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 line with an announcement on X (previously Twitter), the change elevated margin necessities on a number of “much less liquid markets,” affecting tokens resembling Eos (EOS), 0x Protocol (ZRX), Aave (AAVE), Algorand (ALGO), Web Laptop (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).

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 induced the liquidation of positions price practically $38 million.

dYdX founder Antonio Juliano dubbed the transfer a “focused assault” on the change. In line 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, in accordance with Juliano, tried to assault the SUSHI market on dYdX just a few weeks earlier.

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

On X, the change’s group stated 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 fee in change for precious data:

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 positive factors, according to information from CoinMarketCap. Up to now 30 days, nevertheless, the token has nonetheless gained over 90%, buying and selling at $9,190 on the time of writing.

The Yearn.finance group hasn’t disclosed any official particulars concerning the incident. A supply aware of the matter informed Cointelegraph that builders on the group don’t management nearly all of the token provide, strongly refuting preliminary considerations a few potential rip-off. The declare is supported by Etherscan information showing massive centralized exchanges as YFI high holders.

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