Aster Makes up for Liquidation Glitch, Reimburses Affected Users

3 hours ago by · 2 mins read

Aster has compensated all traders who were impacted by the sudden spike in its XPL perpetual contract.

All traders who were affected by an abnormal price movement in Aster’s XPL perpetual contract have been reimbursed.

The reimbursement was done in Tether’s USD-pegged stablecoin USDT. Aster did not reveal the total amount of liquidations that it compensated impacted traders for.

Aster Resolves Sudden XPL Perpetual Contract Price Spike

According to the decentralized perpetuals exchange, which is backed by Changpeng Zhao-linked YZi Labs, these traders were fully compensated for the shortfall. The sharp price rally happened around 11 p.m. UTC on September 25. From the $1.30 price level that was seen on other exchanges, the price of XPL climbed to more than $4.

Soon after the sharp spike, Aster took to X to say that it was aware of unusual price movements on the XPL perpetual pair and assured users that funds are secure, with a full review underway and compensation for any losses.

It is worth noting that the XPL perpetual contract is the newly-launched token of the stablecoin-focused Layer 1 Plasma.

Some users suspect that the issue came from a temporary price safeguard removal following Plasma’s XPL token launch. Not too long after, Aster notified the public that the issue had been resolved.

In addition, it stated that all users who were impacted by the incident and liquidated would have their losses calculated and reimbursed in USDT.

It will then be sent directly to their wallets. Three hours later, the distribution of the liquidation compensation had commenced, per the information shared by the project. Another round of compensation also followed to cover related trading and liquidation fees.

ASTER Price Follows a Massive Downtrend

In the wake of these incidents, Aster has seen the price of its native token ASTER drop by more than 11%.

The coin is currently trading at $1.80, corresponding with an 11.77% decline over the last 24 hours. Similarly, its market capitalization and 24-hour trading volume are equally in the red zone.

ASTER had earlier surged to new heights after CEO Leonard announced some of the project’s ambitious plans, which include a proprietary Layer-1 blockchain, potential Binance listing, and a buyback program.

On September 24, it hit a new all-time high (ATH) at $2.34 before retracing slightly to $2.27. Its current price level marks a further downtrend.

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