dYdX Implements Risk Mitigation Measures Post Alleged Targeted Attack
The post dYdX Implements Risk Mitigation Measures Post Alleged Targeted Attack appeared on BitcoinEthereumNews.com.
The exchange has raised margin requirements for several tokens. dYdX would also no longer permit highly profitable trading strategies. dYdX, a decentralized cryptocurrency exchange, burned up $9 million of its insurance fund on November 17 to cover customer losses, prompting the exchange to announce additional procedures to reduce trading-related risks. The exchange has raised margin requirements for several tokens trading in “less liquid markets,” according to a post on Twitter. On November 17th, a lucrative transaction targeting long holdings on the YFI token led to the liquidation of positions worth roughly $38 million, triggering dYdX’s insurance fund to reimburse users’ trading losses. Ban on Highly Profitable Trading Strategies Antonio Juliano, the founder of dYdX, called it a “targeted attack” on the platform. According to him, YFI’s open interest in dYdX rose from $0.8 million to $67 million in a couple of days as a consequence of the acts of one person. According to Juliano, the same person had tried an assault on the SUSHI market on dYdX a few weeks before. Juliano stated: “We did take action to increase initial margin ratios for $YFI prior to the price crash, but this was ultimately not sufficient. The actor was able to withdraw a good amount of $USDC from dYdX right before the price crash,” he wrote. The exchange also announced that it would no longer permit highly profitable trading strategies. Additionally, dYdX is also providing bounties for useful information about the attacker. After increasing by almost 170% in November, the YFI token dropped around 40% from $15,570 to $8,654 in a matter of hours on the 17th. According to statistics from CoinMarketCap, the steep decrease wiped away gains of almost $300 million in market value. Highlighted Crypto News Today: Shiba Inu Burn Rate Spikes But Price Remains Stagnant Source: https://thenewscrypto.com/dydx-implements-risk-mitigation-measures-post-alleged-targeted-attack/
Filed under: News - @ November 19, 2023 10:24 pm