ajixbtc

Crypto Degen & Analyst | Quantitative Trader | Onchain #DeFi | #Bitcoin $BTC Hodler

[ajixbtc @ajixbtc]

@CryptoWaveID As an investor and quantitative trader

[ajixbtc @ajixbtc]

@AltcoinDaily It's not retest, it's starting bear market already. Those who have bought at 8k-15k in 2020-2022 are ready to take profit.

[ajixbtc @ajixbtc]

@Ashcryptoreal You might have forgotten that in previous cycle, many retail and whales from China were involved in pumping liquidity, but they're no longer present this time because they're in the midst of stimulus. Regardless, BTC will continue to rise, even if it won't be as strong as before.

[ajixbtc @ajixbtc]

transparency and fairness #hyperliquid $hype

[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.

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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.

[ajixbtc @ajixbtc]

While other ETFs sell, the world's largest asset management 'BlackRock' keeps buying. History doesn't lie, they have the future firmly in their grasp. #Bitcoin $BTC

[Ethena Ecosystem @Ethena_Eco]

Powered by Ethena 🩵

[ajixbtc @ajixbtc]

@usualmoney Onchain data clearly shows that USUAL protocol has lost significant community and investor trust. How can you still talk about long term sustainability? Theres no project development, just lure of APY that cant even cover the losses. The community needs proof, not sweet promises.

[Strata @strata_markets]

$300M USDe pre-deposited.
10,000+ depositors.

Season 0 is coming to a close as our first structured yield products built on @ethena USDe launch in Season 1 🔜

✦ Senior USDe (srUSDe)
✦ Junior USDe (jrUSDe)

Big things are coming to Strata & @Ethena_Eco. Stay tuned!

[ajixbtc @ajixbtc]

@usualmoney While others are rising and some are setting new ATH, you remain steadfast and consistent, setting new ATL records always. Your consistency is commendable. Congrats! You guys awesome 🎉

[YZi Labs @yzilabs]

https://t.co/AfzsqtAPwb

[ajixbtc @ajixbtc]

@usualmoney Wake up! Don't sleep to long. Because the APY you're offering doesn't cover the losses I've staked and locked in the mainnet since February.

[Strata @strata_markets]

$200M USDe pre-deposited.
8000+ depositors.
6 weeks.

Integrations: @pendle_fi @MorphoLabs @eulerfinance @GearboxProtocol @TermMaxFi
Curators: @hyperithm @MEVCapital @k3_capital
@ethena Ecosystem Partners: @etherealdex @convergeonchain @infinifi

Strata everywhere.

[ajixbtc @ajixbtc]

@strata_money @pendle_fi @MorphoLabs @eulerfinance @GearboxProtocol @TermMaxFi @hyperithm @MEVCapital @k3_capital @ethena @etherealdex @convergeonchain @infinifi Congrats 🤝 Btw when will UI Strata feature Morpho in Portfolio-Points?

[ajixbtc @ajixbtc]

@usualmoney @bunni_xyz Did you notice that -96.2% drop?? Just a correction or scam? Even the proceeds from ongoing staking and locks on Mainnet can't cover the losses. What are you building? Come on, don't sleep too long.

[ajixbtc @ajixbtc]

The most important rule in crypto: "Dont be the one exiting liquidity. Always be the first to get in"

Strata Season 0 from #Ethena has started, heres what you'll get:
- #Strata 60x
- Sats Ethena $ENA 50x
- #Ethereal 1x

Execute here and use 10% booster🚀
https://t.co/bLasKHPlb1

[Strata @strata_markets]

$100M in pre-deposits.
25 days.

Strata is accelerating the convergence of DeFi and TradFi alongside @ethena and @convergeonchain.

Season 0 is just the beginning.

[ajixbtc @ajixbtc]

And 1 BTC will equal 10 kg gold in the next 10 years. Sounds crazy? Well, to those who don't know about #Bitcoin $BTC. Those who do, they won't be surprised. The crypto era is unstoppable! 🔥🔥🔥

[CoinMarketCap @CoinMarketCap]

Did you know?

At today’s prices, 1 BTC is worth about the same as 1 kg of Gold.

Check live gold, stocks, and tokenized asset prices on CMC’s Real World Assets dashboard: https://t.co/gpFcQuJ2oN

[ajixbtc @ajixbtc]

Undeniable facts about #Bitcoin $BTC
15 years ago vs now:
1 BTC = live safely
10 BTC = rich
>100 BTC = crazy rich

Now vs >10 years from now:
1 BTC = rich
10 BTC = crazy rich
>100 BTC = global elite

[ajixbtc @ajixbtc]

Lemme sketch out #Bitcoin $BTC price chart for ya, so you dont gotta do technical analysis from A to Z or get scammed by paid classes.

[ajixbtc @ajixbtc]

#Bitcoin $BTC is unique. The deeper he go, the higher it goes. But higher doesnt necessarily mean deeper. Skeptics will be compelled to follow. Those who already follow will become addicts. This is an undeniable fact for 16 years.

[ajixbtc @ajixbtc]

Moutai coffee is the perfect combo coffee and liquor