Venus Protocol Confirms Issue with Price Feed Oracle
The decentralized finance protocol Venus has acknowledged that it experienced an issue with one of its price feed oracles on December 11. However, the protocol has downplayed the incident as not being an “exploit” and has promised to replace the funds from its treasury.
Reports of Malfunctioning Price Oracle
On December 10, reports began to surface that Venus Protocol had been affected by a malfunctioning price oracle on the Binance Chain-based lending and borrowing marketplace.
Oracle Price Issue in Isolated Market
A user named ‘@SaulCapital’ alerted followers on Twitter about an “exploit” in the isolated pool on Venus Protocol for liquid staked BNB. However, Venus Protocol ambassador ‘@NoOneVII’ responded, stating that it appeared to be an oracle price issue occurring in a small isolated market. They assured users that there was no problem with security.
Wrong Price Reported by Binance Oracle
The head of Venus Labs confirmed that the Binance Oracle reported a wrong price, resulting in approximately $200,000 of borrows. However, they emphasized that there were no other issues with the core pool or other markets.
Resolution and Proposal from Venus Protocol
Venus Protocol announced that they would provide more details shortly and assured users that the snBNB price feed was back to normal and other markets were unaffected. They also stated that they would propose injecting liquidity from the treasury into the affected pool while recovering funds with partner support.
Total Value Locked Unaffected
The incident does not appear to have affected the total value locked on Venus Protocol, which stood at $738 million at the time of writing. However, the platform’s native token, XVS, experienced a 17.5% drop in value.
Hot Take: Venus Protocol Addresses Price Feed Oracle Issue
Venus Protocol has addressed the issue with its price feed oracle, assuring users that it was not an exploit and that funds would be replaced from the treasury. While the incident caused some borrows totaling around $270,000, it did not impact the core pool or other markets. Venus Protocol plans to inject liquidity into the affected pool and recover funds with partner support. The total value locked on the platform remains unaffected, but there has been a significant decrease in the value of its native token, XVS.
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