In keeping with Coinglass, the crypto market witnessed greater than $1.04 billion in liquidations throughout this era. Of this, a BNB place on the Venus lending protocol belonging to the perpetrator of the BSC bridge $560M hack was liquidated.
The BSC Bridge Hack: Understanding Certainly one of Crypto’s Greatest Exploits
The BSC brdige hack in October 2022 was one of many largest exploits in crypto and DeFi historical past, with the hacker stealing almost $593 million in BNB. However the story didn’t finish there because the hacker tried to launder as a lot cash as they may.
After the assault, the hacker deposited 900,000 BNB price $200 million on Venus as collateral to borrow $150 million price of stablecoins. With greater than $598.25 million in TVL, the Venus protocol is the second-largest DeFi protocol on the Binance Sensible Chain.
In keeping with DeFi researcher Ignas, the place was the “single largest potential liquidation in all #DeFi that can not be closed.” It is because, whereas the BNB Chain was halted and the community improve after the exploit, the ecosystem was put in danger, as liquidation of such an quantity might result in an extra plummet within the value of BNB.
Because of this, the Venus DAO voted to whitelist BNB Chain as the only liquidator of the hacker’s handle in case of a margin name. Notably, a drop within the value of BNB to $220 would see the hacker’s collateral liquidated.
Now, with the worth of the token experiencing a selloff up to now few days, the crew has chosen to manually liquidate the place to cut back the affect of a margin name on the BSC ecosystem.
On-chain knowledge from PeckShieldAlert exhibits that the place has been liquidated for five.6 million BNB tokens price $52.3 million, a fraction of the whole place.
Following in the present day’s market motion, the BNB Bridge exploiter account was made wholesome as promised by @BNBCHAIN utilizing whitelisted liquidation with none ensuing shortfall or additional affect to $bnb https://t.co/TGZ7nbiDPN
— Venus Protocol (@VenusProtocol) August 18, 2023
What’s Subsequent For BNB?
Since that point, the worth of BNB has dropped beneath $220. Now, the cryptocurrency is buying and selling at $215.00, reflecting a drop of 10.76% up to now 7 days.
Though the token has had a tricky time with its value up to now few months because the trade awaits the result of the SEC’s lawsuit towards Binance.US, the toke nonetheless manages to face sturdy than most would anticipate.
Presently, BNB has a market cap of $33 billion, making it the fourth-largest cryptocurrency.
Token value falls beneath hacker's liquidation value | Supply: BNBUSDT on Tradingview.com
Featured picture from Binance, chart from Tradingview.com