Venus Protocol, a lending platform on the BNB chain, responded to the rumors stating that the DeFi protocol has been exploited by confirming that one of its price feed oracles has been impacted. They claimed that the issue had been fixed, but as a precautionary measure, the snBNB market, along with two other markets, has been temporarily paused. SlowMist, a Blockchain security firm, has posted on X about Venus Protocol’s possible exploit.
Reports started coming in on December 10 about a malfunctioning price oracle for liquid-staked BNB on Venus Protocol. It responded to the issue by assuring its customers that it was an isolated incident and there was no issue with the Venus Core Pool or the native token. Venus Protocol ambassador said,
It appears to be an Oracle price issue, occurring in a small Isolated Market, and issue is being investigated by the Venus, BinanceOracle and snBNB/Helio Teams. Venus Core Pool and other Pools are completely separate from each other and are not affected by this.
Head of Venus Labs, Brad Harrison, said that the Binance Oracle, which supported the asset of snBNB in the isolated pool, reported a wrong price, which resulted in about $270,000 of borrows. Furthermore, he reported that this was the only reported issue and that there were no issues with the core pool.
After solving the issue, Venus Protocol assured that the price is back to normal, Core Pool and other markets remain unaffected, and that the funds are SAFU. Furthermore, they temporarily paused the snBNB, along with agEUR, and stkBNB isolated markets with similar Binance Oracle configurations due to caution and following the recommendations of chaos labs.
They said that the Venus community will issue a proposal to inject liquidity from the treasury into the affected pool, totaling around $274K, while funds from the pool are received with the support of partners. The price of XVS, Venus Protocol’s native token, dipped over 11.5% to $9.55 following the hack report.
