dYdX raises margin requirements in some markets, bans “highly profitable trades”
DEX dYdX announced measures to mitigate trading-related risks after burning $9 million of its insurance fund in an alleged "targeted attack." ...
- Decentralized crypto exchange dYdX has implemented new measures to mitigate trading-related risks after burning $9 million of its insurance fund to cover users' losses.
- The exchange increased margin requirements on several "less liquid markets," affecting tokens such as EOS, ZRX, AAVE, ALGO, ICP, XRM, XTZ, ZEC, SUSHI, RUNE, SNX, ENJ, 1INCH, CELO, YFI, and UMA.
- The insurance fund was triggered after a profitable trade targeting long positions on the YFI token caused the liquidation of positions worth nearly $38 million.
- dYdX founder Antonio Juliano referred to the incident as a "targeted attack" and stated that the same individual had attempted to attack the SUSHI market on dYdX previously.
- Highly profitable trading strategies have been banned on dYdX, following the language used by the exploiter of Mango Markets' $116 million attack in 2022.
- dYdX is offering a bounty payment for valuable information.
- The YFI token experienced a sharp decline of 43% on November 17, wiping out over $300 million in market capitalization, but it has still gained over 90% in the past 30 days.
The sentiment of the article is mostly negative, focusing on the risks and losses experienced by dYdX and its users due to a targeted attack and the subsequent decline in the YFI token's value.