BlockBeats News, October 15, Lighter stated that a special reward is being distributed, totaling 250,000 points, to compensate traders affected by the market crash on October 10. The second season rewards will be distributed every Friday starting from October 17, with an initial reward of 600,000 points to cover compensation for the past 2.5 weeks.
The affected users are mainly divided into three categories responsible for these issues:
Exchange Performance Degradation: Occurred in the hours leading up to the market crash on October 10. During this period, traders suffered a total loss of approximately $25 million, hence 150,000 points will be distributed as compensation. Additionally, the liquidation fees will also be refunded in USDC.
Market Crash: At that time, the exchange system was functioning normally, but LLP holders suffered a loss of about 5%. Although the system was performing normally, we still partially take responsibility as some LLP participants had a lack of understanding of LLP’s role in providing liquidity and its mechanism as a last resort liquidity source when needed. It has been clarified through in-depth analysis how LLP operates, and LLP holders will receive 25,000 points as compensation.
Database Failure After Market Calm: 5 hours after the market crash, the database used for the sequencer failed (refer to the incident report on October 12), causing Lighter to be offline for 4.5 hours. During this period of relatively stable market conditions, traders suffered a total loss of $7 million. Compensation for this period will be 75,000 points, and the liquidation fees will also be refunded in USDC.
