Quick Breakdown
- dYdX governance will vote on a $462K compensation plan for traders affected by its October chain halt.
- The outage was caused by code misordering and oracle delays, leading to liquidation losses.
- Binance unveiled a $728M trader relief plan, including airdrops and token vouchers, to rebuild confidence post-crash.
dYdX proposes $462K payout to affected traders
Decentralized exchange dYdX has released a post-mortem report addressing last month’s eight-hour chain halt that disrupted trading during the crypto market crash. The platform confirmed that its governance community will vote on a proposal to compensate affected traders with up to $462,000 from the protocol’s insurance fund.
According to the report, the October 10 outage occurred due to a “misordered code process,” which was further prolonged as validators delayed restarting their oracle sidecar services. When operations resumed, stale oracle data caused the matching engine to process trades and liquidations at incorrect prices.
While no user funds were lost on-chain, some traders suffered liquidation losses due to inaccurate pricing during the downtime. dYdX emphasized that the proposed compensation is meant to maintain community trust and protocol integrity.
“If approved by governance, only a small portion (2.85% of the insurance fund, or roughly $462,000 of the $16 million total) would be used to provide compensation. This approach aligns with the fund’s intended purpose while preserving overall protocol security,”
the exchange stated.
Binance’s massive $728M relief after market crash
The same market crash that affected dYdX also tested centralized exchanges like Binance, which faced record volatility and user backlash. Traders reported technical glitches, including frozen interfaces and mispriced tokens, as the $19 billion market wipeout triggered the largest liquidation event in crypto history.
Although Binance declined to take responsibility for traders’ losses, it announced a $400 million relief initiative consisting of $300 million in token vouchers and $100 million for ecosystem participants. Additionally, the exchange launched a $45 million BNB airdrop targeting memecoin traders hit by the crash — part of a total $728 million relief package aimed at restoring market confidence.
Meanwhile, according to on-chain data, Binance’s Bitcoin Netflow has remained strongly negative over recent weeks when measured by the 30-day moving average (SMA30). The sustained outflow trend indicates that more Bitcoin is being withdrawn from exchanges than deposited — a signal often interpreted as accumulation behavior.
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