The good, the bad, and the brutal from today’s mega crash 🧵
1️⃣ Infrastructure held strong.
@MultiversX chain performed flawlessly, shard 1 had full blocks and gas prices climbed fast “thanks” to bot activity.
XOXNO automatically increased gas on all UI transactions, so over 90% of user transactions cleared quickly without getting stuck.
2️⃣ xLend’s oracle system was rock solid.
Off-chain feeds kept updating every second, even during the $3 flash crash.
The deviation checks against @xExchangeApp worked perfectly, stopping fake $3 liquidations.
Real liquidation prices kicked in around $9, saving users and the protocol from massive bad debt.
Now the bad part.
$EGLD still dropped 35–40% even after recovery, wiping out many positions.
Some bad debts hit $300–700, partially socialized and partially covered by protocol revenue.
Final numbers will settle once all liquidations complete in the morning or when they become profitable again OR market recovers more for $EGLD and they are not needed anymore.
On top of that, XOXNO experienced a wave of DDoS-style traffic from bots hammering our APIs and UI to fetch liquidation info instead of computing it themselves, hurting actual users trying to liquidate from UI.
It caused short moments of lag but was resolved after blocking the worst spammers and adding more aggressive rate limits.
And the ugly truth
Low liquidity made liquidations inefficient.
Price impact was heavy, arbitrage bots were asleep, and CEX markets froze for a while.
That left LSD pools and on-chain pegs out of sync, with no quick arbitrage to rebalance.
Takeaway:
Infrastructure and risk design worked up to the brutal unstoppable dump that by design put everything in bad position no time to intervene before 🥲
Liquidity didn’t hold up to streamline the liquidations opportunities
—————-
Time for a nap, brutal times + post covid sickness requires fresh energy 🫡
846
0
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.