Decentralized exchange dYdX has released a post-mortem and community update detailing plans to compensate traders affected by a chain halt that paused operations for approximately eight hours during last month’s market crash.
The exchange announced on Monday that its governance community will vote on compensating affected traders with up to $462,000 from the protocol’s insurance fund.
dYdX stated 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 and liquidations at incorrect prices due to stale oracle data.
dYdX confirmed that no user funds were lost on-chain, but some traders experienced liquidation-related losses during the halt.
The dYdX governance community will decide through a vote whether affected traders should be compensated using funds from the protocol’s insurance fund.
Binance's Response to Market Turmoil
October’s crypto market crash, which led to the liquidation of roughly $19 billion in positions and marked the largest liquidation event in crypto history, also put Binance's trading services to the test. The exchange faced surging volatility, user concerns, and increased regulatory attention.
Traders expressed criticism regarding technical glitches that prevented them from closing out positions. These issues included interface problems that displayed several tokens priced below zero and the depeg of Ethena’s USDe synthetic stablecoin.
Although Binance did not assume liability for traders’ losses, it announced a $400 million relief initiative for affected traders. This initiative includes $300 million in token vouchers and $100 million for ecosystem participants who were impacted.
Binance also launched a $45 million BNB token airdrop specifically for memecoin traders who suffered losses during the crash, aiming to “boost market confidence.”
In total, the exchange pledged $728 million to support traders affected by the market sell-off.