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On the $THE market incident: here's what happened and what we're doing about it. The attacker spent 9 months slowly accumulating $THE to build a dominant supply position. They then bypassed our supply cap by directly transferring tokens to the protocol contract. This is a gap in our code we are working to close. From there, they ran a recursive loop: borrow assets → swap for $THE to pump the price → directly transfer $THE into vTHE to inflate the exchange rate → repeat. Each cycle generated excess borrowing power, sustaining the loop until liquidation. This created bad debt on the protocol. Key points to note: 1⃣This was not a flash loan attack 2⃣Venus' oracles did not fail 3⃣Venus Flux is unaffected We've paused the $THE market, set CF to zero, and applied precautionary measures to 8 other at-risk markets by setting their CF to zero as well. Next: supply cap enforcement hardening, tighter collateral eligibility for low-liquidity assets, and price monitoring safeguards. Full post-mortem to follow. Follow official Venus channels only. More updates are coming.