The landing project Venus Protocol will resume work on May 16 at ~13:39 (Kyiv/Moscow time). Developers will disable the protocol from all price oracles to prevent instant liquidation of user assets.
Dear Venus Community,
Thank you for your patience and your support as we work through the action plan to safely relaunch Venus Protocol. We have meticulously crafted a plan to ensure a safe and secure experience for all of our users.
👇Details are below👇
— Venus Protocol (@VenusProtocol) May 14, 2022
“We have put in place a plan to bring Venus Protocol back online and ensure that all affected users can repay their debts and exit positions with extremely high leverage. 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.
The huge volatility of LUNA has led to problems displaying the price of the asset in the Chainlink decentralized oracle network that the project uses.
The oracle settings did not allow displaying the cryptocurrency price below $0.1. The attackers took advantage of this – they contributed millions of tokens to the platform, using them as collateral. Because of this, Venus Protocol lost about $13.5 million.
To protect users, developers suspended protocol.
On May 16, the project will resume work. Since price oracles will be disabled, users will only be able to deposit and redeem assets. The move will exclude liquidation of positions and will not allow borrowing funds.
The project team also launched offer VIP-61. It will set the margin to zero on the LUNA and UST markets.
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