One of the altcoins that was at the center of negative criticism during the recent crash has made a statement on the subject.
Hyperliquid (HYPE) founder Jeff has made statements arguing that allegations that the platform prioritizes protocol revenue over user earnings are baseless.
Jeff stated that users made hundreds of millions of dollars in profits during the ADL (Auto-Deleveraging) event held on October 10th. However, he noted that if a different scenario had been chosen, Hyperliquid Protocol (HLP) could have generated even greater profits by closing more positions using the “backstop liquidation” method. However, he added that this method also means higher risk for the platform.
“The ADL mechanism passed on HLP’s potential profits to users while also reducing the platform’s risk exposure — a win-win situation,” Jeff said.
Jeff also noted that Hyperliquid’s ADL queue operates with similar formulas used by major centralized exchanges, adding that the system takes into account metrics such as leverage ratio and unrealized profit/loss.
Jeff noted that most of the user feedback included suggestions for more complex systems, saying:
“Simple formulas are more robust and easier for users to understand. However, research continues into new approaches that could provide significant improvement.”
With this statement, Jeff clearly denied the rumors that have been circulating on social media recently that “Hyperliquid is prioritizing revenue.”
