In a high-stakes development, all eyes are on Venus Protocol, the decentralized lending platform operating within the BNB Chain ecosystem. The platform finds itself on the brink of liquidation due to a substantial Binance Coin (BNB) position that hangs precariously close to the edge, raising concerns within the cryptocurrency community.
The dramatic twist involves an entity responsible for orchestrating a massive hack on the BNB Chain in October of last year. This audacious attack resulted in an estimated loss of $120 to $150 million in cryptocurrency assets, leaving the entire community stunned.
Exploiting the stolen BNB, the attacker astutely leveraged Venus Protocol to secure a staggering $150 million worth of stablecoins. This strategic move was made possible by utilizing a sizable position of 900,000 BNB, valued at approximately $210 million. This position has remained intact since the initial breach, defying expectations as the crypto market endured a tumultuous ride.
Unfortunately, the recent nosedive in cryptocurrency prices has taken its toll on this audacious loan position. The health rate of the situation currently hovers precariously around 1.03, inching ever closer to its liquidation point.
With BNB’s price teetering at $220, a mere drop from its current rate of $231, the liquidation process could be triggered. To counteract this imminent danger, the BNB Chain core team has made an unwavering declaration via a tweet, vowing to assume control of the position if it reaches the liquidation threshold.
A proposal was swiftly passed in November to uphold the market’s integrity and minimize stakeholder impact. This resolution ensured that only the core team would possess the necessary permissions to liquidate the position, providing an adequate safeguard against potential havoc.
Today, the core team has taken significant strides toward fulfilling this responsibility. Analysts at Scope Protocol, backed by Venus themselves, have confirmed that the developers transferred $30 million worth of USDT from Binance to the allowed wallet designated for liquidating the position.
Venus emphasized on Twitter, “The allowed wallet was initially funded with $30 million in USDT with the assurance of preventing shortfall on Venus and providing additional support through this Venus governance approved mechanism.”
In a display of resilience, the BNB Chain team swiftly halted the blockchain, issuing a directive for all validators to cease operations. This decisive action aimed to hinder the attacker’s progress and salvage any remaining funds that had not yet been transferred to other chains.
As the crypto world braces for a potentially game-changing outcome, the fate of Venus Protocol hangs in the balance. Will the BNB Chain core team rescue the hacked funds and avert further disruption? Only time will reveal the unfolding narrative, leaving the community on tenterhooks as they await the resolution of this gripping saga.
