[BNB Chain] Configure Emergency Brake (EBrakeV2) with DeviationSentinel

Proposals
1

Summary

This proposal enhances the Emergency Brake (EBrake) system on BNB Chain mainnet, as originally proposed in the Emergency Brake - Price Deviation Safeguard Mechanism community post. It configures the DeviationSentinel, an automated oracle-deviation monitor, to work with the upgraded EBrakeV2 contract, and grants the Venus team multisig manual Emergency Brake permissions as a fallback. This lays the foundational on-chain infrastructure for the full system to operate on BNB Chain.

Background

In February 2026, Venus Protocol published a community proposal to introduce a targeted oracle safeguard mechanism. The core problem it addresses: discrepancies between external oracle prices (such as the Resilient Oracle) and on-chain DEX prices (such as PancakeSwap) can create exploitable conditions; particularly during periods of volatility or thin liquidity.

  • The technical implementation relies on two components:
  • The DeviationSentinel: an off-chain monitor that continuously compares oracle prices against on-chain DEX prices and, when a significant deviation is detected, triggers a targeted on-chain restriction.
  • The Emergency Brake (EBrake): the on-chain contract that executes those restrictions, setting Collateral Factors to 0 or restricting borrowing, in response to the DeviationSentinel’s signal.

EBrakeV2 is an upgraded version of the Emergency Brake contract, featuring improved permission management and more granular access control. This VIP configures EBrakeV2 to receive signals from the DeviationSentinel, making the safeguard system operational on BNB Chain mainnet.

Details

1. Wire DeviationSentinel to EBrakeV2

The DeviationSentinel contract is granted permission (via the Access Control Manager) to invoke the activateBrake() function on EBrakeV2. This is the key connection that enables automated enforcement: when the off-chain monitor detects an oracle-DEX price deviation beyond the configured threshold, it signals the DeviationSentinel, which then calls EBrakeV2 to apply the appropriate restriction on-chain.

This operates without requiring manual team intervention during a live oracle deviation incident.

2. Grant Venus Team Multisig Emergency Brake Permissions

The Venus team multisig on BNB Chain mainnet is granted the ability to manually trigger Emergency Brake actions on EBrakeV2. This serves as a manual fallback for scenarios that fall outside the automated detection window, or where the team needs to act ahead of the automated system.

3. Access Control Manager Permission Updates

The Access Control Manager (ACM) is updated to register the permissions for both the DeviationSentinel and the Venus team multisig, scoping each actor’s access precisely to the EBrakeV2 functions they are authorised to call.

Action

This VIP consists of 3 key actions on BNB Chain:

1. Grant DeviationSentinel permission to call EBrakeV2

  • Call giveCallPermission on the Access Control Manager to authorize the DeviationSentinel contract to invoke activateBrake() on the EBrakeV2 contract

2. Grant Venus team multisig manual Emergency Brake permissions

  • Call giveCallPermission on the Access Control Manager to authorize the Venus team multisig to call EBrake action functions on EBrakeV2 on BSC mainnet

3. Finalize all ACM permission entries

  • Register all updated permissions in the Access Control Manager to make both the automated (DeviationSentinel) and manual (multisig) actors fully operational

Summary

If approved, this VIP will:

  • Connect the DeviationSentinel oracle monitoring system to the upgraded Emergency Brake (EBrakeV2) on BNB Chain mainnet, enabling automated, per-action market restrictions in response to oracle-DEX price deviations
  • Grant the Venus team multisig manual Emergency Brake permissions as an operational fallback during the early phase of the system
  • Update the Access Control Manager to register all required permissions for both the DeviationSentinel and the team multisig
  • Complete enhancement of the Emergency Brake system deployment on BNB Chain mainnet, building directly on the original Emergency Brake community proposal

We welcome community feedback on this proposal ahead of submitting it for a VIP vote.

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