🚨VENUS PROTOCOL JUST GOT DRAINED FOR $3.7 MILLION IN ONE SINGLE ATTACK SEQUENCE AND THE METHOD SHOULD CONCERN EVERY DEFI USER ON BNB CHAIN.
A flash loan exploit just hit Venus Protocol. 20 $BTC . 1.5 million $CAKE . 200 $BNB BNB. Extracted in one coordinated move before any alert could fire.
Here is exactly how the attacker did it and why it worked.
Flash loans allow anyone to borrow unlimited capital with zero collateral as long as it is borrowed and repaid within the same block. The attacker used this to acquire a massive position in THE tokens instantly, deposited them as collateral into Venus Protocol, and borrowed CAKE, BTCB, and BNB against that inflated position before the protocol could detect the manipulation.
One block. One sequence. $3.7 million extracted.
The aftermath is now creating a second wave of damage. Tens of millions of THE tokens used as collateral are being force liquidated in real time pushing THE price down and creating cascading sell pressure across the Venus ecosystem.
This is not a one-time anomaly. Flash loan attacks targeting collateral valuation gaps in lending protocols are one of the most consistently successful exploit methods in all of DeFi. Venus Protocol is not the first and will not be the last.
If you hold assets deposited in Venus Protocol or have exposure to THE, monitor your positions right now. Liquidation cascades move faster than most users can manually respond. 🔴