dYdX Community to Vote on $462K Payout After Outage
Decentralized exchange DYDX is set to hold a governance vote on whether to compensate users affected by an eight-hour chain outage earlier this month. The proposal seeks to reimburse up to $462,097 from the protocol's insurance fund, representing 2.85% of its $16 million reserves.
The outage occurred on October 10 during a severe crypto market crash that triggered what analysts called the largest liquidation event in history. A post-mortem revealed the disruption stemmed from a misordered code process, compounded by validators restarting services with outdated oracle price data. While no blockchain funds were lost, traders faced liquidations and losses due to inaccurate price feeds.
The incident has reignited debates about protocol-level failures in decentralized systems. Token holders must now determine whether the technical fault qualifies for compensation—a decision that could set precedents for future outages across the DeFi sector.
