BNBChainCore has put forth a proposal on the Venus forum that could potentially reshape the future of the BNB Chain by targeting a notorious exploiter. The proposal, titled “BNB Bridge Exploiter Account Remediation,” outlines a comprehensive plan to seize the exploiter’s collateral and settle outstanding debts while avoiding any market-wide liquidation of BNB.
BNBChainCore’s Proposal On Venus Forum
The proposition is designed to grant BNBChain the authority to confiscate the BNB Bridge exploiter’s collateral, totaling 630,240.00 BNB. Additionally, it aims to resolve unsettled obligations of 58,440,000 USDT and 37,440,000 USDC, bypassing the necessity of BNB liquidation in the market.
As of December 11, 2023, the exploiter’s balance includes substantial BNB, USDT, and USDC holdings. To navigate this situation, the proposal advocates implementing a forced liquidation mechanism. BNBChain would have the authority to enable forced liquidation for the exploiter’s position, followed by the seizure of the remaining BNB post-liquidation.
The proposed plan comprises a series of meticulous steps, including the liquidation of 100% of the exploiter’s USDT and USDC positions, the seizure of the remaining BNB, and the claiming, seizing, and forwarding of the XVS tokens allocated to the exploiter’s account to the Venus treasury. The execution of these steps is envisioned to reduce the exploiter’s debts and potentially address Venus Protocol’s shortfall.
The financial calculations and projections detailed in the proposal offer a comprehensive overview of the exploiter’s balance, outstanding borrow amounts, accrued XVS emissions, and potential shortfall repayment scenarios. The forced liquidation process is expected to incur a 10% fee, with 5% allocated to the community treasury and 5% to BNB Chain, contributing to the overall shortfall repayment.
Following the settlement of outstanding debts, the proposal outlines the asset recovery process involving acquiring the remaining BNB from the exploiter’s holdings. The protocol fees generated from the liquidation will be redeemed, and the XVS rewards allocated to the exploiter’s account will be claimed and seized.
Nevertheless, the proposed strategy seeks to safeguard the interests of the Venus Protocol by efficiently managing the exploiter’s funds and addressing potential shortfalls. The outlined process ensures a transparent and systematic approach to resolving the BNB Bridge exploits, aiming for a comprehensive repayment that benefits both the community treasury and the BNB Chain.
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