The Chopping Block: Hyperliquid vs. Tarun, ADL Transparency & The Coming Perps Arms Race - Ep. 984

In this episode of The Chopping Block, Haseeb Qureshi, Tarun Chitra, and Vlad Novakovski discuss the recent drama surrounding Tarun's research paper on auto-deleveraging (ADL) in crypto perpetual markets, particularly focusing on Hyperliquid's ADL practices. They delve into the complexities and fairness of different ADL algorithms, the importance of predictability for traders, and the challenges of balancing risk and fairness in decentralized exchanges. Vlad shares insights into LIDAR's approach to ADL and its fee model, which offers zero-fee trading with increased latency. The conversation also explores the competition in the crypto perps market, the potential of real-world asset (RWA) perps, and the evolving relationship between tokens and equity in crypto projects, using Axelar's acquisition by Circle and Aave's fee structure as examples.