Over the past 2 days, there has been a lot of discussion, concern, and misinformation around $THE.

Let’s clarify what actually happened.

THENA was not exploited.

The incident originated from $THE market on Venus Protocol. Our own smart contracts and liquidity pools remain safe and operational.

We had been monitoring suspicious accumulation patterns for months and shared observations with security and protocol partners as early as 2025. Venus was always a potential risk surface. We also worked closely with zeroShadow and Hypernative, who helped flag early signals and coordinate with relevant parties, including law enforcement.

While market conditions and liquidity can influence price dynamics during extreme events, the root cause of this incident was a known architectural gap in Venus’s supply cap enforcement, previously identified but not remediated.

No one could predict how, if, or when an event like this would occur. But we were watching closely and ready to respond.

So what’s next?

1. Later today $THE Single Sided Vaults will see a large increase in APR, driven by fees generated during the incident. These update weekly on Tuesdays.

2. This Epoch’s voters will see outsized returns following the extreme volatility on Sunday.

We’re also planning to shed a bit more light on what THE future looks like.

Yes, it’s a challenging time, but we’re doing everything we can to push through and remedy the situation.

Onwards.