According to 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 One of Crypto’s Biggest 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. But the story didn’t finish there because the hacker tried to launder as a lot cash as they might.
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 Smart Chain.
According to DeFi researcher Ignas, the place was the “single largest potential liquidation in all #DeFi that can’t be closed.” This is as a result of, 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 may result in an additional plummet within the worth of BNB.
As a outcome, the Venus DAO voted to whitelist BNB Chain as the only real liquidator of the hacker’s tackle in case of a margin name. Notably, a drop within the worth of BNB to $220 would see the hacker’s collateral liquidated.
Now, with the value of the token experiencing a selloff previously few days, the group 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 full place.
Following as we speak’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 Next For BNB?
Since that point, the value of BNB has dropped beneath $220. Now, the cryptocurrency is buying and selling at $215.00, reflecting a drop of 10.76% previously 7 days.
Although the token has had a tricky time with its worth previously few months because the trade awaits the end result of the SEC’s lawsuit in opposition to Binance.US, the toke nonetheless manages to face robust than most would anticipate.
At this time, BNB has a market cap of $33 billion, making it the fourth-largest cryptocurrency.