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@chameleon_jeff @vnovakovski spends all his time on Twitter yapping bullshit instead of building a solid, working and well thought out product. There is no second best, Hyperliquid.

TLDR: During recent volatility, Hyperliquid had 100% uptime with zero bad debt. This was Hyperliquid’s first cross-margin ADL in more than 2 years of operation. ADL does not change the outcome for any liquidated users. While some specific ADL providing trades were unfavorable, the aggregate effect of ADL was that traders realized significant pnl by closing positions at favorable prices that were only briefly available. -- It’s sad to see some people attack Hyperliquid to deflect from their own platforms’ issues. Solvency and uptime are the two most important properties of a financial system. These are table stakes for any trading system, and gaslighting to convince users otherwise is unethical and irresponsible. Below is more analysis on how Hyperliquid’s margining system handled the extreme volatility. Background on liquidations For a perps system to be solvent, every position must be backed by a minimum amount of collateral. This is called the “maintenance margin.” When positions do not meet the maintenance margin requirement, they are taken over by the system to be liquidated. Earlier today, many altcoins dropped by more than 50% in a short period of time. When this happens, long positions at 2x or higher leverage must be liquidated, or else the system accrues bad debt. There were billions of dollars worth of positions liquidated on Hyperliquid in a matter of minutes. In a permissionless system, each user chooses their own position sizing and collateralization. Any system that does not liquidate the necessary users is irresponsibly gambling with other users’ funds. On Hyperliquid, every order, trade, and liquidation is transparently verifiable onchain. Many other venues significantly under-report liquidation data. This cannot be compared apples-to-apples against the fully onchain picture of Hyperliquid. Background on HLP HLP is a protocol vault with permissionless deposits that 1) provides order book liquidity and 2) performs backstop liquidations. The first role is negligible, with HLP trading less than 1% market share. The focus of this post is liquidations. Liquidations are first attempted against the order book, and any user can provide liquidity to these market liquidations. Backstop liquidations occur when the order book does not have enough liquidity to absorb an undercollateralized position. In this case, HLP takes over the position along with its collateral. For improved risk management, HLP is split into several child vaults, and each liquidation is only sent to one child vault. Background on ADL Auto-deleveraging (ADL) is the liquidation mechanism of last resort, when market and backstop liquidations do not work. See Doug’s thread (link in reply) for a thorough explanation on the details of ADL. Every ADL event has two sides: the “triggered” side is undercollateralized, while the “providing” side is decided as a function of profitability and leverage used. Similar to backstop liquidations, even though providers to ADL are profitable on average, there are no guarantees for any specific event. Some ADL providing trades were unfavorable, such as when only some components of long/short portfolio were closed. The system is designed to minimize ADLs because they are unpredictable even if ADL providing trades are profitable on average. Because HLP is a non-toxic backstop liquidator, ADL is a rare settlement of last resort. As far as I know, this was the first cross-margin ADL event on Hyperliquid mainnet (ADL is more common for isolated-only assets such as hyperps, which are not backstop liquidated by HLP). Summary of events Over the course of 20 minutes, HLP backstop liquidated billions of dollars worth of positions. HLP's philosophy has always been to provide liquidity of last resort. Contrary to misconceptions, HLP is a non-toxic liquidator that does not pick profitable liquidations. Instead HLP is a public good for maintaining system solvency. In particular, Hyperliquid has no liquidation fees. HLP’s design, including its multi-component child vault system, is the product of countless simulations, and allows HLP to maximally serve the benefit of the protocol while managing its own risk. In fact, the liquidator child vaults of HLP themselves became undercollateralized in the course of backstop liquidating as many user positions as possible. This is by design, where child vaults are isolated from the other components of the overall strategy. HLP is treated no differently from other users when participating in ADL. In aggregate, HLP's child vaults were the largest addresses on the triggered side of ADL by more than an order of magnitude. The addresses on the providing side of ADL against HLP’s child vaults realized hundreds of millions of dollars in additional profit relative to the prices shortly before and after the dislocation. On other venues, the liquidation engine is not transparent and therefore may not be subject to the same strict margin requirements as for normal users. On these venues, the exchange could have backstop liquidated more positions, bearing increased solvency risk to extract hundreds of millions in business revenue. This is not an acceptable tradeoff for Hyperliquid. Finally, I know that this is a difficult time for many traders, and I hope the community can continue to support each other and grow together. As a contributor to Hyperliquid, I’ll continue to work my hardest to build the best possible platform that can house all of finance. Times like this highlight the importance of transparency and fairness in the financial system.

@69kimchi420 @vnovakovski @_GrandExchange_ @aaalexhl Dumping lighter points OTC (if it’s not the same team buying trying to catch sellers) The guy is a foolish retard @chameleon_jeff got nothing to worry about

@vnovakovski @_GrandExchange_ @aaalexhl As an early user, I am rooting for Lighter There’s wisdom in discerning what is worth your time and what is not

At least Lighter is respectfully wash trading their volume

@_GrandExchange_ @vnovakovski @derteil00 You know Lighter raised at 100M fdv ? You should be grateful for a 10m cumulative airdrop if u manage to get one from predatory insiders and VCs :] El jefe is unmatched Study GMX season, every other crap rotates to the main winner aka $HYPE There is truly no second best

@vnovakovski @derteil00 Sure give us a 200m nft airdrop, give us a meme coin with liquidity, give us spot, give us a 2b airdrop, and you’ll have the same cult following for life (you are already getting close, keep up the good work)

There is no second best

@davidyjeong @Lighter_xyz @vnovakovski @hansolar21 @babastianj I wouldn't be surprised if it was fuggin VC grift to exploit retail Talk up Robinhood model like it’s some great innovation when RH rapes tardfi bros Someone sit these laymen Can wait to nuke chart for more $HYPE they stand no chance against the One and Only @chameleon_jeff

@yos28mar @Lighter_xyz @vnovakovski @hansolar21 @babastianj seems like all the lighter-heads are posting about volume and OI, no one's talking about the UX like they were when hyperliquid TGE'd. those things will drop off significantly after airdrop unless they can really differentiate on product.

when everyone is debating what price they would sell their @Lighter_xyz for, you have to expect some selling pressure on day 1.. can the lighter team pull of a hyperliquid and stay locked in and objectively aligned? tbd

@vnovakovski @Protext_io @AlucardTrades @choffstein @Lighter_xyz @hosseeb Amusing how a deceitful poker scammer is considered highly respected on here But that will be a story for another day Hosseeb is not a good person and will INFINITELY DUMP tokens, equity or whatever you two arranged in backdoor deals (In before I get blocked by daddy haseeb)

@Protext_io @AlucardTrades @choffstein @Lighter_xyz @hosseeb I think @hosseeb would be at the poker table, going all in!

Coming up on Flirting with Models... @vnovakovski with @Lighter_xyz m.youtube.com/watch?v=ZMpCmF…

@hansolar21 @vnovakovski @Lighter_xyz @extendedapp Shall we take a look into how all aspects of Lighter are mercenary… ? @paradex turned on their "0 FEE campaign" and lighter ‘OG’ role holder bridged over instantly Hopefully all insider point holders can cash out in December and pick up more $HYPE Observe pic for KEKs

@hansolar21 @vnovakovski @petitfilo @Lighter_xyz Sooo the lighter “champion” is now running spaces with a DIRECT competitor aka @extendedapp And you think they won’t dump you for the NEXT FARM the second you drop the token? Alright buddy

re Lighter vs Hyperliquid TVL, volumes and OI are definitely getting hot on @Lighter_xyz. But I would be careful in reading those. Trading is with NO fees - as they will be introduced in Q4. So I would not jump and define it as the new hl... The TVL is driven by the LLP, which has an 80% APY, and surprisinglt they were somehow able to maintain as more deposits came in. On LPs for perps platforms - you can clearly see the direction @HyperliquidX is going in. Fading out HLP as a core offering, which was confirmed by their recent redirection of the part of the daily fees away from HLP. I remember a podcast from Jeff a few months back where he was saying that HLP was a USP feature at the start, of hl and it was key to boostrap liqudity - but as the exchange grew, the LP took on a lot fewer trades and it wasn't as necessary. Their focus then shifted in providing the best infra for HFTs.The Lighter LP, on the other side, seems still to be a core feature. Something I find a bit shady is that the team DOES charge fees for the APIs to HFTs but they wouldn't disclose the figures to comthe munity (while being 2-3 months away from TGE). This makes me think that fees are either so low or not intended to eventually go back to token holders. If they turn out to be low, this means that there is less volume from external MM, which somewhat confirms that the LLP takes on a lot more trades in for market making and hence the high APY. The biggest challenge Lighter has going into the TGE is finding a way for the capital not to leave the ecosystem. HL literally built a whole chain for people to play around with their HYPE tokens. And this attracted both huge airdrop receivers to reinvest in the ecosystem and external builders. Lighter has incentivized every single metric to date, so they will have to build a reason for people to not sell their tokens as soon as they receive them and to go back to hl: ESPECIALLY as they will introduce trading fees. So far, Lighter hasn't really been a thought leader - but rather copied a lot of what hyperliquid did. So token design, stickiness of capital after fee introduction, and token-value acctual remains a big question mark for me. There is a 99.99% chance their token design will not be as clean as something like hype. But the hype standard is quite unfair. Definitely a lot of hurdles, and once the "ponzi" flywheels/ incentives get slowed down, things can get reflexive to the downside. If they struggle to retain users, or to give users utility for the token, or even fail to paint a chart like the hype one, then users leave. They will lose liquidity, and the downspiral to the downside will begin. If you go back and look at the hl team, you will see a teak that took the best decisions every step of the way until this day. Combined with the fact that they didn't have any backing and are purely non-extractive, everything builds up to the currentvaluation. Timing was also different as they were building and launched in a bear market - with the TGE at cheap valuation with the bull market yet to start. Lighter started inspired by hl and has been backed by VCs from the start. They now have a lot to figure out, and the timing is not on their side. I am still personally trying to wrap my head around the zk-side of the tech a. If it is actually scaling the way they discuss seems relatively bullish from a scalability and security side.

@cole0x Well done, when are you shipping the next grift ?

@non_chi_so @R4F1K1_ @hansolar21 @vnovakovski @petitfilo @Lighter_xyz - what happens when there’s a fee switch? - what happens when 50%+ supply is infact not reserved for airdrop? - when LLP stops giving 80%+ returns? - see #1 - lol, roflLMAO even?? - what happens when TGE doesn’t occur in Q4 ? Your entire thesis is driven by vanity 🤨

@yos28mar @R4F1K1_ @hansolar21 @vnovakovski @petitfilo @Lighter_xyz You're really retarded trying to point shame and delusional thinking you got more points. I can vividly see you're hellbent on spreading FUD and have little information on what you're talking about.

@non_chi_so @R4F1K1_ @hansolar21 @vnovakovski @petitfilo @Lighter_xyz I own > 20x of your cumulative points You should sit down when share holders are engaging in a discourse 🦐

Much FUD was said about Hyper liquid during its early days but look at where they're right now. The irritating part is that most of guys spreading FUD have no real information about the intentions of the team, you don't attend the AMAs session or being active in discord to know what's happening and things being talked about, you just hop into X and spread FUD just for the fun of it. Also, You're welcome to short on TGE.

@Samtolad @hansolar21 @vnovakovski @petitfilo @Lighter_xyz Fuck outta here you LARP Your pinned post is all about q4 tge, 50% of supply being dropped at same TGE and $/pt you plan to dump for You are ONE out of the many mercenaries we are discussing here, using platform solely for airdrop promises and swift tge I can see through you

@yos28mar @hansolar21 @vnovakovski @petitfilo @Lighter_xyz Lmao. Clearly you can read correctly or just working so hard to find smtn to fud about? 😅 So when someone says: “I previously worked at XYZ” or “I’m an angel investor at ABC” …it means they are full-time staff and CEO of the said companies? 🫠

@hansolar21 @vnovakovski @petitfilo @Lighter_xyz Highly doubt they’re going to keep shipping post TGE because tell me why the ceo has not 1,2,3,4,5,6,7,8 but NINE different projects in bio This is def not the flex they think it is Lighter appears to be just another side hustle and their attention/focus are clearly fragmented

A lot of people i've spoken to have come for the points and stayed for the zero fees, making it their main trading venue. Number go up technology worked for hyperliquid because they kept on executing at the highest standard even after the TGE; you should expect nothing less from this team.

@0xcryptus x.com/yos28mar/statu…

midwit takes like these reek of bag bias. this person hopes that “lighter isn’t the next hyperliquid,” and it shows in their writing. they all seem to share a few common elements: 1) basic misunderstanding of lighter’s revenue model (e.g. 0 fees for retail) 2) favor toward HL over lighter purely due to legacy forces (e.g. MM onboarding and LLP vs HLP) 3) drawing unsupported conclusions from misinterpreted data or statements (e.g. airdrop %) 4) acknowledgement of retardation to hedge (e.g. wow, what does zk mean???) 5) desperate populist grasp for attention (muh VCs) you can stop writing these. you are convincing nobody.

. @berachain raised 150M$ Only to make $581 in chain fees 5 months after mainnet