The decentralized lending protocol Venus Protocol suffered an approximately $3.7 million attack on March 15, 2026, resulting in $2.18 million in bad debt. The attacker executed a sophisticated attack by manipulating the price of the low-liquidity token $THE, combining on-chain lending with off-chain derivatives, exposing systemic risks. The incident prompted the industry to re-examine collateral eligibility standards and risk parameter design.
Decentralized lending platform Venus Protocol recently suffered a supply cap manipulation attack on Thena tokens, resulting in losses exceeding $3.7 million. The attacker accumulated tokens over 9 months through gradual methods, ultimately bypassing supply caps and manipulating prices, which caused massive asset borrowing. The platform has suspended related lending and withdrawal functions to mitigate risks, highlighting systemic vulnerabilities in DeFi protocols regarding long-term monitoring and low-liquidity tokens.