Venus Protocol Investigates Abnormal Activity in THE Liquidity Pool

Venus Protocol suspended all THE borrowing and withdrawals after detecting abnormal activity, stating the incident created a $2.15 million liquidation shortfall while other markets remain unaffected.

Summary

Venus Protocol said it suspended all borrowing and withdrawals for THE while it investigates abnormal activity in the THE pool. The protocol said the incident resulted in an estimated $2.15 million liquidation shortfall, and that the attacker extracted about $5.07 million from Venus. According to the update, other markets remain unaffected.

Terms & Concepts
  • liquidation shortfall: A deficit that occurs when collateral liquidations do not recover enough value to fully cover outstanding borrowed funds.
  • borrowing: In a lending protocol, borrowing refers to taking out assets against posted collateral within a specific market or pool.
  • withdrawals: Withdrawals are the process of removing supplied assets from a protocol, typically subject to liquidity and risk controls.