An Error on Binance Oracle Leads to False Reports of Venus Protocol Hack
An error on the Binance Oracle application has caused false reports of a hack on Venus Protocol. This led to an 11.5% drop in the price of XVS, the native token of Venus Protocol. Brad Harrison, Head of Venus Labs, clarified that the reports were inaccurate. Binance Oracle, a decentralized app that helps smart contracts access external data, reported a wrong price, resulting in about $200,000 borrowed.
Some facts:
Binance Oracle, which supports the asset of snBNB in the *isolated* pool reported a wrong price resulting in about $200k of borrows. This is the only reported issue.
This user is associated with a Binance account.
There’s no issue with the core pool or otherwise.
— Brad 🫀/acc (@bradherenow) December 10, 2023
Harrison emphasized that no other pools were affected and mentioned that the Venus team will enhance security on isolated pools by adding support for price resilience. This clarification followed allegations from blockchain security firm Slow Mist that Venus Protocol had been exploited. However, Slow Mist later acknowledged there was no exploit and reposted a public statement from Venus Protocol.
“Venus community will issue a proposal today to immediately inject liquidity from the treasury to the affected pool totaling around $274,000 while funds from the pool are recovered with the support of partners.”
– Venus Protocol
As a result of the incident, XVS experienced a significant decline, falling to $9.46. The Venus Protocol team assured users that the issue has been resolved by the Binance Oracle team. Venus Protocol is a decentralized finance platform on the BNB Chain that enables borrowing, lending, and swapping of cryptocurrencies.
Hot Take: False Reports of Hack Cause Price Drop for Venus Protocol’s XVS Token
An error on the Binance Oracle application led to false reports of a hack on Venus Protocol, resulting in an 11.5% decrease in the price of XVS. Brad Harrison, Head of Venus Labs, clarified that the reports were inaccurate and explained that Binance Oracle reported a wrong price, leading to borrowed funds of about $200,000. The Venus team assured users that no other pools were affected and announced plans to enhance security on isolated pools. Following allegations from Slow Mist of an exploit, it was later confirmed that there was no exploit. The Venus Protocol team addressed the issue by temporarily pausing certain markets and injecting liquidity from the treasury. Despite the incident, XVS is expected to recover as the Binance Oracle team has fixed the issue.
Noah Rypton stands as an enigmatic fusion of crypto analyst, relentless researcher, and editorial virtuoso, illuminating the uncharted corridors of cryptocurrency. His odyssey through the crypto realms reveals intricate tapestries of digital assets, resonating harmoniously with seekers of all stripes. Noah’s ability to unfurl the labyrinthine nuances of crypto intricacies is elegantly interwoven with his editorial finesse, transmuting complexity into an engaging symphony of comprehension.