Lighter, the second largest decentralized perpetual trade, was one in every of many platforms to expertise a platform outage through the October 10 cryptocurrency market flash crash. To compensate affected customers, Lighter distributed factors resulting in future token airdrops.
Reiter introduced the redemption plan on October 14, providing a 250,000 level discount to merchants affected by technical points with the platform throughout and after the crash.
Whereas factors could seem to be obscure compensation for misplaced funds, demand for Author Factors is excessive, reaching $100 per level on the OTC market earlier than Friday’s occasion. As of October sixteenth, the best bid was $81.
The staff has confronted some backlash over its compensation bundle, however whereas lighter merchants typically appear glad with the response, depositors within the platform’s lighter liquidity pool (LLP) are unimpressed.
Damaged down, merchants affected by the outage misplaced $25 million and obtained 150,000 factors, whereas the LLP traders suffered a 5% loss (roughly 21.5 million) however obtained solely 25,000 factors. The platform then suffered a sequencer failure following a crash, inflicting the dealer to lose one other $7 million and be compensated with 75,000 factors.
To summarize, Lighter customers misplaced roughly $50 million throughout platform downtime and obtained $20 million value of Lighter factors as compensation. After all, the OTC worth is simply an indicator and there’s no assure that the Lighter token will obtain the identical valuation after launch.
It is also value noting that a good portion of the $25 million misplaced within the crash through the outage was seemingly unrecoverable, as worth fluctuations have been so quick and violent that many merchants have been liquidated whether or not the platform was up or not.
Regardless of the setback, Reiter stays the second hottest PERP DEX in DeFi, trailing solely Hyper Liquid. The DEX nonetheless maintains a complete worth locked (TVL) of over $1 billion and processed $7.3 billion in quantity within the final 24 hours (in comparison with Hyperliquid’s $8.8 billion)
TVL and Perp Quantity Lightening – DeFiLlama
