Binance addresses concerns over CYBER redemption, increases loan rates, and introduces risk management measures to improve user experience. Impacted users to receive a share of USDT tokens and CYBER.
Binance recently addressed concerns regarding the redemption of CYBER Simple Earn Flexible Products. The issue arose due to a large price discrepancy of CYBER between Upbit and other exchanges. With the price of CYBER soaring, arbitrage users started to borrow CYBER for their trading strategies, leading to a surge of loan requests for CYBER that triggered the risk management protocol on Binance.
As a result, new loan requests were halted, and loan interest rates were increased to a large extent. Despite maintaining a maximum borrowing limit as a buffer for redemptions, the exceedingly large volume of redemption requests could not be fulfilled immediately. Binance will adjust the loan interest rates dynamically and strengthen its risk management measures to foster a better user experience.
Binance has also announced that 887 impacted users who failed to redeem their CYBER Simple Earn Flexible Products positions between August 29, 2023, at 00:00 (UTC) and September 5, 2023, 00:00 (UTC) will receive a share of USDT tokens from a total pool of 800,000 USDT and an additional 871 CYBER.
The 871 CYBER is the total profits obtained by Simple Earn since CYBER products launched on the platform. The distribution will be based on these users daily average CYBER Simple Earn Flexible Products position in proportion to the total size of positions held by all eligible users. These will be distributed within seven working days of publishing this announcement.
All other users who held CYBER Simple Earn Flexible Products positions at any point during the mentioned period will also receive an equal share from a total pool of 200,000 USDT worth of CYBER Locked Trial Fund vouchers, which are sponsored by CyberConnect Foundation. These will be distributed within two weeks of publishing this announcement.