{"id":42769,"date":"2021-05-19T13:45:46","date_gmt":"2021-05-19T10:45:46","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=42769"},"modified":"2025-08-31T00:43:13","modified_gmt":"2025-08-30T21:43:13","slug":"venus-protocol-on-binance-smart-chain-records-200-million-in-liquidations","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/venus-protocol-on-binance-smart-chain-records-200-million-in-liquidations\/","title":{"rendered":"Venus protocol on Binance Smart Chain records $200 million in liquidations."},"content":{"rendered":"<p>Against the backdrop of a market correction, the liquidation volume in the lending DeFi protocol Venus on Binance Smart Chain (BSC) reached $200 million.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Please read our Venus XVS Liquidation Incident report. All funds are safe and the protocol is safe. Thank you<a href=\"https:\/\/t.co\/27x75gc3q8\">https:\/\/t.co\/27x75gc3q8<\/a><\/p>\n<p>\u2014 Venus (@VenusProtocol) <a href=\"https:\/\/twitter.com\/VenusProtocol\/status\/1394892979190513664?ref_src=twsrc%5Etfw\">May 19, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Not long before the cascade of liquidations, the native token XVS surged, with one of the main drivers being the Venus Reward Token (VRT) airdrop.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/search?q=%24VRT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$VRT<\/a> is now being distributed \ud83c\udf89 <a href=\"https:\/\/twitter.com\/hashtag\/BSC?src=hash&#038;ref_src=twsrc%5Etfw\">#BSC<\/a> <a href=\"https:\/\/t.co\/L4uwQVPGSZ\">https:\/\/t.co\/L4uwQVPGSZ<\/a><\/p>\n<p>\u2014 Venus (@VenusProtocol) <a href=\"https:\/\/twitter.com\/VenusProtocol\/status\/1394940045472194564?ref_src=twsrc%5Etfw\">May 19, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThere was a significant jump in the price of XVS, driven by large market orders and expectations around the new VRT,\u201d explained the project&#8217;s founder Joselito Lizarondo. \u201cIn the wake of the price surge, traders deposited and borrowed more funds to keep buying XVS.\u201d<\/p>\n<\/blockquote>\n<p>According to him, many market participants used high leverage to improve capital efficiency. With the onset of the volatile correction, a cascade of liquidations occurred in the XVS market.<\/p>\n<p>In the chart below, the Venus token price surged from below $80 to around $140, which occurred on May 18. This allowed users to borrow more funds, using XVS as collateral.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"495\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/XVS-1024x495.png\" alt=\"Liquidations of $200 million in Venus protocol on Binance Smart Chain\" class=\"wp-image-135858\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/XVS-1024x495.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/XVS-300x145.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/XVS-768x372.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/XVS-1536x743.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/XVS.png 1767w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Four-hour XVS\/USDT chart from TradingView.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cLiquidations in Venus Protocol are no different from those that occur when users open margin longs. You use collateral to borrow more funds to increase the position, which you can redeploy and adjust,\u201d emphasized Lizarondo.<\/p>\n<\/blockquote>\n<p>The founder of Venus added that there were no glitches in the protocol&#8217;s operation.<\/p>\n<p>The Block researcher Igor Igamberdiev expressed a different view \u2014 the price of XVS was manipulated.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/9<\/p>\n<p>Today we have witnessed the manipulation of XVS price\u200a\u2014\u200a the governance token of Venus Protocol on BSC.<\/p>\n<p>This incident resulted in $200M+ DeFi liquidations and a $100M+ of protocol bad debt.<\/p>\n<p>As usual, let\u2019s analyze this situation below\ud83d\udc47 <a href=\"https:\/\/t.co\/pAnjqHI25T\">pic.twitter.com\/pAnjqHI25T<\/a><\/p>\n<p>\u2014 Igor Igamberdiev (@FrankResearcher) <a href=\"https:\/\/twitter.com\/FrankResearcher\/status\/1394900186435096578?ref_src=twsrc%5Etfw\">May 19, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Analyst cited journalist Colin Wu&#8217;s tweet. It stated that a user borrowed 4100 BTC and 9600 ETH, generating \u201cbad debts\u201d of $100 million. Wu notes that Venus had a similar incident before on the platform.<\/p>\n<p>Igamberdiev recalled that a similar incident <a href=\"https:\/\/forklog.com\/en\/news\/dai-price-spike-on-coinbase-triggers-100m-liquidations-on-compound\">occurred<\/a> in February 2021 on the Ethereum lending service Compound. At that time, the DAI debt grew by 30%, triggering liquidations of positions in significantly cheaper crypto assets. The service&#8217;s oracle used Coinbase to obtain price data.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">2\/9<\/p>\n<p>The previous record for liquidation volume was held by Compound after the DAI price oracle incident ($88M).<\/p>\n<p>Back then, Compound Open Price Feed was heavily criticized by the Chainlink community, but virtually the same manipulation was just done even with Chainlink. <a href=\"https:\/\/t.co\/boiYvcLJv9\">pic.twitter.com\/boiYvcLJv9<\/a><\/p>\n<p>\u2014 Igor Igamberdiev (@FrankResearcher) <a href=\"https:\/\/twitter.com\/FrankResearcher\/status\/1394900192533549059?ref_src=twsrc%5Etfw\">May 19, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As of writing, Venus leads the field in total value locked (TVL) among Binance Smart Chain projects. The combined TVL of the BSC ecosystem stands at $35 billion.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"775\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Defistation-5-1024x775.png\" alt=\"Data: Defistation.\" class=\"wp-image-135859\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Defistation-5-1024x775.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/Defistation-5-300x227.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/Defistation-5-768x581.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/Defistation-5.png 1037w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Data: <a href=\"https:\/\/www.defistation.io\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Defistation<\/a>.<\/figcaption><\/figure>\n<p>In April, Venus project&#8217;s TVL <a href=\"https:\/\/forklog.com\/en\/news\/tvl-in-the-bsc-venus-protocol-surpasses-10-billion\">exceeded<\/a> $10 billion.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Against the backdrop of a market correction, the liquidation volume in the Venus lending DeFi protocol on Binance Smart Chain (BSC) reached $200 million.<\/p>\n","protected":false},"author":1,"featured_media":42770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1307,1093,1145,1787],"class_list":["post-42769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bnb-chain","tag-defi","tag-market-analysis","tag-venus-planet"],"aioseo_notices":[],"amp_enabled":true,"views":"60","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=42769"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42769\/revisions"}],"predecessor-version":[{"id":42771,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/42769\/revisions\/42771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/42770"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=42769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=42769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=42769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}