Venus LUNA market had a hardcoded $0.10 minimum price while Chainlink froze updates due to LUNA volatility. Attackers bought LUNA at drastically reduced prices and used it as collateral at $0.10/token to borrow other assets, extracting $11.2M before Venus suspended the market.

Venus Protocol issued a statement saying that Chainlink’s suspension of LUNA price updates after extreme volatility in LUNA prices caused the price of LUNA on the Venus lending market to remain at $0.107, while the market price of LUNA had dropped to $0.01 at that time. After the price update was suspended, two addresses lent about $13.5 million in assets by staking 230 million LUNA (worth about $2.3 million at the time), resulting in a loss of about $11.2 million to the protocol. At present, the LUNA lending market has been suspended, and this loss will be made up by the risk fund.