Binance Addresses CYBER Redemption Concerns

Binance Addresses CYBER Redemption Concerns

Binance Addresses CYBER Redemption Concerns

Recently, Binance addressed concerns about the redemption of CYBER Simple Earn Flexible Products.

The issue arose due to a significant price disparity between Upbit and other exchanges for CYBER.

With the price of CYBER soaring, arbitrage users began to borrow CYBER for their trading strategies, leading to a surge of loan requests for CYBER that triggered the risk management protocol on Binance.

Consequently, new loan requests were suspended, and loan interest rates were substantially increased.

Despite maintaining a maximum borrowing limit as a buffer for redemptions, the astronomically high volume of redemption requests could not be met promptly.

Binance will dynamically alter loan interest rates and increase risk management measures to improve the user experience.

Binance has also announced that 887 affected users who failed to redeem their CYBER Simple Earn Flexible Products positions between August 29, 2023, at 00:00 (UTC) and September 5, 2023, at 00:00 (UTC) will receive a portion of 800,000 USDT tokens and 871 CYBER.

Simple Earn has earned a total of 871 CYBER since the introduction of CYBER products on its platform.

The distribution will be based on these users’ daily average position in CYBER Simple Earn Flexible Products relative to the total magnitude of all eligible users’ positions.

All other users who held CYBER Simple Earn Flexible Products positions during the aforementioned period will also receive an equal share from a total pool of 200,000 USDT worth of CyberConnect Foundation-sponsored CYBER Locked Trial Fund vouchers.

These will be distributed within two weeks of the announcement’s publication.

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