dYdX Community to Decide on $462,000 Compensation Proposal After Outage
A significant outage during the largest liquidation event in crypto has led dYdX to propose compensating affected traders from its insurance fund, totaling up to $462,000.
The decentralized exchange dYdX has shared a post-mortem report outlining the steps for compensating traders affected by an outage that lasted eight hours during the largest liquidation event in the crypto world. The platform is proposing a vote within its governance community to allocate up to $462,000 from the insurance fund to compensate those impacted.
During the outage on October 10, system failures caused incorrect pricing, leading to significant liquidation-related losses for certain traders. dYdX clarified that while no user funds were lost on-chain, some traders did experience losses.
Additionally, the post detailed a broader context where Binance faced challenges amid the same market crash. Binance dealt with increased volatility and significant trader complaints about interface problems that hindered trading actions. In response, Binance launched a $400 million support initiative for impacted traders, highlighting the pressing need for a stable trading environment in crypto.
dYdX wrote: “The outage stemmed from a misordered code process, exacerbated by delays in validator services.”
Affected Wallets Source: dYdX
Binance Response Source: CZ_binance
