Hyperliquid, a blockchain network specializing in trading, has increased profit margins for traders after losing millions of dollars in its liquidity pool (in huge ether) (eth) The Internet said.
On March 12, a trader deliberately liquidated about $200 million in Ether shares, causing the super-liquid liquidity pool HLP to lose $4 million, thus relaxing the transaction.
Starting March 15, Hyproliquid said in a March 13 x post that super liquidity will begin requiring traders to keep at least 20% of collateral at certain open positions to “reduce the systemic impact of large positions and assume the impact of the market on closures.”
The event highlights the growing pains of encountering hyperliquidity, which has become Web3’s most popular leveraged permanent trading platform.
Super liquid has adjusted traders’ margin requirements. source: Super fluid
Hyperliquid said the $4 million loss was not from exploitation, but the predictable outcome of its trading platform mechanism under extreme conditions.
“(Y)Esterday’s activity highlights an opportunity to strengthen the edge frame to address extreme conditions more firmly.” explain.
Hyperliquid said the changes only apply to certain situations, such as when a trader exits collateral from a public location. Traders can still hold new positions with up to 40 times leverage.
Permanent futures or “perps” are leveraged futures contracts with no expiration date. Traders deposit margin collateral – usually USDC (USDC) For superflow cloth – Ensure an open position.
By withdrawing most of his collateral and liquidating his position, the trader effectively cashed out of the deal without slipping or losses caused by selling large positions at once.
Instead, these losses are borne by the HLP liquidity pool of HLP.
Hypliquid’s HLP has over $350 million in TVL. source: defill
Related: Crypto market liquidation could reach $10B – CEO of Baybit
Leading PERPS exchange
As of March 13, the total value lock (TVL) of HLP was approximately US$340 million, from user deposits, according to Go to Defilama.
According to a January report by asset manager Vaneck, Hyplliquid’s flagship PERPS Exchange, launched in 2024, has captured 70% of market share, surpassing competitors such as GMX and DYDX.
Hyper-liquid tout trading experience is comparable to centralized exchanges, with fast resolution times and low fees, but with less diversified trading experience compared to other exchanges.
According to Defilama, Hyproliquid’s trading volume was about $180 million as of March 12.
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