Paradex Rollback Timeline: Database Migration Error Leads to Large-Scale Liquidation, Perp DEX Centralization Risk Exposes Concerns

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January 20th — In the Starknet ecosystem, perpetual contract DEX Paradex announced temporary maintenance yesterday. However, the protocol failed to go live as expected after maintenance wrapped up, sparking community rumors of a major vulnerability. This led to liquidations for some users’ perpetual contracts due to abnormally high funding rates. Around 3:00 PM UTC, Paradex issued an official statement attributing the outage to database maintenance and migration issues. These issues caused anomalies like BTC prices plummeting to zero, triggering a wave of liquidations. The team said it would roll back the chain state to block 1604710 (UTC 04:27:54) — the last known valid state — to restore pre-maintenance conditions. Paradex’s official website finally resumed operations at 8:13 PM UTC yesterday. The crypto community reacted with widespread skepticism and criticism over the rollback, questioning the “reliability” of on-chain DEXs — especially the security and true decentralization of L2-based perpetual contract DEXs. Some members argued that perpetual contract DEXs may have been a “wrong product form” from the start, noting that centralized control often reemerges under the guise of “system fixes” in extreme scenarios. A post from Solana community member chase.skr gained significant traction: Solana’s more decentralized validator set has prevented unauthorized chain rollbacks, updates, or shutdowns following hacks or contentious forks. Consensus is critical, and centralized control of a blockchain is harmful, the member stated. The true meaning of the “D” (decentralization) in DEX is worth reevaluating.

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