Venus Protocol Hit by THE and CAKE Liquidation Cascade

• A wallet that received 7,447 ETH from Tornado Cash triggered liquidations in THE and CAKE on Venus.
• The wallet used ETH on Aave to borrow $9.9M, then built a large THE position on Venus.
• The event left $2.15M bad debt on Venus while the attacker gained about $5.07M in profit.

A complex DeFi trade on BNB Chain triggered a sharp liquidation cascade across THE and CAKE markets on Venus Protocol. On-chain data shows a wallet that previously received 7,447 ETH worth about $16.29 million from Tornado Cash, moved the funds before the event.

How the Trade Was Built

Blockchain analysts traced the activity to a wallet beginning with “0x7a7”. The address first received 7,447 ETH, valued at nearly $16.29 million, from Tornado Cash. The funds were then placed on Aave as collateral.

Using that collateral, the wallet borrowed about $9.92 million in stablecoins. The funds we…

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