Hyperliquid founder Jeff has refuted claims that the platform prioritizes protocol revenue, labeling such rumors as FUD. He clarified that the automatic deleveraging (ADL) on October 10 generated hundreds of millions in net profits for users. While a backstop liquidation approach could yield more profit for Hyperliquid, it carries higher risks. Jeff emphasized that ADL transfers potential profits to users and reduces platform risk, creating a win-win scenario.
He further explained that Hyperliquid's ADL queue mechanism is similar to those of major centralized exchanges, relying on leverage ratios and unrealized P&L calculations. Although the team is exploring more complex logic, they believe a simple formula is more robust and easier to understand.
Hyperliquid Founder Denies Profit-First Allegations, Defends ADL Strategy
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