dYdX raises margin requirements in some markets, bans “highly profitable trades”


Decentralized crypto alternate 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.

According to an announcement on X (previously Twitter), the alternate elevated margin requirements on a number of “less liquid markets,” affecting tokens equivalent to Eos (EOS), 0x Protocol (ZRX), Aave (AAVE), Algorand (ALGO), Internet Computer (ICP), Monero (XRM), Tezos (XTZ), Zcash (ZEC), SushiSwap (SUSHI), THORChain (RUNE), Synthetix (SNX), Enjin (ENJ), 1inch Network (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 profitable commerce concentrating on lengthy positions on the YFI token brought on the liquidation of positions price almost $38 million.

dYdX founder Antonio Juliano dubbed the transfer a “focused assault” on the alternate. According to him, YFI’s open curiosity in dYdX spiked from $0.8 million to $67 million in a matter of days on account of the actions of 1 particular person. The identical particular person, in accordance with Juliano, tried to assault the SUSHI market on dYdX a number of 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 alternate’s workforce mentioned that “extremely profitable 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 cost in alternate for invaluable info:

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 current beneficial properties, according to knowledge from CoinMarketCap. In the previous 30 days, nevertheless, the token has nonetheless gained over 90%, buying and selling at $9,190 on the time of writing.

The Yearn.finance workforce hasn’t disclosed any official particulars in regards to the incident. A supply accustomed to the matter informed Cointelegraph that builders on the workforce don’t management nearly all of the token provide, strongly refuting preliminary issues a couple of potential rip-off. The declare is supported by Etherscan knowledge showing giant centralized exchanges as YFI prime holders.

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