Yes

>>Binance will reimburse users impacted by the recent price drops of wBETH, BNSOL, and Ethena’s USDe.

Binance will reimburse users impacted by the recent price drops of wBETH, BNSOL, and Ethena’s USDe.

crypthub

1 day ago

Binance Compensation & Market Disruption

Binance has announced voluntary compensation for users who experienced losses due to recent platform disruptions affecting wBETH, BNSOL, and USDe. Yi He, co-founder and chief customer officer, apologized for the issues and urged affected users to contact customer service to register their cases. The exchange will review account activity on a case-by-case basis, but losses stemming from market fluctuations or unrealized profits won't be eligible for compensation.

The Cause of the Price Crash

The rapid price drops in tokens like wBETH and BNBSOL occurred due to increased market volatility and liquidations stressing Binance’s infrastructure. These wrapped tokens are meant to closely track the price of their underlying assets, but stressed infrastructure prevented arbitrageurs from efficiently maintaining this alignment. The inability of market makers to participate created a liquidity vacuum, mirroring the portfolio insurance issues of 1987.

Impact on Market Making

Binance’s significant share of global spot trading volume makes its infrastructure vital for market makers. When market makers are unable to access Binance, they are hindered in hedging positions and obtaining price data, making it risky to provide bids for tokens. This lack of participation exacerbated the price declines and prevented a return to normal price levels.

Corrective Actions & Future Pricing

Binance has implemented a change to conversion-ratio pricing for wrapped assets. This new pricing method relies on the underlying staking ratio instead of volatile spot market trades. The shift is intended to provide a more stable and accurate valuation during periods of market stress and limit future price misalignment.