Venus Protocol Halts New Ethereum BAL Loans After Reported Balancer Hack

Venus Protocol paused new BAL-collateral loans on Ethereum by setting LTV to zero, following Balancer hack reports, while keeping the liquidation threshold unchanged at 59% to protect current positions.

ETH

Summary

Venus Protocol announced on X that it has set the loan-to-value ratio for Ethereum BAL collateral to zero in response to reports of a Balancer hack, effectively halting new BAL-based loans. Existing positions remain unaffected as the liquidation threshold is maintained at 59%. This move aims to mitigate potential risk while ensuring borrower stability during the investigation.

Terms & Concepts
  • Venus Protocol: A decentralized finance (DeFi) lending platform allowing users to borrow and lend crypto assets.
  • Loan-to-Value (LTV): A ratio measuring the size of a loan compared to the value of the collateral asset.
  • Liquidation Threshold: The collateral value percentage at which a position is subject to forced liquidation.