This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Venus Protocol, a decentralized finance (DeFi) platform on the Binance Chain, experienced a temporary glitch in one of its price feed oracles, resulting in borrowed funds totaling approximately $270,000. Despite initial concerns of an exploit, Venus clarified that it was not a security breach but rather a price oracle issue.
On December 10, reports surfaced about a malfunctioning price oracle affecting the Binance Chain-based lending and borrowing marketplace. However, Venus Protocol debunked claims of a $54 billion exploit and assured users that the platform was functioning as intended.
A Twitter user flagged an exploited isolated pool on Venus Protocol for liquid-staked BNB, but Venus Protocol clarified that it was an “Oracle price issue” isolated to a small market. The head of Venus Labs explained that a short-term price discrepancy occurred with the Binance Oracle responsible for price feeds in an isolated pool.
This erroneous price report led to approximately $200,000 in borrowed funds. Venus Protocol assured users that the snBNB price feed had returned to normal, with the core pool and other markets remaining unaffected. The team proposed injecting liquidity from the treasury into the affected pool, totaling around $274,000, while working with partners to recover funds.
Despite the incident, the total value locked in Venus Protocol remains unaffected at $738 million. The team emphasized the security of users’ funds and assured the community that “funds are SAFU” (Secure Asset Fund for Users).
In response to the situation, the Venus community plans to issue a proposal to replenish liquidity from the treasury, demonstrating a proactive approach to resolving the aftermath of the glitch.