On September 7th, Binance announced on its official website the "Explanation and Solution for the CYBER Earning Event". The announcement stated that on August 31st, 2023, due to Upbit only supporting the CYBER token (ERC20) issued on the Ethereum network and not supporting the CYBER (BEP20) issued on the BNB Smart Chain network, and at the time the project did not have a cross-bridge solution, combined with price differences between Upbit and other platforms, Binance and other trading platforms simultaneously experienced a shortage of liquidity for CYBER (ERC20).
Due to the price difference and the rapid rise in CYBER price, a large number of cross-platform trading users began to borrow and trade, leading to a surge in CYBER borrowing demand. At this time, the platform temporarily suspended borrowing and lending risk control, and raised the borrowing and lending interest rate. Because Binance's borrowing and lending fully adhere to the principle of real coins and real borrowing, although it reserved redemption reserves and made corresponding adjustments, it was not enough to cope with a large number of redemption requests in the short term under extreme market conditions.
After the CYBER financial management product is launched, Binance will take out all the earnings (871 CYBER) and an additional budget totaling 800,000 USDT to subsidize users. From 8:00 on August 29th to 8:00 on September 5th (GMT+8), 887 users who failed to redeem CYBER on the CYBER earning platform during this period will receive subsidies based on their daily average CYBER holding ratio. Other CYBER depositors on the earning platform during this period will share the 200,000 USDT equivalent CYBER regular experience coupons provided by the CyberConnect Foundation.
