The Venus Protocol extraction project will resume on May 16th at ~13:39 (Kyiv/Moscow time). Developers will disable the protocol from all price oracles to avoid instant liquidation of user assets.

“We have created a plan to bring Venus Protocol back online and ensure that all affected users can repay their debts and exit their positions with extremely high leverage. They will not face liquidation due to any difference in market conditions compared to when the protocol was paused,” the project team said in a blog post.

LUNA’s massive volatility has caused problems displaying the price of the asset on the Chainlink decentralized oracle network used by the project.

Oracle settings did not allow the display of cryptocurrency price below $0.1. Attackers took advantage of this – they contributed millions of coins to the platform, using it as collateral. Because of this, Venus Protocol lost about $13.5 million.

The developers suspended the protocol to protect users.

On May 16, the project will continue to work. Users can only deposit and use assets, as price predictors will be disabled. The move will exclude the liquidation of positions and will not allow borrowing funds.

The project team also launched the VIP-61 proposal. It will set the margin to zero in the LUNA and UST markets.

Recall that in March 2022, the Coinbase Wallet cryptocurrency wallet was integrated with the Venus Protocol.