Venus Protocol Liquidates Wallet Connected to Bridge Hack
Venus Protocol, a decentralized lending platform within the BNB Chain ecosystem, has successfully liquidated a wallet linked to a bridge hack that occurred last year. The protocol liquidated over $30 million in tokens through two transactions. This comes after the attacker stole a substantial amount of cryptocurrency assets on the BNB Chain bridge and used the Venus lending protocol to borrow $150 million worth of stablecoins. The loan position, which used collateral of 900,000 BNB, had remained untouched since the hack until now. However, the tumbling crypto prices over the past year had put the loan position at risk of liquidation. The Venus team, along with the BNB Chain core team, carried out manual liquidations to prevent a large amount of BNB from being automatically sold on the market.
Key Points:
– Venus Protocol has liquidated a wallet connected to last year’s bridge hack, totaling over $30 million in tokens.
– The hacker used the stolen cryptocurrency assets to borrow $150 million worth of stablecoins.
– The loan position, secured by 900,000 BNB, was at risk of liquidation due to the decline in crypto prices.
– The Venus team and the BNB Chain core team collaborated to manually liquidate the assets and prevent a large sale on the market.
– The attacker exploited a vulnerability related to the “iavl hash check” within the BNB Chain bridge to mint 2 million BNB tokens valued at $560 million.
Hot Take:
The successful liquidation of the wallet connected to the bridge hack is a significant victory for Venus Protocol and the BNB Chain ecosystem. It demonstrates their commitment to addressing security vulnerabilities and safeguarding user assets. By taking proactive measures to prevent auto-liquidation, they were able to minimize the market impact and protect the value of BNB. This incident serves as a reminder of the ongoing need for robust security measures in the crypto industry.
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