Binance has released a notice acknowledging recent issues surrounding the redemption of CYBER Simple Earn Flexible Products and is taking action to address users' concerns. The platform detailed an incident that occurred on August 31, 2023, when a price discrepancy of CYBER between Upbit and other exchanges led to a liquidity crunch on the ERC20 version of the token. This event triggered Binance's risk management protocol, causing issues with the redemption of CYBER Simple Earn Flexible Products.
To enhance the user experience and prevent similar incidents, Binance plans to:
1. Increase Crypto Loans and Margin interest rates, as well as Simple Earn APR for applicable assets, during periods of high volatility.
2. Implement stricter risk management and review frameworks for tokens with smaller market caps and lower liquidity.
3. Display applicable risk warnings for specific tokens and conduct regular reviews of borrowing limits.
4. Require a second confirmation highlighting the risks before completing a subscription.
Binance will also distribute a total of 800,000 USDT to 887 impacted users who failed to redeem their CYBER Simple Earn Flexible Products positions, along with an additional 871 CYBER. Other users who held CYBER Simple Earn Flexible Products positions during the specified period will receive an equal share from a pool of 200,000 USDT worth of CYBER Locked Trial Fund vouchers, sponsored by the CyberConnect Foundation.
