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BitMEX Reveals How It Prevented Tons of XRP Liquidations During Major Crash

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This BitMEX safeguard has prevented a slew of XRP liquidations on one of the cryptocurrency’s darkest days-

In its recent blog post, cryptocurrency derivatives exchange BitMEX touted its index protection parameter that made it possible to avert a string of liquidations during the violent XRP sell-off that took place on Feb. 1.

Back in December, BitMEX updated its index protection rules to prevent price swings from having an outsized influence on the market.

BitMEX notes that there was a deviation of up to 12 percent between the price of the token on Binance and other cryptocurrency exchanges that constitute the index.

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If there had not been any safeguards in place, XRP would have moved over seven percent, thus triggering a string of liquidations. Instead, the price remained steady because the faulty move was taken out of the equation.

BitMEX

Image by blog.bitmex.com

A constituent gets excluded from the index in case of a volatile move of more than 10 percent:

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For indices with 3 or more constituents: if a constituent price differs from the median constituent price for that index by 10% or more, it is excluded from the index calculation.

The fair price of indexes with only one constituent is determined based on the last calculated price following a whippy double-digit move:

Parameter safeguards are highly technical—some would say boring—parts of how we track the true market price of underlying instruments. But there’s nothing boring about keeping positions intact when whippy moves happen elsewhere.

BitMEX is no longer the king of liquidations

As reported by U.Today, the XRP cryptocurrency experienced a stupendous crash earlier this week on the same day it soared to its multi-month high. This is widely believed to be caused by unscrupulous actors artificially pumping the token.

According to Bybt data, BitMEX is currently the fourth-largest exchange by total liquidation volume of XRP after Binance, FTX and Bybit.

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While the whole industry went through a historic growth cycle in 2020, BitMEX had a rough year. After nearly driving Bitcoin to zero with cascading liquidations during “Black Thursday” of March 13, BitMEX then faced CFTC charges in October while CEO Arthur Hayes and other cofounders appeared in the DOJ’s crosshairs.

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Binance

Binance’s Trading Volume Hits $100 Billion in Just One Day

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Binance continues to see unprecedent trading activity while attempting to sail through regulatory hurdles

Binance’s daily volume hit an eye-popping $100 billion on Oct. 20, according to a tweet by CEO Changpeng Zhao.

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The leading crypto exchange recorded this crucial milestone on the day Bitcoin, the largest cryptocurrency, reached a new all-time high of $67,276.

Despite introducing stricter measures for users due to severe regulatory scrutiny, Binance enjoys a comfortable lead over other crypto exchanges in both spot and derivatives trading, according to data provided by CoinMarketCap.

Eerier this month, the trading platform also announced a $1 billion ecosystem fund.         

Meanwhile, the decentralized finance sector is catching up with centralized behemoths. The total value locked in DeFi protocols has hit $100 billion for the first time.

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Crypto Exchange

Binance Smart Chain DeFi protocol PancakeHunny suffers flash loan attack

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As the users argue “what’s better,” Ethereum or Binance Smart Chain, the latter saw another decentralized protocol being exploited. PancakeHunny on BSC was attacked by a flashloan and no, this wasn’t a first for the protocol.

Blockchain security and data analytics company Peckshield Inc. announced the attack on Twitter.

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The last time that this protocol was exploited, was in June, wherein the team had noted the creation of a smart contract to exploit the Hunny Minter Smart Contract. The contract was subsequently executed 91 times, as per the team.

The team took a long time to respond to the hack this time but assured the users that their funds were safe. The team added in a preliminary report,

“On 20 October 2021, at 0920 UTC. A smart contract was created to exploit the Hunny TUSD vault. The Contract was subsequently executed 26 times.”

PeckShield provided some details about the same noting,

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According to the agency, this hack was possible due to a profit inflation bug, which converts the relatively small amount of harvested ALPACA, to a large amount of TUSD for staking. PeckShield added,

“These converted TUSDs are then counted as profit, now inflated to mint large amount of $HUNNY!”

Source: Twitter

Actions taken by the team

The PancakeHunny team has stopped the minting process for the TUSD vault while assuring that funds in Hives were all SAFE. The exploit did not affect other Hives and Vaults but the price of HUNNY.

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They added that the issue has been identified and the team will change its rooting to higher liquidity pools to prevent the aftereffects of price manipulation of LP pools.

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Coinbase

NBA Makes Coinbase Its Exclusive Crypto Partner

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Coinbase has joined FTX in scoring major partnerships in the sports industry     

The National Basketball Association has announced a multi-year deal with Coinbase, America’s biggest crypto trading platform in an Oct. 19 press release.   

Coinbase will act as the exclusive partner of the NBA, NBA G League, Women’s National Basketball Association (WNBA), and other leagues. 

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As part of the deal, the exchange will have a brand presence during televised games as well as unique content and activations that are meant to boost crypto awareness.  

Kate Rouch, Coinbase’s chief marketing officer, says that the company is proud of joining forces with the NBA:

The freedom to participate and benefit from the things you believe in is at the heart of Coinbase’s mission.  Nobody believes this more than NBA and WNBA fans. We’re proud to become the Leagues’ official cryptocurrency partner.

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The shares of Coinbase are up roughly 3% at press time. 

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