Venus Protocol · XVS liquidation cascade

An attacker pumps thinly-traded XVS on Binance; Venus's single-source oracle accepts the inflated price; the attacker borrows blue-chip assets against it. When the pump stops, price reverts and cascading liquidations leave the protocol with bad debt.
Attacker pumps & borrows Binance XVS market $75.00 Chainlink oracle single-source (Binance only) Venus lending pool 70% collateral factor $0 borrowed vs XVS Liquidation engine congestion: 20% Bad debt ledger $0
XVS spot price
$75.0
Attacker borrowed (BTC/ETH est.)
$0
Liquidations triggered
0
Protocol bad debt
$0
Parameters — edit me
4
70%
20%
1.4/s
Controls

Illustrative simulation. Mirrors the researched mechanism (single-source Binance oracle, XVS pumped from ~$75 toward $140+, borrowing against it, then a crash that cascades into liquidations and bad debt) — trade sizes and timing are randomized for visualization, not live onchain data. Part of The Onchain Experiment Atlas.