As last Friday saw one of the largest liquidations in the crypto industry, people have panicked enough to put the blame on each other. And this time, Hyperliquid founder Jeffrey Yan has come forward to speak up about his platform and put the blame on centralised exchanges.
After last Friday’s crypto market fall, Jeff Yan has stepped forward to defend his decentralised exchange (DEX) against claims of liquidations. He said that Binance and other CEXs, which have been underreporting liquidations by around 100 times, cannot be compared to the DEXs’ entirely on-chain liquidations.
What does he have to say?
Jeffrey Yan underlined that centralised exchanges cannot match the transparency provided by Hyperliquid’s entirely on-chain liquidation approach.
Binance, Coinbase, and other leading exchanges have been underreporting their liquidation figures by a ratio of about 100 times, he said.
Every order, transaction, and liquidation is reported by the Hyperliquid DEX and is directly logged on-chain, according to Yan. This makes it possible for everyone to instantly evaluate the solvency of the platform and independently confirm every transaction.
“The two main reasons fully on-chain DeFi is the best infrastructure for global finance are transparency and neutrality,” Yan said.
Leading CEXs, such as Binance, on the other hand, frequently underreport liquidation data. “Even if there are thousands of liquidation orders in the same second, only one is reported,” Yan explained. He thus thinks that underreporting during turbulent times might be caused by such techniques by up to 100 times.
Binance takes a different road
After Friday’s volatility led the assets to decline from their initial price, Binance, the largest cryptocurrency exchange in the world by volume, said that it had paid $283 million to users of three Binance Earn assets.
After Friday’s market downturn apparently led assets in three Binance Earn markets, including Ethena’s stablecoin USDe, Binance-issued Solana liquid staking token BNSOL, and Wrapped Beacon liquid staking token WBETH, to depeg from their intended value, Binance management issued an apology to users.
Crypto Market takes a serious hit
The biggest liquidations in cryptocurrency history, totalling about $19 billion, were brought on by last Friday’s market fall. Autoliquidations on a number of controlled exchanges, including Binance, Coinbase, and others, caused the numbers to rise to this high.
After the record wipeout, the CEO of Crypto.com has encouraged international regulators to look at centralised and decentralised exchanges.
Since its debut, Hyperliquid has expanded quickly, becoming one of the busiest decentralised perpetual trading platforms with its own Layer-1 blockchain.
In the last 30 days, it handled $291.75 billion in trade volume, while its DEX volume stood at $20.07 billion, according to DefiLlama. At press time, Hyperlquid has a market cap of $11.401b, and $HYPE is trading at $HYPE is $42.
Also Read: Hacker Steals $21 Million From A Hyperliquid User Through A Private Key Leak