VIP-99 is live. Proposal type: Normal. VIP-99 Whitelist BNB Chain to swap BUSD debt from 0x. Summary.

23 Feb 2023, 22:06

🔵 VIP-99 is live Proposal type: Normal VIP-99 Whitelist BNB Chain to swap BUSD debt from 0x... Summary In order to optimally manage the debt positions on Venus that resulted from the September 2022 BNB Bridge incident, and in light of future liquidity risk of BUSD, BNB Chain proposes to upgrade the vToken contracts on USDT, USDC, ETH and BTC for the purpose of swapping BUSD debt on behalf of the exploiter’s account into other more sustainably liquid assets. Reasoning With the recent velocity of BUSD liquidity into other assets, there exists an increasing liquidity risk that can impact the viable liquidation of the exploiter’s $60M BUSD debt position on Venus. With the proposed upgrade, BNB Chain will intervene on behalf of the exploiter’s account to swap the position into debt in more liquid markets such as USDT, USDC, ETH and BTC. Doing so will ensure immediate remediation of this risk without having to liquidate the debt and avoid the subsequent market impact that can introduce such a large position. Proposed Upgrade Add a smart contract that would allow a delegated BNB Chain address to swap the attacker’s borrow by repaying BUSD debt and borrowing an equivalent amount in USDC, USDT, ETH or BTC Upgrade Comptroller, vBUSD, vUSDT, vUSDC, vETH, vBTC contracts to grant borrowing rights to this contract Conclusion Following adoption and execution of this upgrade, BNB Chain will immediately begin swapping the exploiter BUSD debt into other markets over the course of a week. Vote 👉🏻