{"id":51874,"date":"2023-06-12T09:16:26","date_gmt":"2023-06-12T13:16:26","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=51874"},"modified":"2023-06-12T09:18:27","modified_gmt":"2023-06-12T13:18:27","slug":"venus-protocol-eyes-bnb-liquidation-as-price-drops","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/venus-protocol-eyes-bnb-liquidation-as-price-drops\/","title":{"rendered":"Venus Protocol Eyes BNB Liquidation as Price Drops"},"content":{"rendered":"\n

Venus Protocol, a decentralized lending platform on Binance Smart Chain<\/a>, has announced its readiness to liquidate a large BNB position belonging to a hacker potentially.<\/p>\n\n\n\n

\"Venus<\/figure>\n\n\n\n

The protocol said that if the BNB <\/a>falls below $220, the Binance Chain core team will take over the position without affecting the protocol or its users.<\/p>\n\n\n\n

The hacker's BNB position dates back to October 2021, when an entity exploited a vulnerability in the Binance Chain cross-chain bridge and stole an estimated $120 to $150 million worth of crypto assets, including 900,000 BNB (worth about $210 million at the time)<\/strong>.<\/p>\n\n\n\n

The hacker then used the stolen BNB to borrow $150 million<\/strong> in stablecoins from Venus Protocol. This DeFi platform allows users to lend and borrow crypto assets and earn interest.<\/p>\n\n\n\n

Since then, the hacker's position has remained open on Venus Protocol, but its health factor has deteriorated due to the declining BNB price. <\/p>\n\n\n\n

The health factor measures the liquidation risk of a position by dividing the collateral by the debt. Anyone can liquidate a position with a health factor below 1 by repaying the debt and getting some collateral.<\/p>\n\n\n\n

PeckShield, a blockchain security firm, reported that the hacker\u2019s position had a health factor\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> of around 1.03, which put it at risk of liquidation if the BNB price dropped below $220.<\/p>\n\n\n\n

\n

#PeckShieldAlert<\/use><\/svg><\/span><\/a> ~$204.8M worth of $BNB<\/use><\/svg><\/span><\/a> faces liquidation if the price drops below -20% of its current value.
The BNBChain's Cross-Chain Bridge (0x489a) has deposited 920,000 BNB ($255,897,935) into @VenusProtocol<\/use><\/svg><\/span><\/a>, and their position is subject to liquidation at a price of ~$220\u2026 pic.twitter.com\/uCoanA5aId<\/use><\/svg><\/span><\/a><\/p>— PeckShieldAlert (@PeckShieldAlert) June 12, 2023<\/use><\/svg><\/span><\/a><\/blockquote>

At press time, BNB is trading at around $225<\/strong>, down by 25%<\/strong> since June 5, when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.<\/p>\n\n\n\n

Venus Protocol said on Twitter (and later deleted it) that it was ready for the hacker\u2019s possible liquidation.<\/p>\n\n\n\n

The protocol stated that the Binance Chain core team would take over the position as planned if the BNB price reached the liquidation threshold.<\/p>\n\n\n\n

The protocol also said that the liquidator address had set aside $30 million in USDT to repay the debt and that more funds were available if necessary. It assured its users that there would be no BNB dumps or gaps on Venus.<\/p>\n\n\n\n

Venus's statement was met with mixed reactions from the crypto community. Some praised the protocol's transparency and preparedness, while others questioned its credibility and security.<\/p>\n","protected":false},"excerpt":{"rendered":"

Venus Protocol, a decentralized lending platform on Binance Smart Chain, has announced its readiness to liquidate a large BNB position belonging to a hacker potentially. The protocol said that if the BNB falls below $220, the Binance Chain core team will take over the position without affecting the protocol or its users. The hacker’s BNB […]<\/p>\n","protected":false},"author":44,"featured_media":51884,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[326,12922,14830],"class_list":["post-51874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-binance","tag-bnb-network","tag-venus-protocol"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/Venus_BNBChain.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/51874","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\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=51874"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/51874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/51884"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=51874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=51874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=51874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}