A large BNB position on Venus Protocol is nearing its liquidation point, raising concerns about the potential impact on the BNB Chain ecosystem.
The position, which was created by an attacker who exploited a vulnerability in the BNB bridge last year, is worth approximately $150 million.
The attacker secured the loan by depositing 900,000 BNB as collateral. However, with the recent decline in the price of BNB, the health rate of the loan has fallen below 1.03, meaning that it is at risk of being liquidated if the price of BNB drops below $220.
The BNB Chain core team has said that it is prepared to step in and liquidate the position if it reaches the liquidation point.
However, some experts have warned that this could have a negative impact on the BNB market, as it would likely lead to a sell-off of BNB tokens.
The hack that led to the creation of the large BNB position on Venus Protocol occurred in October 2022. The attacker exploited a vulnerability in the BNB bridge to mint 2 million BNB tokens, which were then deposited on Venus Protocol as collateral for a loan of $150 million.
The BNB Chain core team responded to the hack by halting the blockchain and instructing validators to cease operations.
This allowed the team to identify and recover some of the stolen funds. However, the attacker was still able to make off with an estimated $560 million worth of BNB tokens.
