Ethereum-Based Decentralized Exchange dYdX Suffers $9,000,000 Loss in an Alleged ‘Market Manipulation Attempt’ - The Daily Hodl
The Daily Hodl
20 Nov 2023 5:55 PM
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.
You May Ask
What is the name of the decentralized exchange that suffered the loss?How much money was used from the insurance fund to cover the losses?Were customer funds affected by the market manipulation attempt?Who does the founder of dYdX believe orchestrated the manipulation attempt?What measures is dYdX taking to prevent similar incidents in the future?