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Wednesday, November 29, 2023
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    HomeDEFIVenus Protocol Confronts BNB Liquidation Risk Amid Price Slide

    Venus Protocol Confronts BNB Liquidation Risk Amid Price Slide

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    In current developments, the Venus group’s vigilance has been rekindled because the well being of the exploiter’s handle concerned within the infamous BNB Chain Bridge hack inches nearer to the brink of liquidation. In line with knowledge from PeckShield, the well being price of the BNB Bridge exploiter on Venus stands at a precarious 0.99. As the worth of BNB plummets to $207.9, issues about additional worth decline amplify the vulnerability of this handle.

    BNB Bridge Attacker Well being Falls Under 1

    The Venus group, having beforehand encountered such conditions, had efficiently navigated an analogous problem by passing a governance proposal to whitelist the liquidation of the BNB Bridge exploiter’s place. The present state of affairs resonates with historical past, because the well being of the exploiter’s handle (0x48…9bec) dips below 1 as soon as once more, triggering the chance of liquidation. This handle bears 784,616.10 BNB in collateral and holds a considerable debt place of 124 million USDT+USDC.

    The BNB Bridge hack in October 2022, which established itself as some of the main exploits in crypto and DeFi historical past and netted over $593 million in BNB, set the stage for this dire scenario. The hacker used 900,000 BNB price $200 million on Venus as collateral to borrow stablecoins price $150 million within the aftermath in an try and launder illicit proceeds.

    Regardless of this incident, the Venus protocol continues to be a robust power within the DeFi ecosystem. It now ranks because the second-largest DeFi protocol on the Binance Good Chain and has over $600 million in whole worth locked (TVL).

    Additionally Learn: Whales Buying Shiba Inu Amid Shibarium Restart, SHIB Price To Rally?

    BNB Value Continues Downfall, Excessive Threat Of Liquidation

    In gentle of this complicated story, the Binance Coin price has fallen beneath $220 and is at present buying and selling at $208.89, representing a decline of just about 4% during the last week. The potential results of BNB’s continued worth lower and the upcoming liquidation of the exploiter’s collateral come into focus because the state of affairs develops.

    BNB Chart

    This instance exemplifies the difficult interconnections between quite a few good contract networks with various levels of centralization. As a preventative technique, BNB Chain’s proactive method to resolving vulnerabilities helps to mitigate the results of a future liquidation disaster. This case emphasizes the troublesome stability between safety and market volatility because the DeFi panorama adjustments, necessitating danger administration methods to be re-evaluated.

    Additionally Learn: BTC Price Dips Target $20k, Last Opportunity Before the Bull Run?

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