Venus Luna Incident update 3: Resuming the Protocol

Protocol Development
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Venus LUNA Incident Update 3: Resuming the Protocol

Dear Venus Community,

Thank you for your patience and your support as we work through safely resuming Venus Protocol. The protocol was previously paused by multisig transaction on the PauseGuardian contract to protect our users from further impact caused by the LUNA Chainlink Price Feed suspension.

We have crafted a plan to resume Venus Protocol and ensure that all affected users can repay their debts & exit their over-leveraged positions rather than experience liquidation due to any differences in market conditions since the pause.

In order to prevent instantaneous liquidations upon unpausing Venus, we have turned off all price feeds to the protocol. This only allows asset supply and repayments to occur, and prevents borrowing and liquidations.

We have also launched VIP-61. This VIP will adjust the Collateral Factor on LUNA and UST markets to zero, the first step in offboarding these assets from Venus Protocol.

The specific commands for VIP-61 are as follows:

  • setCollateralFactor(LUNA, 0)
  • setCollateralFactor(UST, 0)
  • LUNA.setPendingAdmin(multisig)
  • UST.setPendingAdmin(multisig)

A repayment window of 12 hours (instead of the 24 hours stated in VIP-61) will follow the resumption of Venus Protocol, after which point price feeds will be restored to re-enable support for liquidations.

After the launch of VIP-61 for voting, the rest of the plan steps are outlined below:

  1. Set zero feeds on all markets — partially executed today — Sunday 8:00 AM UTC
  2. Unpause Venus Protocol (VIP-60) — Sunday 10:39 AM UTC
  3. User repayment window in effect for 12 Hours — Sunday 11:00 AM UTC to 11:00 PM UTC
  4. Reset all price feeds EXCEPT LUNA & UST to live feed values — Sunday 11:00 PM UTC
  5. VIP-61 Activated (LUNA & UST collateral factors set to zero) — Monday 9:30 PM UTC
  6. Reset LUNA & UST price feeds to live feed values — Monday 10:00 PM UTC
  7. LUNA & UST market exit opportunity for Protocol users — Monday 10:00 PM UTC to Friday 4:30 PM UTC
    8.( LUNA and UST remaining in the protocol after this period of time will be inaccessible.)*
  8. VIP-62 Vote to deprecate LUNA & UST (remove from Venus) — Wednesday 10:30 AM UTC
    10.(LUNA and UST deprecation will occur upon activation of the VIP (see the end time in step 7).)*

We will continue to announce each step as we implement it on Twitter, as well as in our official Discord community.

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