Hyperliquid, a blockchain network specialized in commerce, has increased margin requirements for merchants after their liquidity group lost millions of dollars during a massive ether liquidation (ETH), the network said.
On March 12, a merchant intentionally liquidated a long ether position of approximately $ 200 million, which caused the hyperlichid liquidity group, HLP, to lose $ 4 million, unrolling trade.
As of March 15, hyperlichid will begin to demand merchants to maintain a collateral margin of at least 20% in certain open positions to “reduce the systemic impact of great positions with a hypothetical impact on the market when closing,” Hyperliquid said in a March 13 x position.
The incident highlights the growth pain that the hyperlichid face, which has become the most popular web 3 platform for leverage perpetual trade.
Hyperliquid has adjusted margin requirements for merchants. Fountain: Hyperlichid
Hyperliquid said that the loss of $ 4 million was not an exploit, but rather a predictable consequence of the mechanics of its negotiation platform in extreme conditions.
“[Y]The Esterday event highlighted the opportunity to strengthen the margin to address extreme conditions in a more robust way, ”said Hyperliquid.
These changes only apply in certain circumstances, such as when merchants withdraw the guarantee of open positions, said Hyperliquid. Merchants can still assume new positions with up to 40 times leverage.
The perpetual future, or “Perses”, are contracts of signed futures without expiration date. Merchants deposit the margin guarantee, typically USDC (USDC) for hyperlichids, to ensure open positions.
When withdrawing most of his guarantee and liquidating his own position, the merchant effectively left his trade without slipping, or losses for selling a large position at the same time.
Instead, these losses were supported by the Hyperliquid HLP liquidity group.
HLP of Hyperliquid has more than $ 350 million on TVL. Fountain: Defill
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Exchange of leaders
As of March 13, HLP has a total locked value (TVL) of approximately $ 340 million of user deposits, according to defill.
Run in 2024, the exchange of Hyperliquid’s insignia has captured 70% of the market share, surpassing rivals such as GMX and DyDX, according to a January report by Vaneck Assets Manager.
Hyperliquid promotes a commercial experience comparable to a centralized exchange, with rapid liquidation times and low rates, but is less decentralized than other exchanges.
As of March 12, Hyperliquid has registered approximately $ 180 million per day in volume of transactions, according to defill.
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