Liquidity depth per major asset
Venus Protocol's assessment for RD-F-065 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Major assets (BNB, USDT, USDC, BTCB, ETH) have deep BSC DEX liquidity sufficient for orderly liquidation. Long-tail and governance-token collateral is demonstrably insufficient. March 2026 THE exploit: 254 bots executed 8,048 liquidation transactions against the THE/Thena market, yet $2.15M bad debt remained because THE's thin DEX liquidity (DEX price moved from $0.26 to $0.51 through recursive on-chain manipulation) could not absorb the position at scale. This is a live, high-confidence data point for thin-liquidity collateral failure. Isolated pool architecture theoretically ring-fences this risk, but the March 2026 exploit hit the Core Pool (shared liquidity), amplifying the systemic exposure.
Sources #
- URLVenus Protocol — Rekt IV (March 2026)Rekt.news Venus Protocol Rekt IV — 254 bots, 8,048 transactions, $2.15M bad debt residualretrieved 2026-04-28
- Venus Thena (THE) Incident: What Broke and What Was MissedBlockSec — Venus Thena Donation Attack analysis (liquidity depth and liquidation failure)retrieved 2026-04-28
Methodology #
Measure on-chain liquidity depth for protocol-held assets at 2% and 5% price impact in USD.
See the full factor methodology and distribution across all protocols →