Venus suffers $274,000 loss from Binance oracle outage

The developers of Venus’s lending platform on the BNB Chain reported a failure in the Binance oracle that led to a loss of $274,000. The community will consider a proposal to restore liquidity from the treasury into the affected pool.

Following the @chaos_labs recommendations and out of an abundance of caution due to today’s Binance Oracle price feed issue on the Isolated LST BNB Pool, the snBNB market has been temporarily paused along with 2 other *isolated* markets (agEUR, stkBNB) with similar Binance…

— Venus Protocol (@VenusProtocol) December 10, 2023

The issue was detected in the LST-BNB pool.

The developers followed Chaos Labs’ recommendations and paused the snBNB, agEUR and stkBNB markets with Binance oracle configurations similar to the affected pool.

Other markets remain fully functional and unaffected, according to the statement.

The exchange team subsequently identified and fixed the outage.

It is also worth mentioning that the Binance Oracle team has already identified and fixed the issue and this is strictly a precautionary temporary measure.

— Venus Protocol (@VenusProtocol) December 10, 2023

Earlier, developers urged not to treat the incident as an exploit, since there were no issues with Venus Core Pool or XVS.

Venus Protocol, the lending protocol on BNBChain, was exploited, according to @SlowMist_Team.

Venus responded: There is no issue with Venus Core Pool or XVS. There is no problem with security either. Binance Oracle had a short-term price issue, asmall lsolated pool experienced a… pic.twitter.com/ecimwql79u

— Wu Blockchain (@WuBlockchain) December 10, 2023

On December 10, user SaulCapital warned followers about problems with one of the pools. He posted a link to a suspicious wallet address involved in the incident.

The isolated pool on @VenusProtocol for liquid staked BNB got exploited.

Exploiter: https://t.co/YyKDVFhfWv
Pool: https://t.co/liWPjWFp2J

Other pools don’t seem to be exploited yet. Not sure if possible to exploit those, but I’d exit just to be safe. pic.twitter.com/KzXVRAok4t

— Saul (@SaulCapital) December 10, 2023

According to DeFi Llama, TVL of the project over the last 24 hours fell by $49.8 million to $714.3 million.

The price of Venus’s utility token over the day fell by 9.9%, to $9.59, according to CoinGecko. At one point the price slid to $9.43.

Earlier, a wallet linked to the Token Hub bridge heist faced liquidation of three positions on Venus Protocol as BNB slipped below $220, resulting in attacker losses of 5.64 million vBNB (~$53.2 million at the time).