Venus Issues Preliminary Analysis of Hacking Attack, Reduces Collateral Factor to 0 for 7 Markets

ZkProver · 2026-03-16T00:25:28+00:00

Venus Protocol has implemented multiple preventive measures in response to abnormal activity in the THE liquidity pool, including suspending borrowing and withdrawals, and reducing the collateral factors to 0 across 7 markets. Attackers accumulated THE tokens through normal deposits and conducted price manipulation. Venus has committed to releasing a comprehensive report following the investigation.

ZkProver

2026-03-16 00:25:28

Abstract generation in progress

ChainCatcher News: Venus Protocol releases updates on THE liquidity pool abnormal activity. In addition to previously suspending THE borrowing and withdrawals, seven markets’ collateral factors (CF) have now been reduced to 0. The measures target markets where a single user holds an excessively high proportion of collateral. The seven markets are BCH, LTC, UNI, AAVE, FIL, TWT, and lisUSD. All other markets remain unaffected and continue normal operations.

The initial assessment of the attack method suggests that the attacker began accumulating THE tokens through normal deposit processes starting in June 2025, gradually reaching a maximum holding of 84% (about 12.2 million THE). Yesterday, the hacker directly transferred THE tokens into the protocol contract, instantly increasing the supply and creating a large amount of collateral. They then engaged in recursive price manipulation, exploiting the low on-chain THE liquidity combined with TWAP oracle delays. The hacker initiated a cycle: depositing THE, borrowing other assets, using borrowed assets to buy more THE on-chain, waiting for the TWAP oracle to update and push the price higher. Venus states that they remain committed to transparency and will release a full report after the investigation concludes.

BCH4,01%

LTC5,53%

UNI4,07%

AAVE7,44%

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