Crypto exchange dYdX increases margins after $9m loss
Decentralized cryptocurrency exchange dYdX has introduced new measures to reduce trading risks after burning $9 million of its insurance fund on Nov. 17 to cover users’ losses.
According to the statement, the crypto exchange has increased margin requirements in several “less liquid markets.”
This affected the following tokens: 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), Uma (UMA).
dYdX introduced its insurance fund to cover user losses on Nov. 17. Before this, a profitable trade targeting long positions in the YFI token resulted in nearly $38 million in positions being liquidated.
dYdX founder Antonio Giuliano called the move a “targeted attack” on the exchange.
The Yearn.finance team did not disclose any official incident details. Arkham Intelligence specialists noted that the YFI price drop of approximately 40% that occurred the day before led to the liquidation of positions on dYdX for $50 million.
Experts noted that YFI is rarely traded on dYdX, but the sharp price surge over the past few days has led to open interest peaking at $60 million. The value was half of the total for the asset.
