Venus Protocol Suspected of Being Attacked

The DeFi community shared suspicions on the evening of December 10th about a possible attack on Venus Protocol, a leading lending protocol on the BNB Chain.

Technical auditing firm SlowMist raised concerns about a potential exploit on their X account.

However, recent updates from the project team suggest that the core platform of Venus Protocol might not be the root cause. The critical pools of Venus and the XVS token do not appear to be experiencing technical issues.

Specifically, the price index of snBNB is showing irregularities, leading to asset manipulation and potential siphoning. These issues are confined to isolated pools and do not pose a systemic risk.

The snBNB team is reportedly working to resolve the issue. Initial speculations suggest that the manipulation of snBNB’s price index misled pools about the value of collateral assets, potentially allowing malicious actors to exploit the system by repeatedly borrowing (withdrawing assets from the pool).

Notably, this is not the first time hackers have targeted Venus Protocol for exploitation. In May 2021, price manipulation of the XVS token led to a $200 million loss in platform assets.

At the time of writing, detailed information about the exploit and the total damages have not been disclosed. Coin68 will continue to provide the latest updates on this situation to our readers.