The decentralized exchange dYdX published a post-mortem and community update outlining plans to compensate traders impacted by a chain halt that paused operations for approximately eight hours during last month’s market downturn.
The exchange announced on Monday that its governance community will vote on providing compensation to affected traders with up to $462,000 from the protocol’s insurance fund.
dYdX stated that the outage on Oct. 10 was caused by “a misordered code process,” with its duration worsened by delays in validators restarting their oracle sidecar services. The DEX noted 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 on-chain, though some traders experienced liquidation-related losses during the halt.
The dYdX governance community will vote on whether to compensate affected traders using funds from the protocol’s insurance fund.
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Binance’s response to market turmoil
The crypto market crash in October, which wiped out around $19 billion in positions and became the largest liquidation event in crypto history, also tested Binance’s trading services as the exchange faced rising volatility, user concerns, and regulatory scrutiny.
Traders criticized the exchange for technical issues that prevented them from closing positions, including interface glitches that displayed several tokens priced below zero, and the depeg of Ethena’s USDe (USDE) synthetic stablecoin.
Although Binance did not take responsibility for traders’ losses, it launched a $400 million relief initiative for those affected, comprising $300 million in token vouchers and $100 million for ecosystem participants impacted.
Binance initiated a $45 million BNB token airdrop for memecoin traders who suffered losses during the crash to “boost market confidence.”
In total, the exchange committed $728 million for traders affected by the sell-off.
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