0xFreeze ❄️

Numerous exploits have exposed the vulnerability of on-chain perpetual DEXes to market manipulation 🦹🏻 At @HMXorg, the security of users' funds is our utmost priority. To safeguard $HLP depositors against such events, we have implemented multiple mechanisms: 1️⃣ Adaptive Pricing: Our Adaptive Pricing mechanism adjusts the oracle price by applying a premium or discount based on the resulting skew between the long and short open interest of the asset after a transaction is executed. This means that attempting to build a large position in one direction at HMX will incur a discount/premium, significantly increasing the cost of any potential exploit and making it unprofitable for the malicious actor. 2️⃣ Auto Deleverage (ADL): Each trading position has an in-profit price target, at which point the position is automatically closed for users. This serves to limit downside risks for LPs (liquidity providers). The ADL price is determined by the initial margin requirement and is specifically set to strike a balance between risk for LPs and attractiveness for traders. 3️⃣ Open Interest Limit: Each market has its own open interest limit, separately defined for the short and long sides. This limit determines the maximum ongoing open interest that each asset can have on either side. When this limit is reached, new open interest positions are no longer permitted. Next week, @HMXorg will be introducing a new feature to further enhance our protection against price manipulation exploits. With this upcoming feature, HMX will be able to list a wider range of small to mid-cap crypto assets without compromising fund security 🛡 Stay tuned, Dragons! 🐉

Numerous exploits have exposed the vulnerability of on-chain perpetual DEXes to market manipulation 🦹🏻 At @HMXorg, the security of users' funds is our utmost priority. To safeguard $HLP depositors against such events, we have implemented multiple mechanisms: 1️⃣ Adaptive Pricing: Our Adaptive Pricing mechanism adjusts the oracle price by applying a premium or discount based on the resulting skew between the long and short open interest of the asset after a transaction is executed. This means that attempting to build a large position in one direction at HMX will incur a discount/premium, significantly increasing the cost of any potential exploit and making it unprofitable for the malicious actor. 2️⃣ Auto Deleverage (ADL): Each trading position has an in-profit price target, at which point the position is automatically closed for users. This serves to limit downside risks for LPs (liquidity providers). The ADL price is determined by the initial margin requirement and is specifically set to strike a balance between risk for LPs and attractiveness for traders. 3️⃣ Open Interest Limit: Each market has its own open interest limit, separately defined for the short and long sides. This limit determines the maximum ongoing open interest that each asset can have on either side. When this limit is reached, new open interest positions are no longer permitted. Next week, @HMXorg will be introducing a new feature to further enhance our protection against price manipulation exploits. With this upcoming feature, HMX will be able to list a wider range of small to mid-cap crypto assets without compromising fund security 🛡 Stay tuned, Dragons! 🐉