Venus Protocol was Hit Hard By the Collapse in LUNA Token Prices
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.
Venus Protocol is the second-largest platform on the Binance Chain, according to DefiLlama, with roughly $1 billion in total value locked. Due to the incident, TVL has dropped by 28% in the last 24 hours. However, further withdrawals have been halted.
