Venus Protocol Denies Major Hack Claims on BNB Chain - Latest cryptocurrency news

Venus Protocol Denies Major Hack Claims on BNB Chain

Venus Protocol, a decentralized lending market developed on the BNB Chain, quickly refuted claims of a significant loss related to an alleged major hack that took place over the weekend. The protocol’s team addressed the concerns circulating on social media and debunked the reported $54 billion hack, clarifying the true nature of the event.

In response to the incident initially perceived as a major hack, Venus Protocol announced that the platform was functioning as intended. The supposed $54 billion hack was revealed to be a short-lived price inconsistency triggered by the Binance Oracle, which was responsible for price feeds in an isolated pool.

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Brad Harrison, President of Venus Labs, made a statement regarding the matter, noting that an issue with the oracle supporting the price of snBNB inadvertently led to the borrowing of assets worth $270,000.

Although the protocol had implemented an oracle to manage such situations, the incident highlighted challenges associated with long-term focused assets that lack multiple price feeds. Acknowledging the need for continuous improvement, Harrison said, “In this case, we look forward to enhancing security in isolated pools by adding support for price elasticity.”

Displaying a proactive stance, Venus Protocol temporarily suspended the snBNB market and two other isolated markets with similar Binance Oracle configurations. This move was designed to prevent further complications and ensure the integrity of the platform. The protocol team emphasized that the temporary suspension was a precautionary measure and noted that other pools were not affected.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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