Major Liquidation of Infamous Wallet Protects BNB Prices
An infamous wallet that borrowed over $150 million worth of stablecoins from Venus Protocol was liquidated for $30 million as BNB prices fell. The BNB Chain developer team manually liquidated over 6.89 million vBNB tokens, safeguarding BNB prices from sudden crashes. This is the second major liquidation in under a week.
Key Points:
– Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to loss of initial margin.
– $60 million worth of the exploiter’s loan was liquidated in a similar event last week.
– Venus, which runs on the BNB Chain network, holds over $620 million worth of tokens, with $480 million borrowed by users.
– The BNB Chain exploiter borrowed $150 million worth of stablecoins using bnb tokens stolen through an attack on a bridge.
– Venus and BNB Chain are working together to prevent the liquidation, as it could cause damage to the market and the decentralized finance ecosystem built on BNB Chain.
Hot Take:
The liquidation of the infamous wallet is a proactive measure to prevent a potential collapse in BNB prices and protect the stability of the market. By working together, Venus and BNB Chain aim to mitigate risks and ensure the safety of users and the BNB token.
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