Hyperliquid Co-founder: The ADL mechanism has brought hundreds of millions of dollars in revenue to users, and platform revenue is not the priority.


Jeff Yan, the founder of Hyperliquid, responded to external criticism by stating that the platform does not prioritize protocol revenue, but values the interests of traders. He also defended the automatic deleveraging (ADL) mechanism adopted by the exchange during the market crash on October 10. Yan stated that the ADL operation closed profitable short positions at favorable prices, bringing "billions of dollars in profit" to users. At the same time, the platform's liquidity pool also transfers potential profits to users, rather than maximizing its own revenue. This statement comes at a time when the public is closely watching how decentralized perpetual contract exchanges handle liquidation issues during market volatility. Yan emphasized that if more positions were liquidated at the bottom line, HLP could have made billions of dollars in additional profit, but that would result in irresponsible risk exposure. He also stated that the ADL mechanism is a "win-win" solution, reducing platform risk exposure while also considering user interests.