Wanted to give my side/thoughts. I’ve been trading on Perp fora couple months and hodling the Perp token (now staking) for even longer. I’m a big believer of DEXs and decentralized derivative platforms and I feel in the long term, these are ideas of the future. PP has been a project that I looked to use/invest in for the super long term.
For my trading positions, I always use leverage with quite low multiple. In addition, I have multiple positions open across different tokens (at the time of the crash I had a long Sushi position and additional margin parked in there). Most of my money is parked across these various positions and I adjust accordingly. For ex: during the mid-Feb dip where ETH went from 2000 → 1300, I was actively looking at my positions and adjusting margins. Thus my liquidation price for ETH was set around 930.
During the flash crash, I was also monitoring my positions actively. As I saw Eth continue it’s non-stop drop, I began trying to adjust my positions. However, due to UI issue and lag, not a single transaction would go through. I tried to remove my excess margin in my Sushi position to put into Eth, but every transaction kept failing. I changed xDai nodes multiple times with no improvement. For around 20 mins, I continued to try until I saw my position liquidated at ~930.
During the previous flash crash, I was not one of the affected users but I voted to reimburse them. This is because I think it’s important to realize users are ultimately what makes a dapp. I felt it was important to maintain user confidence in the middle of a bull run and growing userbase potential. Given that there is even more attention on this PP flash crash on Twitter, it would not be ideal to scare away potential new users of this wave of crypto and potential investors of the Perp token.
Regardless, I can see that the team is stressed out by these unexpected circumstances and I would like to tell them: “this too shall pass”. As much as I hate the situation, all I hope we can do now is try our best to help those who were affected and continue to build to prevent this from happening again. I wish the community can see that not all of us who were liquidated were just reckless gamblers but many of us could not do anything to stop this at the time.