Binance: Affected users from the CYBER earning event will receive a total subsidy worth 1 million USDT

ChainCatcher message, Binance released an announcement titled "Explanation and Solution Regarding the CYBER Earning Coin Incident." The announcement states that on August 31, 2023, Upbit only supports CYBER tokens issued on the Ethereum network (ERC20) and does not support CYBER issued on the BNB Smart Chain network (BEP20). At that time, the project team did not have a cross-bridge solution, and due to the price difference between Upbit and other platforms, both Binance and other trading platforms experienced a lack of liquidity for CYBER (ERC20).

Due to the price difference and the rapid increase in CYBER prices, a large number of cross-platform trading users began borrowing coins for trading, leading to a surge in demand for CYBER lending. At this time, the platform's risk control for borrowing coins was triggered, and the lending rates were raised. Since Binance's lending fully adheres to the "real coins for real borrowing" principle, although it reserved redemption funds and made corresponding adjustments, it was still insufficient to cope with a large number of redemption requests in a short period during extreme market conditions.

In response to this CYBER incident, Binance stated that it would allocate all earnings from the CYBER financial products launched (871 CYBER) and an additional budget totaling 800,000 USDT to subsidize users. During the period from August 29, 2023, 08:00 to September 5, 2023, 08:00, the 887 users who failed to redeem CYBER on the earning platform will receive subsidies based on their daily average CYBER holding ratio.

During this period, other CYBER deposit users on the earning platform will equally share the 200,000 USDT equivalent CYBER time-limited experience vouchers provided by the CyberConnect Foundation.