- Jeff Yan rejected CZ’s criticism after James Wynn’s $ 100 million BTC Liquidation Hunt.
- Yan claimed that insiders and operators can play ‘Dark Pools’ privately that is advocated by CZ.
Hyperliquid [HYPE] Founder Jeff Yan has been shot back on Binance [BNB] founder Changpeng Zhao (Cz) For the advocation of open positions of private traders as the best approach to prevent the liquidation hunt in Defi -trade.
In an x (formerly Twitter) message on 3 June, Yan expressed”
“Users are less quickly hunted if everyone knows liquidation and the prices stops when only the Exchange Operator (CEX) knows.”
Yan suggested that only ‘margin privacy’ or liquidation level must be kept secret to prevent a ‘liquidation yacht’.
Liquidation level is a price that, when touched, an automatic liquidation of a margin or lifting tree position will activate the CEX (centralized exchange) or DEX (decentralized exchange).
Hyperliquid better for whales?
Yan, however, noted that Cexes have a trade with prior knowledge and operators with access to the margin data of the promoted ‘private’ pools. As a result, CEX operators can hunt whale positions.
He said that the liquidation hunt could be reduced if the swimming pool (open positions) is public, such as Hyperliquid Dex. In this way, a whale can mislead liquidation hunters to prevent and get market input with a discount.
Source: Jeff.hl/x
The debate was fueled after the BTC position of Hyperliquid Whale James Wynn was liquidated after an aggressive yacht last week.
In response, CZ criticized The public swimming pools of Hyperliquid, which he claimed he allowed everyone to see other whales and to see at the front. In addition to liquidation yachts, CZ has shared high slips and costs for traders on such platforms.
As a solution, he presented private – -based Dexes on ‘Dark Pools’, pulling parallels from Tradfi,
“I think it is now a good time for someone to launch a dark Pool Perp Dex. I am always surprised that everyone can see your orders in real time on a Dex.”
Yan, however, claimed that even dark swimming pools can be game by insiders and operators. It is interesting that founder of Wintermute Evgeny Gaevoy view This crypto -witter drama as an extensive promotion for the hyperliquid.
“But in general I think that ‘Wynn’ is just a well-executed HL promo campaign, well played.”
Amidst the drama, Binance Exchange, the American subsidiary, announced It would state the hype of hyperliquid in its place trade platform.
“The $ hype is real. Spot trade for hyperliquid will soon come to Binance.us.”
The update sent the hype more than 12% above $ 35, so that the $ 40 price target Within reach.