quain #Taker

iq50 To the moon and to the shell/Builder/NFT collector/BTC MAXI/Marketing agent @TakerProtocol

[quain #Taker @cryptoquain]

@LeotheHorseman 现在这么贵了吗 agency 都投不起了

[jeff.hl @chameleon_jeff]

Debunking Hyperliquid FUD (Part 1: HLP, liquidations, and platform guarantees)

It's sad to see coordinated misinformation campaigns targeting Hyperliquid, which have led to widespread misunderstanding of what we are all working so hard to build.

In response, this series of posts provides detailed, factual explanations of how Hyperliquid works. As a community, we must actively fight FUD by spreading the truth. The tone with which we do this also matters: the best way to grow as a protocol and ultimately house all finance is to remain humble and welcome more users into the ecosystem.

--

The first post focuses on HLP and liquidations on Hyperliquid.

High level summary
The FUD is that the Hyperliquid protocol is subject to large losses stemming from manipulation. On the contrary, Hyperliquid's margining design mathematically guarantees platform solvency. Note that HLP’s losses are isolated to the vault itself, and Hyperliquid does not depend on HLP’s operation to exist. This was true even before the JELLY incident. After the JELLY incident, there is an additional change to protect HLP from losses during backstop liquidations. The fundamental changes are to HLP, not the platform itself.

HLP background
HLP is a permissionless protocol vault pioneered by Hyperliquid. HLP does not collect fees from depositors, and historically has returned 60M USDC in pnl to its depositors. On CEXs, this profit typically goes to the internal market making desks instead of users.
HLP plays two roles: market making and backstop liquidations. In terms of market making, HLP runs a passive strategy that accounts for less than 2% of Hyperliquid's total volume. The vast majority of volume on Hyperliquid is between two non-HLP users.

Liquidations
On Hyperliquid, liquidations are first sent to the book as a market order. This allows any user to participate in providing liquidity to liquidations, which is profitable flow on average. On other exchanges, this flow is internalized by the exchange as a revenue source.
HLP only performs backstop liquidations, which involves taking over positions that are unable to be market liquidated. When account values go negative, the last resort for platform solvency is auto-deleveraging (ADL). ADL closes underwater positions against the most profitable and highly leveraged positions on the other side, ensuring the protocol's solvency. ADL is extremely rare but importantly targets the attacker's position on both sides during manipulation attempts as described below.

JELLY incident
An attacker recently attempted to exploit HLP by opening a large long and short against themself. Open interest caps allowed a position worth 4M USDC at the time of trade, but the logical issue was that HLP collateralized the liquidation with its full balance. It is false that the platform itself had solvency risks, but HLP was indeed overexposed to the manipulation.

Changes made
Now the liquidator component vault of HLP has capped collateral, limiting its potential loss by backstop liquidations. A historical analysis was conducted based on this new system. Apart from the JELLY incident, this change would not have caused additional ADLs in the past, even during extreme volatility. However, it would have minimized HLP’s losses during the JELLY incident to low six figures, which is far less than the attacker spent on market manipulation. In particular, ADL would have closed the attacker’s momentarily profitable long position, leaving other JELLY positions untouched.

Validators now actively discuss delistings in an open governance forum on Discord. Several interesting dashboards have been created by users and validators: https://t.co/szhzxLnfr5, https://t.co/nvOxx9UfEV.
Market cap of the underlying spot assets will likely be an important input into delisting considerations. While delistings are important to ensure that users on the platform do not suffer from potential price manipulation, they are not required for platform solvency.

New state of margining system and HLP
Hyperliquid still functions as before, handling under-collateralized positions in the order of 1) market liquidations 2) backstop liquidations 3) ADL. Backstop liquidations on HLP now have additional protections to cap the total losses, making mark price manipulation attacks more expensive than the limited available gain from HLP. HLP's role continues to shrink as Hyperliquid grows, and at this point is nonessential to the protocol's operation. HLP still exists as a source of protocol yield through backstop liquidations and providing consistent background liquidity.

[quain #Taker @cryptoquain]

@forgivenever 会不会不是熊市 只是回归理性

[CZ 🔶 BNB @cz_binance]

Kyrgyzstan🇰🇬
Crypto adoption, one country at a time.
Also brought a Head of State to X.

[CZ 🔶 BNB @cz_binance]

I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency, expanding blockchain to more than trading. I find this work extremely meaningful.

[quain #Taker @cryptoquain]

@wenxue600 学习到了

[quain #Taker @cryptoquain]

@zeroibtc 活着

[quain #Taker @cryptoquain]

@ai_9684xtpa 牛逼

[quain #Taker @cryptoquain]

@Christianeth 正能量

[quain #Taker @cryptoquain]

@BTCTN @Forbes @cz_binance @gian_devasini @brian_armstrong @saylor Not counting the shadow bitcoin miners and early holders

[quain #Taker @cryptoquain]

@heyibinance @silverfang88 哎

[0xBai_ @0xBai_]

dydx也跟进用净收入回购token，不过这收入波动太大了吧，高的时候1千万刀每月，低的时候1百万刀每月

defi进入新的阶段，现金奶牛们纷纷赋能币东，uni你还在等什么？🫵

[victorji 🔶 @victorone111]

深刻印证了这个周期不在乎去中心化，不过相比较天天瞎逼谈去中心化做研究耽误赚钱，这个方向是对的

[quain #Taker @cryptoquain]

@CrypJeremyy @TakerProtocol @PandaWalkin

[Taker @TakerProtocol]

Taker Weekly Talk on AI, Bitcoin Ecosystem & Project Update

🗓 Date: 12 PM, 25 March (UTC)
🎙 Theme: Innovations and Growth in AI & Bitcoin Ecosystem
📍Location: https://t.co/uuc3XV1L5c
🗣 Language: English
Hosts & Guests:
Taker: Co-Founder, Mike Jin
@Pell_Network: Co-Founder, Makoto
@popapp_official: CMO, Anjali
@DeAgentAI: Core Community Contributor, Juli

🔗 Join us and be part of the conversation!

[Taker @TakerProtocol]

https://t.co/PbFzOQYaHe

[Nina Rong @nina_rong]

First hand witnessing AI era walking towards me 😃 Huge shout out to @openmind_agi @paigeinsf for the grand debut!

人工智能正向你走来

[SafePal Intern @SafePal_intern]

U 卡赛道看似繁荣，底层实则是银行风控和 PayFi 项目的终极拉扯——市面上，无论是交易所推出的 U 卡产品，还是明星口碑项目的加密支付卡，绝大部分都属于预付卡，所以很难做成长期生意。

原因也简单，作为 U 卡，除了高度仰赖渠道银行的加密业务合规意愿，还存在天然架构缺陷，说白了就是资金池托管权某种程度上在服务商手里，这对运营能力和道德水准都是极大的考验，合作银行和服务商任何一方出现问题，用户可就成了无辜的炮灰…

所以我也腆着脸皮再度安利下咱家的「非典型加密支付卡」方案——SafePal & Fiat24 银行通道服务（个人同名瑞士银行账户+万事达卡），欢迎 @_FORAB 老师和各位同学了解~

[quain #Taker @cryptoquain]

@zhouliangLen 心疼你

[quain #Taker @cryptoquain]

@openmind_agi huge!