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\u2019s market crash.<\/p>\n
The exchange said<\/a> on Monday that its governance community will vote on compensating affected traders with up to $462,000 from the protocol\u2019s insurance fund.<\/p>\n DYdX wrote that the Oct. 10 outage stemmed \u201cfrom a misordered code process, and its duration was exacerbated by delays in validators restarting their oracle sidecar services.\u201d According to the DEX, when the chain resumed, \u201cthe matching engine processed trades\/liquidations at incorrect prices due to stale oracle data.\u201d<\/p>\n DYdX said no user funds were lost onchain, but some traders suffered liquidation-related losses during the halt. <\/p>\n The dYdX governance community will vote to decide whether affected traders should be compensated with funds drawn from the protocol\u2019s insurance fund<\/a>.<\/p>\n Related: <\/strong><\/em>Citi eyes stablecoin payments through new partnership with Coinbase<\/strong><\/em><\/a><\/p>\n October\u2019s crypto market crash, which wiped out roughly $19 billion in positions<\/a> and was the largest liquidation event in crypto history, also tested Binance\u2019s trading services as the exchange faced surging volatility, user concerns and regulatory attention.<\/p>\n 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\u2019s USDe (USDE<\/a>) synthetic stablecoin.<\/p>\n While Binance did not assume any liability for traders\u2019 losses, it announced a $400 million relief initiative<\/a> for affected traders, including $300 million in token vouchers and $100 million for ecosystem participants who were affected.<\/p>\n Binance launched<\/a> a $45 million BNB token airdrop to memecoin traders that suffered losses during the crash to \u201cboost market confidence.\u201d<\/p>\n In total, the exchange pledged $728 million for traders<\/a> affected by the sell-off.<\/p>\nBinance\u2019s response to market turmoil<\/h2>\n