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Hyperliquid founder clarifies: Platforms prioritizing protocol revenue is FUD, and the ADL mechanism nets users hundreds of millions of dollars
2025-10-19 00:54

According to Odaily Planet Daily, Hyperliquid founder Jeff has issued a statement dismissing rumors that the platform prioritizes protocol revenue as pure FUD. He noted that the auto-deleveraging (ADL) event on October 10th actually generated hundreds of millions of dollars in net profits for users. While adopting a guaranteed liquidation mechanism would have yielded greater profits for HLPs, it would have also incurred greater risks. Jeff emphasized that the ADL mechanism is designed to transfer potential profits to users and reduce systemic risk, achieving a "win-win" situation.

He added that Hyperliquid's ADL queue logic is similar to that of mainstream centralized exchanges, and is calculated based on leverage multiples and unrealized profits and losses. Although more complex algorithms are currently being studied, the team believes that "keeping the mechanism simple, robust and easy to understand" is the best solution.