Venus Community’s Swift Action: Boosting Stability Amid BNB Price Fluctuations with BNB Bridge Hacking

BNB Bridge Hackers’ Loan Health Factor Alert on Venus Amid Falling BNB Price

As the price of Binance Coin (BNB) plummeted below $210, early warning monitoring by Paidun revealed a concerning development: the BNB Bridge hackers’ loan health factor on Venus sank to 0.99. The Venus community responded by passing a governance proposal to greenlight the liquidation of positions linked to previous BNB Bridge hacks.

Initiation of Liquidation Actions by BNB Chain

In a recent turn of events, BNB Chain initiated liquidation actions against accounts associated with the BNB Bridge hackers. These hackers had exploited vulnerabilities last year to steal 2 million BNB tokens from BNB Chain’s Token Hub.

Unconventionally, they opted to deposit 900,000 BNB and secure loans of nearly $150 million in stablecoins via the Venus Protocol. Remarkably, the hackers maintained this position for nearly a year without interacting with the Venus contract.

Venus Management Department’s Involvement

Before liquidation commenced, the hackers’ accounts held a substantial $204.1 million in BNB on Venus. To address this complex scenario, the BNB Chain core team proposed that the Venus management department take over the hackers’ debt.

This initiative involved transferring $60 million to the BNB Bridge hacker liquidation account. As the price of BNB dipped below $220, triggering a liquidation state, the team initiated multiple transactions to liquidate $30 million in debt. Consequently, 146,150 stolen BNB were reclaimed, with a remaining debt of over $124 million.

Conclusion

The swift action taken by the Venus community and the BNB Chain core team highlights the importance of proactive measures during periods of price fluctuations. The response to the BNB Bridge hackers’ loan health factor alert showcases the collaborative efforts to maintain stability within the Venus ecosystem.