15 May 2022 14:55, UTC.
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The Venus Protocol lending project will resume on May 16 at ~10:39 (Kiev/MSK). The developers will disable the protocol from all price oracles to prevent instant liquidation of users’ assets.
⏸️ In order to prevent instantaneous liquidations after unpausing Venus, we have turned off all price feeds to the protocol. This only allows asset supply and repayments to occur, and prevents borrowing and liquidations.
– Venus Protocol (@VenusProtocol) May 14, 2022
“We have put together a plan to reopen Venus Protocol and ensure that all affected users can pay off their debts and get out of extremely leveraged positions. They will not face liquidation due to any differences in market conditions compared to when the protocol was paused,” the project team wrote in a blog post.
LUNA’s enormous volatility has led to problems with the asset price display on Chainlink’s decentralized oracle network, which the project uses.
The oracle settings did not allow the cryptocurrency’s price to be displayed below $0.1. Attackers took advantage of this – they deposited millions of tokens on the platform, using them as collateral. Because of this, Venus Protocol lost about $13.5 million.
To protect users, the developers suspended the protocol.
On May 16, the project will resume operations. Since price oracles will be disabled, users will only be able to deposit and redeem assets. The step will exclude liquidation of positions and will not allow to borrow funds.
The project team has also launched the VIP-61 offer. It will set zero value of the security coefficient on the LUNA and UST markets.
As a reminder, the Coinbase Wallet cryptocurrency wallet integrated with Venus Protocol in March 2022.
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