In a move to secure misappropriated assets and prevent further detrimental impact, the Venus community rallied together in November 2022 to pass a significant governance proposal submitted by BNB Chain.
The proposal aimed to whitelist the liquidation of the BNB Bridge exploiter’s position exclusively to their core team, with the objective of protecting the assets and avoiding any undesirable sell-offs. This approved mechanism granted the team access to a specially funded wallet with $30 million worth of USDT, ensuring ample support to address potential shortfalls on Venus.
VIP-79 Whitelist BNB Chain as the Sole Liquidator of the BNB Exploiter Address
With the market’s volatile nature and the risk of triggering cascading liquidations, the Venus community and its delegators put forth a VIP (Venus Improvement Proposal) on behalf of the network core team. The proposal, outlined in detail here, sought to introduce whitelisting capabilities specifically for executing liquidations. The primary focus of this capability was to target the liquidation of the BNB bridge exploiter’s position on Venus.
By requesting the core team to assume the role of the exclusive liquidator, the intention was to safely manage the substantial volume of its native token and mitigate potential damage to the market. The proposal garnered support from the Venus community, recognizing the need to entrust the core team with this responsibility.
Collaborative Efforts to Safeguard Venus Stability
Upon acceptance of the proposal, the core team pledged to collaborate closely with Binance and other key stakeholders within their ecosystem. This partnership aimed to ensure a swift response in case the exploiter’s position approached the liquidation line.
In such a scenario, the joint effort would involve repaying the debt, thereby safeguarding the stability and financial well-being of Venus.
Mitigating Risks to Venus Users, BNB Token, and BNB Chain
The approval of the VIP-79 proposal represented a crucial step in addressing the risks posed by the BNB bridge exploiter’s position. Given the potential market repercussions and the potential for further cascading liquidations, the Venus community prioritized the security of its users, the value of the BNB token, and the overall health of the network.
By empowering the core team as the sole liquidator, the community demonstrated its faith in its expertise and commitment to responsible management of misappropriated assets. This decision aimed to minimize unnecessary damage to the market and fortify the stability of Venus.
As of the time of writing this article, the price of Binance Coin is subject to real-time fluctuations in the cryptocurrency market with too many FUDs recently. The token has emerged as a prominent digital asset, gaining significant attention from traders, investors, and crypto enthusiasts.
At any given moment, the BNB price is influenced by various factors, including market demand, trading volume, investor sentiment, regulatory developments, and overall market conditions. The dynamic nature of the cryptocurrency market means that BNB’s value can experience rapid changes within short time frames.
Back to November 8, 2022, a significant piece of news circulated within the cryptocurrency community – CZ’s potential acquisition of FTX. This announcement created a surge in Binance coin’s value, propelling it to a remarkable $375.
The fact that can not be denied is that BNB has proven itself as one of the most resilient coins during the downtrend of the past two years. Many investors continue to hold onto their BNB, demonstrating unwavering confidence in its long-term prospects.
However, it is worth mentioning that although initial reports suggested CZ’s potential acquisition of FTX, he eventually decided against proceeding with the purchase. The dynamics of the cryptocurrency market can often be unpredictable, and it is crucial to stay informed and make calculated decisions when navigating this ever-evolving landscape
The Venus community’s approval of the governance proposal to whitelist BNB Chain as the exclusive liquidator of its exploiter’s position reflected a proactive and unified effort to protect the platform’s integrity.
By entrusting the core team with this critical responsibility, the community sought to mitigate potential risks and safeguard Venus users, the BNB token, and the broader ecosystem. With collaborative efforts and joint support from Binance and other key stakeholders, the Venus community reinforced its commitment to maintaining stability and upholding the financial well-being of the platform.