The dYdX community has approved a plan that was proposed in late November 2025 called the Liquidation Rebates Pilot Program. It has been touted as a reward system expected to mitigate the blowback from future liquidations, thereby encouraging liquidity and risk management. According to a recent X post from dYdX, the plans for compensation have […]The dYdX community has approved a plan that was proposed in late November 2025 called the Liquidation Rebates Pilot Program. It has been touted as a reward system expected to mitigate the blowback from future liquidations, thereby encouraging liquidity and risk management. According to a recent X post from dYdX, the plans for compensation have […]

dYdX community introduces a Liquidation Rebates Pilot Program with a total reward pool of up to $1 million for liquidated traders

2025/11/30 23:35
3 min read

The dYdX community has approved a plan that was proposed in late November 2025 called the Liquidation Rebates Pilot Program. It has been touted as a reward system expected to mitigate the blowback from future liquidations, thereby encouraging liquidity and risk management.

According to a recent X post from dYdX, the plans for compensation have been approved via a governance vote and will be viewed as a measured experiment, which means it could still be refined further. 

The post revealed that 32 out of 42 Active Set validators and 112 accounts voted, with a 63.09% voting turnout in which there were 77.34% Yes votes, 2.55% No votes and 20.11% Abstain votes

dYdX approves plan to compensate liquidated tradersdYdX approved the Liquidation Rebates Pilot Program with a reward pool of up to $1 million for liquidated traders. Source: Mintscan

More about the plans for compensation 

The Liquidation Rebates Pilot Program proposes a one-month trial starting on December 1, 2025, that will reward traders who experience a liquidation event with points and rebates, with rewards capped at $1 million in total.

Eligible participants can accumulate the described rewards via the pilot’s structured framework, designed to provide tangible value to active traders while maintaining a transparent process. 

The scheme’s total incentive pool of up to $1 million has been praised as a measured approach to supporting liquidity and risk management within the platform. 

dYdX moves on from October network outage 

dYdX’s plans to compensate traders come after the exchange was affected by a chain halt that grounded operations for about eight hours amid last month’s market crash.

It was in the post-mortem and update that followed that the exchange first floated the idea of voting on compensating affected traders with up to $462,000 from the protocol’s insurance fund.

dYdX has claimed that the October 10 outage stemmed “from a misordered code process, and its duration was exacerbated by delays in validators restarting their oracle sidecar services.” 

According to the DEX, when the chain resumed, “the matching engine processed trades/liquidations at incorrect prices due to stale oracle data.”

It further reported that no user funds were lost on-chain; however, some traders suffered liquidation-related losses while services were grounded during the halt. dYdX is not the only exchange that has taken proactive steps following the October 10 market crash; Binance’s response to the turmoil has also been commended. 

The market crash, which wiped out roughly $19 billion in positions and was the largest liquidation event in crypto history, also tested Binance’s trading services as the exchange had to deal with surging volatility, user concerns, and regulatory attention.

It was called out for technical glitches that prevented traders from closing out positions, and there were also interface problems that showed several tokens priced below zero, and the depeg of Ethena’s USDe. 

Binance refused to assume any liability for traders’ losses. However, it announced a $400 million relief initiative for affected traders, including $300 million in token vouchers and $100 million for ecosystem participants who were affected.

Binance also launched a $45 million BNB token airdrop to memecoin traders that suffered losses during the crash to “boost market confidence.” In total, the exchange pledged $728 million for traders affected by the sell-off.

Join a premium crypto trading community free for 30 days - normally $100/mo.

Market Opportunity
dYdX Logo
dYdX Price(DYDX)
$0.1162
$0.1162$0.1162
+1.66%
USD
dYdX (DYDX) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

⁉️ Epstein, a convicted pedo, invested in Coinbase

⁉️ Epstein, a convicted pedo, invested in Coinbase

The post ⁉️ Epstein, a convicted pedo, invested in Coinbase appeared on BitcoinEthereumNews.com. The latest Epstein Files release has placed a variety of powerful
Share
BitcoinEthereumNews2026/02/07 04:07
How The ByteDance App Survived Trump And A US Ban

How The ByteDance App Survived Trump And A US Ban

The post How The ByteDance App Survived Trump And A US Ban appeared on BitcoinEthereumNews.com. WASHINGTON, DC – MARCH 13: Participants hold signs in support of TikTok outside the U.S. Capitol Building on March 13, 2024 in Washington, DC. (Photo by Anna Moneymaker/Getty Images) Getty Images From President Trump’s first ban attempt to a near-blackout earlier this year, TikTok’s five-year roller coaster ride looks like it’s finally slowing down now that Trump has unveiled a deal framework to keep the ByteDance app alive in the U.S. A look back at the saga around TikTok starting in 2020, however, shows just how close the app came to being shut out of the US – how it narrowly averted a ban and forced sale that found rare bipartisan backing in Washington. Recapping TikTok’s dramatic five-year battle When I interviewed Brendan Carr back in 2022, for example, the future FCC chairman was already certain at that point that TikTok’s days were numbered. For a litany of perceived sins — everything from the too-cozy relationship of the app’s parent company with China’s ruling regime to the app’s repeated floating of user privacy — Carr was already convinced, at least during his conversation with me, that: “The tide is going out on TikTok.” It was, in fact, one of the few issues that Washington lawmakers seemed to agree on. Even then-President Biden was on board, having resurrected Trump’s aborted TikTok ban from his first term and signed it into law. “It feels different now than it did two years ago at the end of the Trump administration, when concerns were first raised,” Carr told me then, in August of 2022. “I think, like a lot of things in the Trump era, people sort of picked sides on the issue based on the fact that it was Trump.” One thing led to another, though, and it looked like Carr was probably…
Share
BitcoinEthereumNews2025/09/18 07:29
Solana Crashes Below $100: Could $73 Be the Next Key Support?

Solana Crashes Below $100: Could $73 Be the Next Key Support?

Solana (SOL) slipped to $85.73 on Friday, February 6, 2026, marking a 26.49% decline over the past week, according to CoinMarketCap data. Trading volume surged
Share
Tronweekly2026/02/07 04:30