How BNB Almost Crashed: The Venus-BNB Alliance That Prevented Disaster
<h1><strong><em>PRDT Weekly Deep Dive — 28 August 2023</em></strong></h1>
<p>The fast-paced world of decentralized finance (DeFi) is a hub of innovation, occasionally giving rise to unexpected challenges. On October 6th, 2022, a significant event unfolded that provided a gripping insight into the tenacity of the crypto community and the delicate balance between decentralized autonomy and well-coordinated intervention.</p>
<h2>Exploitation and Strategic Maneuvering</h2>
<p><img alt="" src="https://miro.medium.com/v2/resize:fit:700/1*TEfW8qpru6VrbRvYg15GRw.gif" style="height:394px; width:700px" /></p>
<p>Our story begins with the exploitation of a vulnerability in the BNB Chain bridge, a link connecting different blockchain networks. This weakness acted as an entry point for a hacker to generate a staggering 2 million BNB tokens on that decisive October day. Subsequently, 900,000 BNB were deposited onto the Venus Protocol — a cutting-edge decentralized lending platform that we are proud to call our partner. The hacker aimed to borrow and withdraw around $150 million worth of USDT and USDC.</p>
<p><iframe frameborder="0" height="569" scrolling="no" src="https://cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=a19fcc184b9711e1b4764040d3dc5c07&schema=twitter&url=https%3A//twitter.com/VenusProtocol/status/1578166457435033600&image=https%3A//i.embed.ly/1/image%3Furl%3Dhttps%253A%252F%252Fabs.twimg.com%252Ferrors%252Flogo46x38.png%26key%3Da19fcc184b9711e1b4764040d3dc5c07" title="Venus Protocol on Twitter: "1/2 Venus Protocol experienced NO EXPLOIT and funds are SAFE! The possible BNB threat actor has used the Venus platform to open an overcollateralized position of app. $254M and borrow app. $147.5M against 900K BNB Tokens deposited. https://t.co/wl4qtaXDl7 / Twitter"" width="680"></iframe></p>
<h2>The Hacker’s Strategic Move</h2>
<p>The hacker’s strategic approach was undeniably clever — aiming to quickly convert the borrowed assets into substantial profits. While their exact motive remains speculative, their intended outcome was clear: to set off a chain of events that could potentially disrupt the blockchain’s balance, affecting the value of BNB and potentially unsettling the entire DeFi ecosystem.</p>
<p><a href="https://medium.com/@PRDT_Finance/how-bnb-almost-crashed-the-venus-bnb-alliance-that-prevented-disaster-3655879d3a22"><strong>Read More</strong></a></p>