token prices has had a significant impact on the Venus Protocol. On May 13, the DeFi platform said that a price discrepancy on the platform had resulted in a multi-million dollar loss due to an exploit. Venus is a BNB Chain-based decentralized algorithmic money market protocol.

The protocol gets its price feeds from Chainlink oracles, which is where the issues started. Due to the LUNA token’s severe market conditions, Chainlink has paused the price feed.

The LUNA price on Venus was last reported at around $0.107, however the market price at the time was closer to $0.01. “In order to de-risk this situation, the protocol was paused using PauseGuardian via multisig,” it said.

According to Venus, an investigation revealed two major deposits of LUNA at the incorrect price, which were utilized to borrow assets on the platform.

“Upon this desyncing event, it was discovered that 2 accounts had suspiciously deposited a sum of 230,000,000 LUNA valued at over $24,000,000. Assets were borrowed totaling around $13,500,000.”

Chainlink’s suspension of LUNA pricing updates cost the protocol $11.2 million, according to industry analyst Colin Wu.

Venus halted the protocol and said that it had a “Risk Fund” that would be used to make up for the shortfall caused by the incident.

It also stated that a proposal to restart the system had been submitted, and that it will begin operations in 48 hours. It stated that all liquidity is still held inside the protocol and that no liquidations will take place during this time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Hazel

CoinCu News

Venus Protocol Loses $11 Million As A Result Of the LUNA Price Oracle Being Suspended by Chainlink

Venus Protocol Loses $11 Million As A Result Of the LUNA Price Oracle Being Suspended by Chainlink

The Venus protocol has been added to the growing list of those affected by the Terra ecosystem’s collapse this week.

The decrease in LUNA token prices has had a significant impact on the Venus Protocol. On May 13, the DeFi platform said that a price discrepancy on the platform had resulted in a multi-million dollar loss due to an exploit. Venus is a BNB Chain-based decentralized algorithmic money market protocol.

The protocol gets its price feeds from Chainlink oracles, which is where the issues started. Due to the LUNA token’s severe market conditions, Chainlink has paused the price feed.

The LUNA price on Venus was last reported at around $0.107, however the market price at the time was closer to $0.01. “In order to de-risk this situation, the protocol was paused using PauseGuardian via multisig,” it said.

According to Venus, an investigation revealed two major deposits of LUNA at the incorrect price, which were utilized to borrow assets on the platform.

“Upon this desyncing event, it was discovered that 2 accounts had suspiciously deposited a sum of 230,000,000 LUNA valued at over $24,000,000. Assets were borrowed totaling around $13,500,000.”

Chainlink’s suspension of LUNA pricing updates cost the protocol $11.2 million, according to industry analyst Colin Wu.

Venus halted the protocol and said that it had a “Risk Fund” that would be used to make up for the shortfall caused by the incident.

It also stated that a proposal to restart the system had been submitted, and that it will begin operations in 48 hours. It stated that all liquidity is still held inside the protocol and that no liquidations will take place during this time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News

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