Decentralized exchange dYdX has released a post-mortem and community update detailing its plans to compensate traders affected by a chain outage that shut down operations for approximately eight hours during last month’s market crash.
The exchange announced Monday that its governance 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 was “due to a misordered code process, and its duration was further exacerbated by validators’ delays in restarting Oracle Sidecar services.” According to the DEX, when the chain was restarted, “the matching engine processed trades/liquidations at incorrect prices due to outdated oracle data.”
Your wallet was affected by the outage. sauce: dYdX
DYdX said that while no user funds were lost on-chain, some traders suffered liquidation-related losses during the outage.
The dYdX governance community will vote to decide whether affected traders should be compensated with funds drawn from the protocol’s insurance fund.
Binance’s response to market turmoil
October’s crypto market crash, which wiped out about $19 billion in positions and became the largest liquidation event in crypto history, also put Binance’s trading services to the test as exchanges faced soaring volatility, user concerns and regulatory attention.
Traders criticized the exchange for technical glitches that made it impossible to close positions, including an interface issue that showed the price of some tokens below zero, and a depeg of Etena’s USDe (USDE) synthetic stablecoin.
Binance took no responsibility for the traders’ losses, but announced a $400 million relief initiative for affected traders, including $300 million in token vouchers and $100 million for affected ecosystem participants.
sauce: CZ_Binance
Binance has launched an airdrop of $45 million in BNB tokens to memecoin traders who suffered losses in the crash to “boost market confidence.”
The exchange pledged a total of $728 million in aid to traders affected by the crash.
