The decentralized exchange dYdX has published a post-mortem and community update addressing plans to compensate traders impacted by an eight-hour chain halt during last month’s market crash.
The exchange announced on Monday that its governance community will vote on compensating affected traders with up to $462,000 from the protocol’s insurance fund.
dYdX explained that the outage on October 10 resulted from “a misordered code process,” with delays in validators restarting their oracle sidecar services prolonging the issue. When the chain resumed, the matching engine processed trades/liquidations at incorrect prices due to stale oracle data.
dYdX clarified that no user funds were lost on-chain, but some traders experienced liquidation-related losses during the halt.
The dYdX governance community will vote to determine whether affected traders should receive compensation from the protocol’s insurance fund.
Related: Citi eyes stablecoin payments through new partnership with Coinbase
Binance’s response to market turmoil
The crypto market crash in October, which erased approximately $19 billion in positions and marked the largest liquidation event in crypto history, also put Binance’s trading services to the test amid soaring volatility, user concerns, and regulatory scrutiny.
Traders criticized Binance for technical issues that prevented them from closing positions, including interface glitches that displayed several tokens priced below zero, as well as the de-pegging of Ethena’s USDe (USDE) synthetic stablecoin.
While Binance did not take on any liability for traders’ losses, it introduced a $400 million relief package for affected traders, which includes $300 million in token vouchers and $100 million for ecosystem participants impacted by the situation.
Binance announced a $45 million BNB token airdrop for memecoin traders who experienced losses during the crash to “boost market confidence.”
In total, the exchange has committed $728 million for traders affected by the sell-off.
Magazine: EU’s privacy-killing Chat Control bill delayed — but fight isn’t over
