Decentralized exchange dYdX has issued a post-mortem and community update detailing plans to compensate traders affected by a chain downtime that temporarily halted operations for approximately eight hours during last month’s market crash.
Exchange He said On Monday, the management community will vote on whether to compensate affected traders with up to $462,000 from the protocol’s insurance fund.
DYdX wrote that the October 10 outage arose “from a faulty code operation, and its duration was exacerbated by a delay in validators restarting Oracle sidecar services.” According to DEX, when the chain resumed, “the matching engine processed trades/liquidations at incorrect prices due to outdated oracle data.”
DYdX said no user funds were lost on-chain, but some traders suffered liquidation-related losses during the downtime.
The dYdX management community will vote to determine whether affected traders should be compensated with funds derived from protocol insurance. finance.
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Binance’s response to market turmoil
October’s cryptocurrency market crash, which wiped out nearly $19 billion of positions and was the largest liquidation event in cryptocurrency history, also tested Binance’s trading services as the exchange faced increased volatility, user concerns, and regulatory attention.
Traders criticized the exchange for technical glitches that prevented them from closing positions, including interface issues that showed several tokens at a price below zero, and the unpegging of Ethena’s synthetic stablecoin USDe (USDE).
While Binance did not take any responsibility for traders’ losses, it announced a $400 million relief initiative for affected traders, including $300 million in token vouchers and $100 million for affected ecosystem participants.
Binance Fired Dropping a $45 million BNB token for memecoin traders who suffered losses during the crash to “boost market confidence.”
In total, the exchange pledged $728 million to traders affected by the sell-off.
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