Hyperliquid founder clarifies that the platform prioritizing protocol revenue is FUD; the ADL mechanism has generated hundreds of millions of dollars in net profit for users

ChainCatcher news, Hyperliquid founder Jeff stated in a post that the rumors about the platform "prioritizing protocol revenue" are pure FUD. He pointed out that the automatic deleveraging (ADL) events have actually brought users net gains of hundreds of millions of dollars; if a backstop liquidation mechanism were adopted, the platform's HLP could indeed gain more profit, but the risk would be much higher.

Jeff emphasized that the ADL mechanism is designed to transfer potential profits to users and reduce system risk, achieving a "win-win" situation. He added that Hyperliquid's ADL queue logic is similar to that of mainstream centralized exchanges, calculated based on leverage multiples and unrealized PnL. Although the team is currently researching more complex algorithms, they believe that "keeping the mechanism simple, robust, and easy to understand" is the better solution.