Decentralized exchange dYdX released a post-mortem and community update detailing plans to compensate traders affected by a chain halt that paused operations for roughly eight hours during last month’s market crash.
The exchange said on Monday that its governance community will vote on compensating affected traders with up to $462,000 from the protocol’s insurance fund.
DYdX wrote that the Oct. 10 outage stemmed “from a misordered code process, and its duration was exacerbated by delays in validators restarting their oracle sidecar services.” According to the DEX, when the chain resumed, “the matching engine processed trades/liquidations at incorrect prices due to stale oracle data.”
Wallets affected by the outage. Source: dYdX
DYdX said no user funds were lost onchain, but some traders suffered liquidation-related losses during the halt.
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 roughly $19 billion in positions and was the largest liquidation event in crypto history, also tested Binance’s trading services as the exchange faced surging volatility, user concerns and regulatory attention.
Traders criticized the exchange for technical glitches that stopped them from closing out positions, including interface problems that showed several tokens priced below zero, and the depeg of Ethena’s USDe (USDE) synthetic stablecoin.
While Binance did not assume any liability for traders’ losses, it announced a $400 million relief initiative for affected traders, including $300 million in token vouchers and $100 million for ecosystem participants who were affected.
Source: CZ_binance
Binance launched a $45 million BNB token airdrop to memecoin traders that suffered losses during the crash to “boost market confidence.”
In total, the exchange pledged $728 million for traders affected by the sell-off.
