Venus Protocol, the major lending agreement of BNBChain, in the event that the price of BNB surpasses the liquidation threshold, the BNBChain core team will proceed as scheduled to assume control of the BNB position on Venus.
Venus Protocol Ready For BNB Liquidation At $220
The Venus Protocol, the largest lending agreement on BNBChain, has allocated $30 million in the liquidation address to settle account debts, with additional funds available if needed. There will be no sudden selling of BNB and no disruptions on Venus.
However, an announcement regarding this matter has been removed from the project’s official Twitter page, indicating the possibility of a potential liquidation. The parties involved are currently working on a confidential agreement.
Venus DAO, a community-led organization overseeing the Venus Protocol, operates a decentralized lending and borrowing network built on the Binance Smart Chain. This protocol allows users to borrow, lend, and earn interest on their cryptocurrency investments.
Resources reported a security breach in the BNB bridge, endangering Binance Coin and potentially leading to a liquidation worth $200 million on Venus Decentralized DAO if the price drops below $220.
Data from Coinglass reveals that the open interest, which refers to the number of active and unsettled futures contracts tied to BNB, continues to rise.
On Monday, the total open interest reached 1.62 million BNB ($360 million), the highest level since January 1. Over the past 24 hours, it has increased by more than 8% and nearly 27% in one week.
On Monday, the market rate for BNB dropped to $225, closely matching the previous low recorded on December 17. The prices have experienced a 25% decline since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance on June 5.
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