Venus Protocol plunges 12% following false report of hack attack

An error on the Binance Oracle application has led to false reports of Venus Protocol’s hack, resulting in an 11.5% drop of XVS price.

Brad Harrison, Head of Venus Labs, took to X on Dec. 10, 2023, to explain that reports of Venus Protocol‘s exploit are inaccurate as Binance Oracle, a decentralized app that helps smart contracts access data outside a blockchain, reported a wrong price “resulting in about $200,000 of borrows.”

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 noted that “no other pools were affected,” adding the Venus team will “look ahead to enhance the security on isolated pools by adding support for price resilience.” The statement came shortly after Slow Mist, a blockchain security firm, alleged in an X post that Venus Protocol had been exploited.

It seems @VenusProtocol has been exploited.

Please proceed with caution! pic.twitter.com/Ufxxk4IWTW

— SlowMist (@SlowMist_Team) December 10, 2023

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However, later the firm acknowledged there was no exploit, reposting a public statement from Venus Protocol. As noted by the Venus Protocol team in an X post, the snBNB market “has been temporarily paused” along with two other isolated markets, agEUR and stkBNB, which had “similar Binance Oracle configurations discovered on those feeds.”

“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

Amid the news, Venus Protocol’s native token XVS plunged by over 11.5%, falling down to $9.46, according to data from CoinGecko. The Venus Protocol team pointed out that the Binance Oracle team has already identified and “fixed the issue.”

Venus Protocol is a decentralized finance platform built on the BNB Chain (formerly Binance Smart Chain) that allows users to borrow, lend, and swap a variety of cryptocurrencies. It is similar to other protocols such as Aave and Compound, which were deployed on other blockchain networks.

Read more: BNB Chain’s cross-chain bridge exploit shakes crypto community

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