Venus Protocol, a decentralized lending market built on the BNB Chain, denied claims that it had suffered a significant loss in an exploit over the weekend.

The team behind the protocol took to X to quickly shut down rumors of what was first reported to be a $54 billion exploit by blockchain security firm SlowMist.

 

Venus said that the protocol was working as intended, but a short-term price issue with the Binance Oracle that is responsible for price feeds in an isolated pool was responsible for the issue – something that SlowMist later clarified.

Brad Harrison, the head of Venus Labs, explained that the oracle which supports the price of snBNB – a yield bearing liquid staked version of BNB –  reported the wrong price in an isolated pool on the protocol.

This resulted in one user inadvertently borrowing $270,000 worth of the asset in question. Although the oracle was introduced “to avoid these exact situations,” Harrison said that the risk of such an issue still prevails when it comes to long assets that rarely have multiple price feeds available.

“In this case we will look ahead to enhance the security on isolated pools by adding support for price resilience,” said Harrison.

“While participating in isolated pools always involves higher risk, no other pools were affected.”

Venus Protocol also paused the snBNB market, along with two other isolated markets with similar Binance Oracle configurations.  

“It is also worth mentioning that the Binance Oracle team has already identified and fixed the issue and this is strictly a precautionary temporary measure,” they noted.