dYdX Plans User Compensation for October Outage
Decentralized exchange dYdX will hold a community vote on reimbursing users. The compensation covers losses from an eight-hour chain outage on October 10. The outage occurred during a major crypto market crash.
The proposal seeks to pay affected users up to $462,097. Funds would come from the protocol’s insurance fund.
A dYdX post-mortem report explained the outage. It was caused by a misordered code process and delays in validators restarting oracle services. Restarted validators used outdated price data, causing incorrect trade and liquidation prices.
No funds were lost on the blockchain. However, some users faced liquidations and losses due to inaccurate price feeds. The affected period was from October 10 at 21:52 UTC to October 11 at 05:35 UTC.
dYdX’s insurance fund holds roughly $16 million. The proposed payout is about 2.85% of this amount. Token holders will vote to decide if the issue qualifies for compensation as a protocol-level failure.
Market Crash and Impact on Other Exchanges
The crash followed former U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports. This caused panic in global markets on October 10.
The event triggered over $19 billion in liquidations, affecting 1.6 million traders.
Binance faced complaints about glitches and frozen price feeds during the crash. These issues prevented some traders from closing positions.
Binance denied liability but launched a $400 million relief plan. The aid includes stablecoin vouchers and funding for ecosystem users. Binance also held a separate BNB airdrop for memecoin traders.
In total, Binance pledged about $728 million in support following the crash.
