The DEX perpetual wars aren’t slowing down anytime soon.
In the wake of the ongoing Lighter DEX FUD for its alleged partnership with perceived “extractive” market makers such as Jump Trading and Hayden Davis, the architect behind the Libra memecoin scandal, Hyperliquid, has jumped on the chaos.
In a press release, the founder of Hyperliquide Jeff Yan positioned the DEX as a better and “credibly neutral” option, noting that,
“Integrity has always been one of Hyperliquid’s core values. The home of all finance must be credible and neutral. This means no private investors, no market maker transactions and no protocol fees for any company.”
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He lashed out at those who were uncomfortable with Hyperliquide’s strict stance and added:
“This principle of fairness frustrates some users and manufacturers who are used to preferential treatment. »
Unboxing the DEX FUD lighter
Latest Lighter FUD appeared after analyst discovered that five undisclosed wallets received $26 million in lighter (LIT) after providing liquidity worth $5 million. The analyst note that Jump Trading received a LIT airdrop as well as part of a market making agreement.
Kelsier Labs, the venture capital firm led by Hayden Davis, received LIT$11.52 million.
Additionally, Tron founder Justin Sun was recognized for being an early liquidity provider. However, according to the on-chain researcher, some of these details were not disclosed to the community early enough.
Following the revelations, Web3 researcher ZachXBT sarcastically thunderstruck Lighter, affirming that “crime pays”.
One of the community users criticized the opacity of the help and said,
“It’s pretty bad and very blatant. Who knows how many other malicious drop addresses there are.”
Amid the scrutiny, the Lighter team released a statement and revealed that it had reached an early agreement with liquidity providers and market makers. Despite this, some users doubted this insurance because it joked,
“It’s funny that Vlad (founder of Lighter) seems to think it’s okay to make side deals and use Lighter’s airdrop allocation as a settlement tool with third parties, outside of the public points program.”
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The dominance of hyperliquids falls
At the same time, Hyperliquide’s market share increased abandoned below 19% as competitors such as Lighter gained ground.
The dominance of hyperliquids peaked in May at 75%. However, it has been declining for several months, stabilizing between 19% and 20%.
Source: Dune
On price charts, HYPE was up about 2% and valued at $24.8 at press time, following Jeff Yan’s remarks. However, it remained stuck in the short-term price range between $23 and $26.
Removing broad resistance levels at $26 and $27 could allow for further recovery if overall market sentiment improves.
Source: HYPE/USDT, TradingView
Final Thoughts
- The founder of Hyperliquid defended his position by preventing market makers from accessing the platform.
- However, its market share fell from 75% to 19% due to increasing competition from Lighter and others.
