According to Cointelegraph: Venus, the Decentralized Finance (DeFi) lending and borrowing protocol, acknowledged that it was affected by an issue with one of its price feed oracles, resulting in borrowings worth approximately $270,000 on December 11. However, the protocol downplayed the incident as an exploit, promising to replenish the lost funds from its treasury.
Reports of a malfunctioning price oracle impacting Venus, a decentralized lending and borrowing marketplace based on the Binance Smart Chain, emerged on December 10.
A user by the name of SaulCapital warned his followers of an exploit in the Venus protocol's "isolated pool for liquid staked BNB". The suspect wallet address involved in the incident held nearly $260,000 at that time.
Countering these allegations, Venus Protocol ambassador NoOneVII explained that it was an "Oracle price issue" confined to a small isolated market. He further clarified that the Venus Core Pool and other pools were independent and unaffected by this issue, ensuring no security concerns.
Brad, the Head of Venus Labs, concurred and revealed that the Binance oracle supporting the snBNB asset in the isolated pool had reported an incorrect price, leading to about $200,000 of borrowings.
Venus Protocol has assured that the snBNB price feed has returned to normalcy and that other markets along with the Core Pool remain unaffected, confirming that the "Funds are SAFU."
In its follow-up actions, the Venus community is expected to propose an "immediate injection of liquidity from the treasury to the affected pool totaling around $274K", while recovery of funds from the pool proceeds with the assistance of partners.
Meanwhile, the total value locked in Venus, which debuted in 2020, doesn't seem to have been affected by the incident, marking $738 million as of the time of writing, as per DefiLlama data.
Although Venus's native token (XVS) has dropped about 17.5% in the past 24 hours to a trading price of $9.56 per token, the plunge correlates with a broader market sell-off.
