Venus Protocol Official Statement regarding LUNA

Today, we became aware of errant price behavior for LUNA on Venus Protocol. Upon investigation, it was learned that the price feed had been paused by Chainlink due to extreme market conditions. The price on Venus was last listed at about $0.107 while the market price was $0.01. In order to de-risk this situation, the protocol was paused using PauseGuardian via multisig.

Given the continued risks of the LUNA market and in order to eliminate the possibility of further shortfall, the community has asked to suspend the LUNA market effective immediately. Venus Protocol also has a Risk Fund that will be utilized to remedy the shortfall that resulted from this event.

In order to take these steps, the price feed for LUNA will be temporarily set to 0 using OracleAdmin via multisig, this will effectively disable the market and, as an unintended byproduct, temporarily disable the protocol for all wallets that have a position with LUNA. Subsequently, a VIP will be prepared asking the community to set the collateral factor for LUNA to 0, after which the Chainlink price feed will be re-enabled which will allow withdrawals and liquidations.

Venus is also assessing the UST Situation carefully and will take further actions as necessary.

In regards to individual accounts, please join our official Discord community where our team can provide support to affected users.

More information will be issued as it becomes available. Please follow us on Twitter and join our Discord Server to get real time updates on this situation.