The Venus neighborhood has recently been on high alert as the fate of the address linked to the historic BNB Chain Bridge hack approaches the possibility of liquidation. The BNB Bridge exploiter’s Venusian health rate, according to data from PeckShield, is an unsettling 0.99. Fears of a further reduction increase the risks for this particular address as BNB’s price has dropped to $207.9.
Health of BNB Bridge Hacker Declines
The Venus community had successfully handled a similar issue by supporting a governance proposal that authorized the disposal of the BNB Bridge attacker’s assets, drawing on previous experience. The health rate of the attacker’s address (0x48…9bec) has once again fallen below 1, setting up liquidation alarms, in a turn of events reminiscent of the past. This account has a big collateral holding of 784,616.10 BNB and a sizable debt of 124,000,000 USDT and USDC.
Over $593 million in BNB were lost as a result of the massive BNB Bridge breach in October 2022, which emerged as one of the most well-known heists in the crypto and DeFi environment. This provided context for the current situation. Following the hack, the offender borrowed $150 million worth of stablecoins using 900,000 BNB, valued at $200 million, as collateral on Venus, apparently to recoup the illicit gains.
However, the Venus protocol continues to have a strong presence in the DeFi universe. It has more than $600 million in total value locked (TVL), making it the second-largest DeFi platform on the Binance Smart Chain at the moment.
BNB Price Drops Further, Raising Concerns About Liquidation
BNB’s price has fallen below $220 during this complex saga and is currently hanging around $208.89, representing a decline of about 4% over the previous week. The impending liquidation of the exploiter’s collateral is receiving more attention as BNB’s price continues to fall.
This instance highlights the complex interactions among several smart contract networks with various degrees of centralization. The proactive efforts taken by the BNB Chain to address vulnerabilities act as a safety net against the effects of an impending liquidation event. It demonstrates the difficulties in balancing security precautions and market swings in the developing DeFi industry, causing a reevaluation of risk management strategies.
