{"id":3621,"date":"2021-05-20T12:26:48","date_gmt":"2021-05-20T11:26:48","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3621"},"modified":"2021-05-20T12:28:24","modified_gmt":"2021-05-20T11:28:24","slug":"two-more-binance-smart-chain-projects-report-incidents-prices-plummet","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/two-more-binance-smart-chain-projects-report-incidents-prices-plummet\/","title":{"rendered":"Two More Binance Smart Chain Projects Report Incidents, Prices Plummet"},"content":{"rendered":"\n
Binance Smart Chain<\/a> (BSC), ran by the crypto exchange giant\u00a0Binance<\/strong>, has landed in hot water due to the incidents suffered by its projects – yet again. Yesterday it was\u00a0Venus Protocol<\/strong>\u00a0(XVS), and today\u00a0Pancake Bunny<\/strong>\u00a0(BUNNY).<\/h5>\n\n\n\n
\"Two<\/figure>\n\n\n\n

Venus is a project\u00a0built\u00a0by Binance, while\u00a0Binance Labs<\/strong>\u00a0backed\u00a0MOUND<\/strong>, the team behind yield platform Pancake Bunny – both built on BSC.<\/p>\n\n\n\n

On May 19, Venus released an incident report,\u00a0describing\u00a0what they called “a large string of market liquidations in the XVS market.” As more liquidations occur, they explained “the price goes lower, thus looping this event, until it reaches a bottom where there is nothing more to liquidate.”<\/p>\n\n\n\n

At one point on May 18, XVS price jumped from USD 78.3 to USD 139.8, after which it dropped to USD 43.2 by the next day.<\/p>\n\n\n\n

No funds were lost, the team said. “While there is a negative balance due to the fast drop in price and liquidators taking full advantage of the situation, Venus will deploy its grant program and utilize XVS to cover the system shortfall.”<\/p>\n\n\n\n

“The system worked as intended and liquidators did their jobs,” argued Venus Protocol founder, Joselito Lizarondo, urging people not to over-borrow and to “pay attention to market conditions and volatile swings to ensure your positions don\u2019t get liquidated with fees.”<\/p>\n\n\n\n

Per\u00a0journalist ‘Wu Blockchain', Venus had similar loopholes before, while research analyst at\u00a0The Block<\/strong>, Igor Igamberdiev,\u00a0wrote\u00a0that the manipulation of XVS price “resulted in USD 200M+ DeFi liquidations and a USD 100M+ of protocol bad debt,” potentially created by two separate exploiters.<\/p>\n\n\n\n

“These funds here were lost not by those who were supposed to become liquidation\u2019 victims but by ordinary protocol users who deposit money in it,” Igamberdiev said. “Until Venus finds a way to get rid of the bad debt, the protocol is undercollateralized, and the bank run will be challenging.”<\/p>\n\n\n\n

Today,\u00a0PancakeBunny Finance<\/strong>\u00a0reported\u00a0that they suffered an economic exploit that attacked the price of BUNNY using\u00a0flash loans, causing the price to plummet.<\/p>\n\n\n\n

The price saw a sudden plunge from USD 150.9 to USD 11.8, per CoinGecko.<\/p>\n\n\n\n

The hacker\u00a0used\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>\u00a0decentralized exchange\u00a0PancakeSwap<\/strong>\u00a0to borrow a huge amount of\u00a0Binance coin (BNB), then manipulated the price of\u00a0USDT\/BNB as well as BUNNY\/BNB, getting “a huge amount” of BUNNY through this flash loan, after which they dumped all of it in the market, and paid back the BNB through PancakeSwap, the team\u00a0said.<\/p>\n\n\n\n

They\u00a0stressed<\/use><\/svg><\/span><\/a>\u00a0that none of the vaults have been breached, and that there are reports with “an inaccurate amount of losses.”<\/p>\n\n\n\n

Some, including Igamberdiev,\u00a0argued<\/use><\/svg><\/span><\/a>\u00a0the loss to be more than USD 40m.<\/p>\n\n\n\n

The developers are working to enable the currently frozen withdrawals, they said, being in the process of testing, which they expect should be completed in a matter of hours.<\/p>\n\n\n\n

The team also said that they are working on a reimbursement plan. “Transactions cannot be reverted, but the BUNNY team is working on a plan to reimburse lost value,” they\u00a0said.<\/p>\n\n\n\n

At 7:35 UTC, BUNNY is trading at USD 34.26, after it dropped 80% in a day and 88% in a week. Its market capitalization is USD 17.5m, and total value locked (TVL) in it is USD 1.3bn.<\/p>\n\n\n\n

Venus is changing hands at USD 52.5, after it fell 12% in a day and 56% in a week. Its market capitalization is USD 528m, and TVL USD 4.2bn.<\/p>\n\n\n\n

Quality concerns<\/h2>\n\n\n\n

This is not the first (or the second) time that a BSC-based projects experienced issues, causing the Cryptoverse members to question the overall quality of BSC-related projects and teams behind them.<\/p>\n\n\n\n

Industry observers are\u00a0suggesting\u00a0that it became all too common for projects on BSC to be either\u00a0rug\u00a0or exploited by hackers.<\/p>\n\n\n\n

In late April, for example,\u00a0Uranium Finance<\/strong>\u00a0suffered\u00a0a security breach, seeing millions of dollars in\u00a0ethereum (ETH)\u00a0on the move and laundered through a popular privacy tool.<\/p>\n\n\n\n

Since its launch in September 2020, BSC has been\u00a0observed\u00a0as a potential competitor to Ethereum, and a number of projects, including some decentralized finance (DeFi) ones, have\u00a0expanded\u00a0to BSC or migrated to it from Ethereum, citing high fees as a reason.<\/p>\n\n\n\n

That said, BSC now seems to be increasingly gaining negative attention due to some of its projects facing issues.<\/p>\n\n\n\n

Popular crypto analyst Hasu\u00a0described\u00a0this as an “expensive day for BSC projects,” adding that “maybe copy-paste isn't everything,” suggesting, like many others, that these are low-quality projects.<\/p>\n","protected":false},"excerpt":{"rendered":"

Binance Smart Chain (BSC), ran by the crypto exchange giant\u00a0Binance, has landed in hot water due to the incidents suffered by its projects – yet again. Yesterday it was\u00a0Venus Protocol\u00a0(XVS), and today\u00a0Pancake Bunny\u00a0(BUNNY). Venus is a project\u00a0built\u00a0by Binance, while\u00a0Binance Labs\u00a0backed\u00a0MOUND, the team behind yield platform Pancake Bunny – both built on BSC. On May 19, […]<\/p>\n","protected":false},"author":63,"featured_media":3622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,81,83],"tags":[326,328,327],"class_list":["post-3621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-altcoin-news","category-bitcoin-news","tag-binance","tag-chain","tag-project"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/05\/knipsdesign-Binance-Coin.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=3621"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3622"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}