Paradex Chain Protects User Funds With Extra Safety Measures: Details - U.Today

• Paradex rolls back chain following the API glitch
• $650,000 compensation initiative covers users’ losses Paradex, a non-custodial perps cryptocurrency exchange, decided to roll back its own L2 blockchain following an API glitch

The measure is taken to ensure the maximum level of protection for all users’ funds. Also, to compensate customers affected by the recent liquidations cascade, the exchange is kicking off a massive reimbursement program.

Paradex rolls back chain following the API glitch

According to the official statement by the team of Paradex, a high-performance crypto perpetuals trading engine, its associated blockchain, Paradex Chain, was rolled back by validators.

This emergency measure is set to get the blockchain network back to its status prior to API issues caused by database migration. To execute this seamlessly, Paradex validators agreed to restore accounts to the pre-issue status quo.

The emergency chain upgrade was successfully organized on Jan. 20, which resulted in the six-hour pause in blockchain availability.

The team assured that at no stage of the event or its resolution, were customers’ funds ever at risk. Paradex Chain’s tech experts are now working on a detailed post-mortem and root causes analysis for the incident.

$650,000 compensation initiative covers users’ losses

As covered by U.Today previously, as a result of API glitch, the price of Bitcoin (BTC) on Paradex platform briefly crashed to zero. This caused a cascade of long liquidations. The unforeseen issues associated with database migration were identified as key accident causes.

Within a few hours of the emergency rollback, the exchange team announced the large-scale compensation program.

As a result, a total of $650,000 was distributed between 200 affected accounts, while the operations of some elements of Paradex’s architecture were temporarily halted.

Paradex is a reliable zero-fee perps DEX platform based on its own EVM-compatible layer-2 blockchain Paradex Chain

It offers 450 perpetual contracts, with daily trading volume exceeding $1.5 billion in equivalent. Twenty-four-hour open interest on Paradex exceeds $700 million, with BTC-USD, ETH-USD, SOL-USD perps trading contracts responsible for over 60% of total open interest.