M

[jeff.hl @chameleon_jeff]

Excited to see everyone come together for this historic moment. AQAv2 brings the protocol-aligned stablecoin model that @Nativemarkets trail-blazed to USDC with @Coinbase and @Circle's commitment to Hyperliquid. The community no longer has to choose between liquidity and alignment.

Our industry will face adversity as we continue to grow. It gives me hope seeing titans of the industry come together to build for users and bring all of finance onchain.

[jeff.hl @chameleon_jeff]

Integrity has always been one of Hyperliquid's core values.

The house of all finance must be credibly neutral. This means no private investors, no market maker deals, and no protocol fees to any company.

The initial state of any blockchain is a crucial part of its story that can never be erased. The original ethos of Bitcoin was a permissionless network accessible to all. Hyperliquid's genesis distribution followed this spirit, going entirely to early users with core contributors excluded. The full distribution is verifiable onchain without obfuscation.

This principle of fairness frustrates a few users and builders who are used to special treatment. It means that Labs has zero tolerance for team members with integrity yellow flags. It means we do things the hard way as a community. But the world deserves a financial system owned by the people, where fairness to all users is in the DNA. Nothing else is worth building.

[Lighter @Lighter_xyz]

We are announcing the Lighter Infrastructure Token (LIT)! Lighter is building infrastructure for the future of finance and the native token is key to aligning incentives. In this thread, we will describe the structure of the token, broader vision, and roadmap of use cases.

[M @MadnessIX]

@cascade_xyz .

[jeff.hl @chameleon_jeff]

Debunking the FUD that Hyperliquid prioritizes protocol revenue over traders

On 10/10, Hyperliquid ADLs net made users hundreds of millions of dollars by closing profitable short positions at favorable prices. If more positions had been backstop liquidated, HLP could have made hundreds of millions of dollars more in pnl, while being exposed to an irresponsible amount of risk. ADL passed on HLP's potential pnl to users while decreasing HLP's exposure, a win-win.

As a reminder the ADL queue on Hyperliqid has always followed a similar formula to what most CEXs use, incorporating both leverage used and unrealized pnl on the open position.

Finally, thanks to everyone for the feedback on ADL. Suggestions generally increase complexity, such as partially offsetting long and short positions in historically correlated assets. I don't know of other major venues that use more complex logic for the ADL queue. Simple formulas are more robust and understandable by users. Nonetheless, there is research being done on whether there can be substantial improvements that merit more complexity.

[trade.xyz @tradexyz]

Equity perps are now live.

Trade [XYZ100] with up to 20x leverage 24/7, 365.

The XYZ US 100 Index tracks the value of the top 100 non-financial companies.

The first 100 users on the waitlist will get alpha access to https://t.co/0pSGkVZda0 today.

[jeff.hl @chameleon_jeff]

Hyperliquid’s fully onchain liquidations cannot be compared with underreported CEX liquidations

Hyperliquid is a blockchain where every order, trade, and liquidation happens onchain. Anyone can permissionlessly verify the chain’s execution, including all liquidations and their fair execution for all users. Furthermore, anyone can verify the solvency of the entire system in real time. Transparency and neutrality are key reasons that fully onchain defi is the ideal infrastructure for global finance.

Some CEXs publicly document that they dramatically underreport user liquidations. For example on Binance, even if there are thousands of liquidation orders in the same second, only one is reported. Because liquidations happen in bursts, this could easily be 100x under-reporting under some conditions. Source below.

Hopefully the industry will see transparency and neutrality as important features of the new financial system, and others will follow.

[jeff.hl @chameleon_jeff]

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.

[M @MadnessIX]

@AI1Ali Turn it off & on again

[M @MadnessIX]

@Fony_Zony @WezzStar Gramps forgot to take his meds again

[M @MadnessIX]

@AI1Ali Solid writeup 🔥

[M @MadnessIX]

@liminalmoney codes

FGE94
GLN56
NOL20

[Coinbase Traders @coinbasetraders]

Coinbase Advanced is adding support for $HYPE @HyperliquidX perpetual future.

The opening of HYPE-PERP markets will begin on or after 9:30 am UTC 5 JUNE 2025.

[M @MadnessIX]

@AI1Ali Loading up ✅

[M @MadnessIX]

@AI1Ali how greedy

[M @MadnessIX]

@AI1Ali Hehe suii

[M @MadnessIX]

@0xdetweiler Ethereum coded

[Hyper Foundation @HyperFND]

The HyperEVM is live. This is a major step toward the vision of housing all finance by bringing general-purpose programmability to Hyperliquid’s performant financial system. The initial mainnet release of the HyperEVM includes:

1. HyperEVM blocks built as part of L1 execution, inheriting all security from HyperBFT consensus.
2. Spot transfers between native spot HYPE and HyperEVM HYPE. As a reminder, HYPE is the native gas token on the HyperEVM.
3. A canonical WHYPE system contract deployed at 0x555...5 for defi applications. The source code can be found at https://t.co/pXmVRNpqov

Effective immediately, the bug bounty program will pay mainnet bounty amounts for reports within the scope of the points above. See https://t.co/KamzgZAYWh for details.

For API and wallet users: the mainnet HyperEVM has chain ID 999. A JSON-RPC server for the mainnet HyperEVM is hosted at https://t.co/BB0W8L4cXp. Node operators and other builders are encouraged to host their own RPC servers.

Tooling and analytics around mainnet HyperEVM may not be polished on day one. However, there are many talented builders working to solve these developer pain points. To help with these efforts, raw HyperEVM block data is streamed realtime to S3 so that running a node is not required to index the HyperEVM. More technical details can be found here: https://t.co/h6GeFo8HIl

General ERC20 native transfers and precompiles will be enabled on a future network upgrade. Any ongoing feedback for these features on testnet is greatly appreciated. While these features are implemented on testnet, the mainnet releases are staggered for minimal disruption to existing users on the L1. The HyperEVM is composable with the L1 state while not affecting the low latency trading experience of existing users.

Thank you to all the builders and users who have shared feedback on testnet so far. It will be exciting to see new applications leveraging and building upon the existing onchain financial system of Hyperliquid.

[M @MadnessIX]

@CryptoParadyme This is the marketmaker/deployer meteora heads were referring projects to lool https://t.co/C7Z78Cmt1z

[benchow.sol @hellochow]

There have been questions regarding Meteora and my involvement in $LIBRA, so I want to explain our role and share why we work with 3rd parties.

Meteora and I personally, have never received or managed any tokens on the side, do not receive knowledge or get involved with any offchain dealings, and we keep to the highest levels of confidentiality for any token launch happening on our platform.

To maintain the high levels of confidentiality, very few people in Meteora have access to any launch information. Often, the launch time is only known by me and the token/pool address is only given to me and an on-call engineer or two a few minutes before an actual launch, if at all.

Meteora’s DLMM and Dynamic AMM is a complex permissionless system with an incredible number of configuration options for teams looking to launch with it. There are various ways to lock liquidity, assign custody, design liquidity curves, and different ways to combat snipers including using our Alpha Vault. I often personally provide tech support for launches to help teams navigate the product. Mistakes can seriously impact a launch and it’s important to Meteora to help teams by configuring the product correctly.

We recognize that the complexity of the DLMM and the need to hand hold teams through its use is a problem. One mistake was not prioritizing a launch product so that teams would not need to rely on hand-holding to be successful.

When non-crypto natives (e.g. celebrities, politicians, etc.) want to launch a token, they typically need to hire a “deployer” and/or market-maker, which is a service we do not provide. These deployer teams are typically experts in using Meteora’s SDK or CLI and can design more sophisticated launches, as our tech allows for tons of customization. In the past, if a project did not have those resources, they would often ask me for deployer and/or market-making referrals.

Hayden Davis of Kelsier Ventures is one of the deployer/market makers that I have referred projects to over the past few months. There was nothing exclusive or unique about our relationship with Kelsier.

When we launched our new memecoin AMM platform in December 2024, I asked Hayden and Kelsier Ventures if they would be interested in launching a token on the M3M3 platform in order to provide an initial case study on how it worked. And, while they deployed and launched M3M3 on their own, post-launch we decided on a new set of tokenomics and facilitated a grant for the Meteora community as well as to establish a long-term foundation for M3M3.

After this successful, if somewhat challenging launch, they appeared to be trustworthy and I referred them to a handful of other projects that had inquired with us about deployer firms, which included the team behind $MELANIA. As with other projects, our role was limited to IT support and the tech we built for token launches. Like with any other unaffiliated token that lives on Meteora, we did not purchase, receive or manage any tokens on the side related to $MELANIA.

For $LIBRA, although we were made aware of the possibility of it several weeks ago by Hayden, we had no involvement in the project at all beyond providing IT support, including commenting on the liquidity curve and helping verify the token’s authenticity after the token was publicly launched.

Neither I nor the Meteora team compromised the $LIBRA launch by leaking information, nor did we purchase, receive, or manage any tokens.

I hope this clarifies what we do and how we have interacted with teams looking to launch major tokens on Meteora.

I’ll be here to answer any questions you have.