Binance Smart Chain’s Venus Project Subject To Failed Hostile Takeover Bid
Venus Project, a leading lending protocol based on the Binance Smart Chain, was subject to an unsuccessful hostile takeover bid, which was thwarted after timely intervention from the original team that managed to step in and stop the takeover bid in the nick of time.
Venus Project has been originally forked from Compound and MakerDAO, both Ethereum projects. The project has a decentralized system of governance on the protocol allowing token holders to vote on any changes that need to be made to the protocol.
Details Of The ProposalA team calling itself Team Bravo tabled the proposal, which passed today, and would have given voting and funding capability to a new team (Team Bravo) which would be completely separate from the original team behind the Venus Project. Team Bravo stated that their focus would be on increasing and sustaining a high XVS price for investors in the Venus Project.
The proposal asked for funding in the form of 1.9 million in Venus tokens (XVS) that amounted to around $60.8 million. The funding would be allocated over a period of five years and also provided incentives for token holders to ensure that they support the proposal. Supporters of the proposal were promised that they would receive 900,000 XVS, which equals roughly $29 million if they supported the proposal.
Abrupt CancellationThe proposal passed, with over 1.29 million users voting in favor of the proposal, while 1.19 million users voted against the proposal. Sixteen addresses also voted in favor of the proposal, while a further 39 voted against the proposal. However, once the proposal passed, the ‘Venus Deployer’ address canceled it. This also highlighted that whoever was behind the address has unilateral control over the protocol’s governance mechanism.
The Venus Protocol Liquidation ManipulationEarlier in the year, the Venus Protocol’s native token XVS was subject to manipulation, which led to over $200 million in DeFi liquidations and over $100 million in bad debt. The protocol, which is the largest lending platform on the Binance Smart Chain, suffered from significant price manipulations when hostile actors manipulated the price of XVS tokens and subsequently borrowed 4100 BTC and 9600 ETH. This manipulation led to the creation of over $100 million in bad debt.
This was not the first time the Venus Protocol was subjected to such price manipulations. A previous, similar manipulation had led to hackers borrowing 3000 BTC and 7000 ETH.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Read more: https://www.cryptodaily.co.uk/2021/09/venus-project-hostile-takeover
Text source: Crypto Daily™
