The decentralized exchange dYdX has published a post-mortem and community update outlining its plans to compensate traders impacted by a chain halt that suspended operations for approximately eight hours during last month’s market crash.
The exchange announced on Monday that its governance community will vote on providing compensation to affected traders, potentially amounting to $462,000 from the protocol’s insurance fund.
dYdX explained that the outage on October 10 was due to “a misordered code process,” with the duration being further extended by delays in validators restarting their oracle sidecar services. The DEX added that when the chain resumed, “the matching engine processed trades/liquidations at incorrect prices due to stale oracle data.”
dYdX confirmed that no user funds were lost onchain, but some traders did incur liquidation-related losses during the halt.
The dYdX governance community will vote on whether affected traders should receive compensation from the protocol’s insurance fund.
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Binance’s reaction to market volatility
The October cryptocurrency market crash, which resulted in approximately $19 billion in liquidated positions and marked the largest liquidation event in crypto, also tested Binance’s trading operations amid heightened volatility, user concerns, and regulatory scrutiny.
Traders criticized the exchange for technical issues that prevented them from closing their positions, including interface glitches that displayed multiple tokens priced below zero and the depegging of Ethena’s USDe (USDE) synthetic stablecoin.
Although Binance did not accept any liability for traders’ losses, it announced a $400 million relief initiative for those affected, comprising $300 million in token vouchers and $100 million for ecosystem participants who were impacted.
Binance initiated a $45 million BNB token airdrop for memecoin traders who experienced losses during the crash to “restore market confidence.”
Overall, the exchange committed $728 million to assist traders impacted by the sell-off.
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