Binance to Compensate Users After Crash in wBETH, BNSOL, USDe
Binance announced compensation for users who suffered losses due to platform disruptions that led to significant price drops in wrapped beacon ether (wBETH), Binance Staked SOL (BNBSOL), and Ethereum's synthetic dollar USDe.
Co-founder Yi He stated that compensation will be reviewed on a case-by-case basis, excluding losses from market fluctuations and unrealized profits.
wBETH price fell to $430, an 88% discount compared to the https://holder.io/coins/eth/-https://holder.io/coins/usdt/ spot price over $3,800 at the same time.
BNBSOL dropped to $34.90, trading below the Solana spot price, while USDe fell to 65 cents during the crash.
Explaining the Crash
Wrapped tokens like wBETH and BNBSOL are supposed to track their underlying assets closely.
Binance's infrastructure faced stress due to volatility, preventing market makers from maintaining price alignment.
Market makers couldn't access Binance to hedge positions, causing a liquidity vacuum and price crashes.
Corrective Measures
Binance shifted to conversion-ratio pricing for wrapped assets within 24 hours of the crash.
This change bases prices on the underlying staking ratio rather than volatile market trades, aiming for stable valuations during market stresses.
