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The founder of Hyperliquid clarified that the platform's priority in pursuing protocol revenue is FUD, and the ADL mechanism has netted users hundreds of millions of dollars

Oct 19, 2025 08:54:48

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ChainCatcher news, Hyperliquid founder Jeff posted that the rumors about the platform "prioritizing protocol revenue" are purely FUD. He pointed out that automatic deleveraging (ADL) events have actually brought users net gains of hundreds of millions of dollars; while a backstop liquidation mechanism could allow the platform HLP to earn more profits, it also carries higher risks.

Jeff emphasized that the ADL mechanism is designed to transfer potential gains to users, reduce systemic risk, and achieve a "win-win" situation. He added that Hyperliquid's ADL queue logic is similar to that of mainstream centralized exchanges, based on leverage multiples and unrealized profits and losses. Although they are currently researching more complex algorithms, the team believes that "keeping the mechanism simple, robust, and easy to understand" is the better solution.

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