Ethereum-Based Decentralized Exchange dYdX Suffers $9,000,000 Loss in an Alleged ‘Market Manipulation Attempt’ - The Daily Hodl
An Ethereum-based (ETH) decentralized exchange (DEX) has suffered millions of dollars in losses after an alleged market manipulation attempt by a rogue user....
- An Ethereum-based decentralized exchange (DEX) called dYdX has experienced a loss of $9 million due to an alleged market manipulation attempt.
- The loss was covered by the dYdX v3 insurance fund, which still has $13.5 million remaining.
- No customer funds were affected by the incident.
- The founder of dYdX believes that the manipulation attempt was orchestrated by a well-capitalized actor(s) to drain funds from the insurance pool.
- As a response, dYdX is increasing margin requirements for its less liquid trading pairs.
The article discusses a negative event where a decentralized exchange suffered a significant loss due to market manipulation. However, it also highlights that customer funds were not affected and the exchange is taking measures to prevent similar incidents in the future.