- Binance will compensate users affected by platform issues during the recent crypto market crash.
- USDe WBETH and BNSOL sharply depegged due to trading delays and loss of market maker access.
- Binance plans new pricing methods and risk controls to prevent future wrapped token crashes.
Binance will compensate users affected by a major selloff that disrupted trading late Friday. The sudden crash caused several wrapped tokens, including Ethena’s USDe, to depeg sharply from their intended values. The incident followed a wave of liquidations triggered by new tariffs announced by former President Trump.
The trading platform experienced delays and reduced performance. As market volatility intensified, users faced issues processing transactions. Binance confirmed the platform strain led to losses that were not solely due to market fluctuations.
Wrapped Tokens Fell Below Peg
Three key assets lost their price peg: USDe, Binance’s BNSOL, and Wrapped Beacon ETH (WBETH). USDe dropped to $0.66, well below its $1 target. WBETH fell to $430, nearly 88% below the ETH market price. BNSOL also plunged, reaching as low as $34.90 during the selloff.
These tokens are designed to track their underlying assets closely. But as infrastructure slowed, arbitrage failed. Market makers could not access markets to correct prices. This created a sharp price divergence. The liquidity gap added to user losses.
Compensation Details Announced
Binance confirmed case-by-case compensation for users affected by platform-related issues. The company stated that losses from typical market movements will not qualify. Only those impacted by technical problems during the crash can receive payouts.
Eligible users include those who used USDe, WBETH, or BNSOL as collateral between 21:36 and 22:16 UTC on October 10. The payout will reflect the difference between the liquidation price and the market price at 00:00 UTC on October 11. Payments will be credited within 72 hours.
Those with losses outside the specified window can still seek review. Wealth management users tied to affected tokens will receive gradual compensation. The platform will also evaluate latency-related losses individually.
Platform Adjustments to Prevent Recurrence
To avoid similar events, Binance has started technical changes. The exchange will now price wrapped assets using a conversion ratio. This reflects the actual amount of underlying assets rather than market trades during stress periods.
It also added the redemption price to index weights for BNSOL, WBETH, and USDe. Binance will implement a price floor for USDe to enhance stability. The company plans more frequent reviews of risk parameters.
The broader crypto market lost over $670 billion in value. More than 1.7 million traders were liquidated in 24 hours. Binance alone recorded $2.4 billion in erased positions. The exchange said it remains focused on improving transparency and user support.
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