Venus Protocol was Hit Hard By the Collapse in LUNA Token Prices

The decrease in LUNA token values has significantly impacted the Venus Protocol. On May 13, the DeFi platform announced that a price disparity on the platform had resulted in a multi-million dollar loss due to an exploit. Venus is a BNB Chain-based decentralised algorithmic money market protocol. The protocol derives its price information from Chainlink oracles, where the issues started. Due to the LUNA token’s severe market conditions, Chain Link has paused the price feed. Official team statement on the Chainlink LUNA/USD Price Feeds situation pic.twitter.com/EjA5naYalu — ChainLinkGod.eth (@ChainLinkGod) May 13, 2022 The LUNA price on Venus was last reported at around $0.107. However, the market price at the time was closer to $0.01. “The protocol was suspended using PauseGuardian via multisig to de-risk this situation,” it said. Suspended Venus Protocol According to Venus, an inquiry revealed two substantial deposits of LUNA at the incorrect price, which were utilised to borrow assets on the platform. According to industry expert, Chainlink’s suspension of LUNA price updates cost the protocol $11.2 million. Venus halted the protocol and said that it had a “Risk Fund” that would be used to make up for the shortfall caused by the occurrence. Dear Venus Community, Due to the unanticipated suspension of Chainlink's LUNA price feed, Venus has taken a precautionary measure to protect our users and is currently paused. A VIP to unp...