Developers to Relaunch Venus Protocol After Pause Amid Terra Crash

Venus Protocol to resume on May 16 with price oracles disabled to prevent liquidations.

The lending project Venus Protocol will resume operations on May 16 at around 13:39 (Kyiv/Moscow time). The developers will disconnect the protocol from all price oracles to prevent instantaneous liquidation of user assets.

⏸️ In order to prevent instantaneous liquidations after unpausing Venus, we have turned off all price feeds to the protocol. This only allows asset supply and repayments to occur, and prevents borrowing and liquidations.

— Venus Protocol (@VenusProtocol) May 14, 2022

“We have drafted a plan to resume Venus Protocol operations and guarantee that all affected users will be able to repay their debts and exit positions with extremely high leverage. They will not face liquidations due to any differences in market conditions compared with the moment the protocol was paused,” the project team wrote in the blog.

Huge volatility in LUNA caused problems with displaying the asset price in the decentralized Chainlink oracle network used by the project.

The oracle settings prevented displaying the price of the cryptocurrency below $0.1. Attackers exploited this — they deposited millions of tokens on the platform, using them as collateral. As a result, Venus Protocol lost about $13.5 million.

To protect users, the developers paused the protocol.

On May 16 the project will resume operations. Because price oracles will be disabled, users will only be able to deposit and repay assets. This step will prevent liquidations and will not allow borrowing.

The project team also launched the VIP-61 proposal. It would set the collateral factor to zero on the LUNA and UST markets.

In March 2022, Coinbase Wallet integrated with Venus Protocol.

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