The largest DeFi money market on Binance’s blockchain, Venus (XVS), finances a curious book. A string of events put it at risk of overexposure to assets from hacks and bridge exploits. For example, Venus considers some $250 million worth of stolen BNB to be part of its so-called total value locked (TVL). Today, it claims to possess roughly $950 million of TVL within Binance’s Smart Chain ecosystem, inclusive of those illegitimate funds. While large, the figure is 85% below its May 2021 high of $7 billion. Community members have accused Venus Protocol of hiding some of its liabilities, as well. Venus only operates in the Binance ecosystem, but that hasn’t stopped it from issuing a flurry of tokens. Venus is as complicated as the labyrinth of companies that compose Binance itself. In addition to holding the multi-hundred million dollar proceeds of one of the world’s largest thefts, Venus has also collected other forms of tainted collateral. All the way back in 2021, the main Venus token (XVS) whipsawed within six hours and caused $200 million in Venus Protocol liquidations. Specifically, on May 18, XVS round-tripped from $76 to $143 to $76. Those liquidations left it with $100 million in bad debt. Nowadays, XVS is trading under $6. Most of that bad debt used XVS as collateral to take loans from Venus. Debtors simply defaulted on their XVS-backed loans altogether, escaping with the loaned finances rather than reclaiming their XVS posted as collateral.

Full report : Community questions opaque finances at BNB Chain protocol Venus.