The decentralized derivatives exchange dYdX has approved a compensation plan for traders affected by liquidations during a chain outage on October 10, 2025. The Liquidation Rebates Pilot Program, with a total reward pool of up to $1 million, was approved via a governance vote and will run for one month starting December 1, 2025.
The outage, which halted operations for about eight hours, resulted from a misordered code process and was exacerbated by delays in validators restarting oracle services, leading to stale oracle data and incorrect price processing. This event caused approximately $19 billion in liquidated positions, marking one of the largest liquidation events in crypto history.
The governance vote saw a 63.09% turnout, with 77.34% in favor, 2.55% against, and 20.11% abstaining, involving 32 out of 42 Active Set validators and 112 accounts. Antonio Juliano, Founder and CEO of dYdX Labs, stated, "The governance vote has paved the way for our Liquidation Rebates Pilot Program, exemplifying the strength of community involvement in our decision-making processes."
This initiative contrasts with centralized exchanges like Binance, which responded to the same market crash with a $728 million relief package but did not assume liability for losses. dYdX's move underscores the growing emphasis on risk management and user protection in decentralized finance (DeFi).
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