TechFlow, October 28 — According to Cointelegraph, decentralized exchange dYdX has released a post-mortem analysis report announcing that its governance community will vote on compensating affected traders up to $462,000, with funds drawn from the protocol's insurance fund.
The compensation stems from a chain outage on October 10 that caused the platform to halt operations for approximately eight hours, coinciding with the largest liquidation event in cryptocurrency history. dYdX stated the outage was "caused by a code flow error, and delayed validator restart of the oracle sidechain service prolonged the downtime." When the chain resumed, the matching engine processed trades and liquidations at incorrect prices due to stale oracle data.
Although on-chain user funds were not lost, some traders incurred losses related to liquidations during the outage. The dYdX governance community will now vote on whether to use the insurance fund to compensate affected traders.
