Hyperliquid Founder: The platform prioritizes protocol income that is not real, during the big dump, the ADL mechanism allows users to net hundreds of millions of dollars.

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On October 19, Jeff, the founder of Hyperliquid, responded to “Hyperliquid prioritizes protocol revenue over trader FUD”: On October 10, Hyperliquid's automatic de-leveraging (ADL) mechanism netted users hundreds of millions by closing profitable short positions at favorable prices. If more positions had been liquidated, HLP (Hyperliquid Protocol) could have additionally earned hundreds of millions through unrealized PNL, but this would have placed HLP at irresponsible high risk. ADL transferred HLP's potential PNL to users while dropping HLP's risk exposure, achieving a win-win situation. As a reminder, Hyperliquid's ADL queue has always used a formula similar to that of most centralized exchanges (CEX), taking into account the leverage used and unrealized PNL. Finally, thanks to everyone for the feedback on ADL; a simple mechanism is more robust and easier for users to understand. Nevertheless, Hyperliquid is exploring whether significant improvements can be introduced to justify the added complexity.

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