Decentralized exchange dYdX has published a post-mortem and community update outlining its plan to compensate traders impacted by a recent chain halt that lasted around eight hours during last month’s market crash.
In a Monday statement, the exchange said its governance community will soon vote on a proposal to allocate up to $462,000 from the protocol’s insurance fund to affected users.
dYdX explained that the Oct. 10 outage was caused by a “misordered code process,” while the extended downtime resulted from validators taking longer than expected to restart their oracle sidecar services. When the chain came back online, the platform’s matching engine executed trades and liquidations at incorrect prices because of outdated oracle data.
dYdX confirmed that no on-chain user funds were lost during the incident, though some traders experienced liquidation-related losses while the network was halted.
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The exchange said its governance community will vote on whether to use the protocol’s insurance fund to reimburse those affected.
Binance Pledges $728 Million Relief After Historic Market Crash
October’s crypto market meltdown, which erased nearly $19 billion in positions, marking the largest liquidation event in the industry’s history, also put Binance’s trading systems under heavy stress amid extreme volatility, user frustration, and growing regulatory scrutiny.
Traders accused the exchange of technical failures that prevented them from closing positions, citing interface glitches that displayed several tokens priced below zero and the temporary depeg of Ethena’s USDe synthetic stablecoin.
Although Binance declined to accept liability for user losses, it unveiled a $400 million relief package, including $300 million in token vouchers and $100 million dedicated to ecosystem participants. Additionally, the exchange launched a $45 million BNB token airdrop for memecoin traders impacted by the crash, aiming to restore confidence.
In total, Binance committed $728 million to support traders affected by the sell-off.
