Venus Protocol said on Sunday it had identified suspicious trading activity in its liquidity pool for the Thena (THE) token. Venus is a decentralized lending and borrowing platform, and THE is the native token of the Thena DeFi platform.

Allez Labs, which Venus Protocol identified as its risk manager, said the incident appears to be a supply cap attack. The attack unfolded in two phases. In the first phase, the attacker steadily accumulated approximately 84% of the total Thena token market capitalization. In the second phase, the attacker used those holdings as collateral to borrow other assets from the…