🔔Venus Releases Preliminary Analysis of Hacking Attack Methods and Reduces Collateral Factor to 0 in 7 Markets Mars Finance reports that on March 16th, Venus Protocol released an update on the abnormal activity in the THE liquidity pool. In addition to previously suspending THE lending and withdrawals, the collateral factor (CF) in seven markets has been reduced to 0. This preventative measure targets markets where a single user holds an excessively high proportion of collateral. The seven markets are BCH, LTC, UNI, AAVE, FIL, TWT, and LISUSD. All other markets remain unaffected and continue normal operations. The preliminary assessment of the attack method indicates that the attacker began slowly accumulating THE tokens through normal deposit processes starting in June 2025, eventually holding 84% of the maximum limit (approximately 12.2 million THE tokens). Yesterday, the hacker directly transferred THE tokens into the protocol contract, instantly boosting the supply and creating a massive amount of collateral. The hackers then engaged in recursive price manipulation, exploiting the extremely low liquidity of THE on-chain coupled with TWAP oracle delays. The cycle involved depositing THE, lending out other assets, using the lent assets to buy more THE on-chain, and waiting for the TWAP oracle to update and drive up the price. Venus stated that it remains committed to transparency and will release a full report after the investigation concludes.