Wintermute: During the "10.11" Flash Crash Event, the DeFi Market Experienced Severe "Insufficient Liquidity" Issue

BlockBeats News, October 20th, Evgeny Gaevoy, founder of the crypto market maker Wintermute, stated during The Block's podcast that during the "10/11" crash event, the DeFi market experienced a severe inventory issue. He said, "Our position was on Binance, but we couldn't transfer it out, so we sold everything available on DeFi, and bought everything available on Binance, but couldn't complete the asset transfer, leading to a liquidity imbalance."

Gaevoy mentioned that although arbitrage could be done through borrowing or cross-market pricing, the risks were high and the operations were complex. During this event, many competitors' risk control systems triggered circuit breakers, pausing DeFi transactions. Nevertheless, he expressed satisfaction with his team's performance, saying, "Although we could have made more money, we did indeed run out of inventory."