Venus Protocol Liquidates Wallet Connected to Bridge Hack
Venus Protocol, a decentralized lending platform operating within the BNB Chain ecosystem, has liquidated a wallet connected to last year’s bridge hack. The protocol liquidated over $30 million in tokens across two transactions. The BNB Bridge exploiter account was made healthy without any resulting shortfall or further impact to BNB.
Key Points:
- The hacker stole large amounts of cryptocurrency assets on the BNB Chain bridge.
- The hacker deposited BNB tokens on the Venus lending protocol to borrow $150 million worth of stablecoins.
- The loan position using collateral of 900,000 BNB had remained untouched since the hack.
- The tumbling crypto prices reduced the health rate of the overcollaterized loan position.
- The Venus team carried out manual liquidations to prevent auto-liquidation and large sell-offs on the market.
Last year’s exploit involved a calculated manipulation of security proofs by the attacker, who took advantage of a vulnerability in the BNB Chain’s bridge. The attacker minted 2 million BNB tokens worth $560 million at the time of the exploit.
Hot Take:
The liquidation of the wallet connected to the bridge hack by Venus Protocol showcases the proactive measures taken by the protocol and the BNB Chain team to address security vulnerabilities and protect users. The successful liquidation without any negative impact to BNB is a positive development for the ecosystem.
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