🚨 Binance spent $283M to compensate users after a "horrific depeg"
📍On the night of 10/10, an internal pricing error (oracle) on Binance caused a number of assets such as wBETH, BNSOL, USDe to temporarily lose peg, resulting in significant losses for Futures, Margin, and Loan users who used these tokens as collateral.
📌 Binance confirmed that this was an internal system error, unrelated to market fluctuations. The total amount spent by the exchange to compensate users reached $283M, applicable to affected positions within the time frame of 21:36 – 22:16 UTC.
📌 Cases eligible for compensation include:
- Users who were liquidated or directly suffered losses due to incorrect oracle pricing.
- Positions using wBETH, BNBSOL, USDe as collateral.
➡️ Losses due to natural market fluctuations or unrealized profits are not eligible for compensation.
📌 Binance has also implemented a series of new technical measures to prevent recurrence:
- Switching to external oracles to ensure more objective data.
- Adding redemption prices and soft floor mechanisms for collateral assets.
- Tightening risk monitoring systems and price data audit processes.
💭 The fact that #Binance proactively spent over $283M reflects its efforts to protect users and maintain trust after a major shock. However, this also serves as a warning to the entire market about systemic concentration risks – when just a small error in an internal oracle can lead to hundreds of millions of USD in damages within minutes.
📍On the night of 10/10, an internal pricing error (oracle) on Binance caused a number of assets such as wBETH, BNSOL, USDe to temporarily lose peg, resulting in significant losses for Futures, Margin, and Loan users who used these tokens as collateral.
📌 Binance confirmed that this was an internal system error, unrelated to market fluctuations. The total amount spent by the exchange to compensate users reached $283M, applicable to affected positions within the time frame of 21:36 – 22:16 UTC.
📌 Cases eligible for compensation include:
- Users who were liquidated or directly suffered losses due to incorrect oracle pricing.
- Positions using wBETH, BNBSOL, USDe as collateral.
➡️ Losses due to natural market fluctuations or unrealized profits are not eligible for compensation.
📌 Binance has also implemented a series of new technical measures to prevent recurrence:
- Switching to external oracles to ensure more objective data.
- Adding redemption prices and soft floor mechanisms for collateral assets.
- Tightening risk monitoring systems and price data audit processes.
💭 The fact that #Binance proactively spent over $283M reflects its efforts to protect users and maintain trust after a major shock. However, this also serves as a warning to the entire market about systemic concentration risks – when just a small error in an internal oracle can lead to hundreds of millions of USD in damages within minutes.
