TechFlow News — Official announcement: Venus (XVS), the lending platform on Binance Smart Chain, commented on the recent large-scale XVS liquidation event. Previously, due to a surge in market orders and anticipation around the new reward token VRT, the price of XVS experienced significant appreciation. As a result, traders deposited collateral and repeatedly borrowed against it to continue purchasing XVS. Subsequently, some traders locked in profits from the price increase, leading to a price correction, which triggered massive liquidations in the XVS market.
Venus stated that although the rapid price decline led to account deficits and liquidators fully exploited this situation, Venus will deploy a grant program using XVS to cover the system shortfall. These tokens will not be sold into the market but will instead be used under the supervision of the Venus team to adjust leverage. To prevent such incidents from recurring, Venus will re-evaluate each asset supported on its platform and safely reduce their respective collateral factors. In the future, a user interface will also be developed to allow more participants to join the liquidation process, collectively sharing the workload.
