Hyperliquid: Dismissing Profit Rumors and Prioritizing Risk Control in the DeFi Arena

Hyperliquid founder Jeff Yan addresses profit rumors, emphasizing risk control as the platform's priority amid growing competition in the decentralized derivatives market.

Hyperliquid: Dismissing Profit Rumors and Prioritizing Risk Control in the DeFi Arena

Hyperliquid, a decentralized exchange, has been making waves, and not just for its impressive performance. Amidst growing speculation about the platform's priorities, founder Jeff Yan has stepped forward to set the record straight: risk control comes first.

Risk Control Over Revenue: Hyperliquid's Stance

Yan addressed claims about Hyperliquid's focus on protocol profits as "nonsense," emphasizing that the platform's systems are designed to protect traders. He pointed to automatic deleveraging (ADL) events as evidence. On October 10, traders reportedly made "hundreds of millions" in gains as profitable short positions were automatically closed at optimal prices. Yan argued that while relying on backstop liquidations could have generated more revenue for the platform, it would have exposed users to unacceptable levels of risk.

"The ADL system lets profits stay with users while keeping exposure under control," Yan stated, highlighting the platform's queue-based mechanism, modeled after centralized exchanges but simplified for reliability and transparency.

Competition Heats Up in the Perps Arena

Hyperliquid's success has positioned it as a benchmark for newer perpetual DEXs. Aster, which launched its token earlier this month, briefly surpassed Hyperliquid in both volume and open interest, signaling an increasingly competitive landscape. Despite strong competition, Hyperliquid dominates the DEX space with a massive $5 billion in total value locked (TVL), commanding over 60% market share.

HYPE's Supply Crunch

Hyperliquid [HYPE] has jumped to the top of the perpetual DEX market. As token supply continues to fall and demand stays strong, a supply crunch may be just around the corner.

Hyperliquid's Buyback Program

Hyperliquid’s ongoing buyback program has accumulated an impressive $521.85 million since March 2025, repurchasing 15.26 million HYPE tokens; about 5.64% of the circulating supply.The accumulation, funded through protocol fees, proves strong treasury activity despite recent price dips.

A New Power Center in Crypto Derivatives

Despite being far smaller than centralized giants like Binance or Coinbase, Hyperliquid has achieved extraordinary performance metrics. Monthly trading volumes across the perpetuals sector now exceed $6 trillion, and Hyperliquid’s growth suggests decentralized venues are becoming the new battleground for derivatives traders.

For Hyperliquid, navigating the uncertainties of the crypto derivatives market may be its greatest advantage.

So, while the crypto world keeps spinning, Hyperliquid seems determined to keep its users safe and sound. Who knows, maybe one day we'll all be trading perpetuals with a smile on our faces. Until then, keep your eyes on Hyperliquid – they're definitely one to watch!