Wintermute Founder Evgeny Gaevoy Reveals DeFi Liquidity Imbalance During 10/11 Crash on Binance

In a recent appearance on The Block’s podcast, Evgeny Gaevoy, founder of Wintermute, described the ‘10/11‘ crash as triggering a severe DeFi inventory squeeze that tested market resilience.

He said his position was on Binance, but the transfer out was blocked, forcing him to liquidate all DeFi exposure and repurchase on Binance, only to confront further transfer frictions and a liquidity imbalance.

He noted that although arbitrage via cross-market pricing or borrowing was possible, the risks were elevated and execution was highly complex.

During the turmoil, several competitors’ risk controls triggered circuit breakers, pausing DeFi trades. Gaevoy praised his team’s execution, stressing that despite upside, inventory constraints ultimately limited returns.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.