dYdX raises margin requirements in some markets, bans “highly profitable trades”


Decentralized crypto change dYdX has disclosed new measures to mitigate trading-related dangers after burning $9 million of its insurance fund on Nov. 17 to cowl customers’ losses.

In keeping with an announcement on X (previously Twitter), the change elevated margin necessities on a number of “much less liquid markets,” affecting tokens similar to Eos (EOS), 0x Protocol (ZRX), Aave (AAVE), Algorand (ALGO), Web Pc (ICP), Monero (XRM), Tezos (XTZ), Zcash (ZEC), SushiSwap (SUSHI), THORChain (RUNE), Synthetix (SNX), Enjin (ENJ), 1inch Community (1INCH), Celo (CELO), Yearn.finance (YFI), and Uma (UMA).

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dYdX triggered its insurance coverage fund to cowl customers’ buying and selling losses on Nov. 17 after a worthwhile commerce focusing on lengthy positions on the YFI token precipitated the liquidation of positions price almost $38 million.

dYdX founder Antonio Juliano dubbed the transfer a “focused assault” on the change. In keeping with him, YFI’s open curiosity in dYdX spiked from $0.8 million to $67 million in a matter of days because of the actions of 1 particular person. The identical particular person, based on Juliano, tried to assault the SUSHI market on dYdX a couple of weeks earlier.

“We did take motion to extend preliminary margin ratios for $YFI previous to the worth crash, however this was finally not ample. The actor was in a position to withdraw a very good quantity of $USDC from dYdX proper earlier than the worth crash,” he wrote.

On X, the change’s workforce mentioned that “extremely worthwhile buying and selling methods have now been banned on dYdX,” in a reference to the language used by Mango Markets’ exploiter Avraham Eisenberg in his $116 million assault of 2022.

dYdX is now providing a bounty cost in change for helpful info:

The YFI token declined by 43% in just a few hours on Nov. 17 after hovering over 170% in November. The sharp decline worn out over $300 million in market capitalization from the latest beneficial properties, according to knowledge from CoinMarketCap. Up to now 30 days, nonetheless, the token has nonetheless gained over 90%, buying and selling at $9,190 on the time of writing.

The Yearn.finance workforce hasn’t disclosed any official particulars concerning the incident. A supply accustomed to the matter instructed Cointelegraph that builders on the workforce don’t management the vast majority of the token provide, strongly refuting preliminary issues a couple of potential rip-off. The declare is supported by Etherscan knowledge showing massive centralized exchanges as YFI prime holders.

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