dYdX Proposes $462K Compensation for Traders After Chain Halt
dYdX, a decentralized exchange, is considering a proposal to compensate traders who incurred losses during a chain halt on October 10. The incident, caused by a rare code issue, led to incorrect trade executions and liquidations, resulting in financial losses for some users. The proposal aims to cover 27 verified claims from the protocol's $16.2M insurance fund, totaling $462,097.79 in payouts.
The proposal, details of which are available on dYdX's official channels and community reports, seeks to boost confidence in dYdX's decentralized governance. It has been compared to Binance's $400 million user support program. The dYdX community has largely welcomed the proposal, with most users expressing support for its swift approval on the forum.
The incident occurred due to a rare code issue during high market volatility. It led to a chain halt and automatic network state maintenance, causing incorrect trade executions and liquidations. Notably, no funds were directly lost on-chain.
The proposal aims to compensate 27 verified claims, with total payouts of $462,097.79. It is part of dYdX's efforts to restore confidence in its platform following the October 10 incident. The positive community sentiment suggests widespread support for the compensation plan.
