Binance has restored trust after a market crash caused wrapped assets like wBETH, BNSOL, and USDe to lose value. The exchange announced a $283 million compensation plan for affected users, following disruptions on Friday that sparked widespread losses.
The issue hit Binance Earn markets tied to Ethena’s stablecoin USDe, Solana’s BNSOL, and Ethereum’s wrapped token wBETH, all of which briefly lost their peg.
Binance said it’s paying back users who traded on futures, margin, and loan markets using the affected tokens as collateral. The losses happened between 21:36 and 22:16 UTC. The exchange also said people who lost money through Earn redemptions or internal transfers will be compensated. Binance Co-Founder Yi He publicly apologized, saying the platform struggled under “significant market fluctuations and a substantial influx of users.”
Infrastructure strain and market breakdown
During the Friday crash, Binance’s systems came under heavy pressure, making it hard for traders and market makers to access the platform. As a result, the wrapped tokens lost track of their actual asset values. “When they can’t access Binance… they’re flying blind,” AltLayer Founder YQ Jia explained. He compared the situation to the 1987 portfolio insurance crisis, where automated mechanisms amplified sell pressure.
Moreover, the glitch sent USDe’s price tumbling below $0.66, even though it stayed stable on other exchanges. Ethena Labs CEO Guy Young defended the project, saying, “It is not accurate to describe this as a USDe depeg when a single venue was out of line.”
Binance adjusts pricing and fixes errors
To avoid similar issues, Binance rolled out a new pricing system based on each wrapped token’s real value. The model links wBETH’s value to its underlying ETH ratio instead of volatile spot trades. The exchange also added redemption prices to its index weights and installed a soft price floor for USDe.
Besides, Binance addressed sharp price swings in tokens like IOTX and ATOM. The exchange blamed outdated limit orders and display errors for the anomalies. According to CoinMarketCap, Binance’s native token BNB was trading at $1,315, up 14.42% in the last 24 hours.
Also Read: Bitcoin and Ethereum Price Surge After Historic Single-Day Crash
