Venus Releases Supplemental Announcement for $LUNA Oracle Event

Venus, a lending protocol on BNB Chain, issued a $LUNA oracle event supplemental announcement stating that on Thursday May 12 at about 09:20 UTC, Chainlink’s price feed for $LUNA hit a price floor threshold and was suspended by Chainlink with a price of $0.107. The $LUNA market on Venus continued operating while the spot price continued to drop. The team became aware of a price disparity 4 hours later when the spot price was about $0.01 and suspended the protocol, leaving a funding loss shortfall of about $14.2 million. Venus Risk Fund with $15m in balances will pay down the full amount of the shortfall over time according to the risk fund allocation. In addition Venus negotiated with BNB Accelerator Fund to provide Venus with an immediate loan to cover liquidity (if required due to any existing shortfall). Venus Protocol will resume operating 48 hours from the passing of VIP-60, as controlled by governance timelock. Previously, Venus lost over $10 million due to Chainlink pausing $LUNA price feed, which is scheduled to be covered by the venture fund.