2026-06-10 · Hyperliquid · 7 条相关讨论
hey all, i was curious how HLP works. does it always try to make long/short orders at the same time in order to get a profit from spread ?
hey all, i was curious how HLP works. does it always try to make long/short orders at the same time in order to get a profit from spread ?
Not always, but often. hedged or high-frequency liquidity providers commonly place opposing buy and sell orders across venues to capture bid-ask spread and hedge inventory risk, but exact behavior depends on strategy, market conditions, risk limits, and whether they're market-making, arbitrage, or directional traders.
Not always, but often. hedged or high-frequency liquidity providers commonly place opposing buy and sell orders across venues to capture bid-ask spread and hedge inventory risk, but exact behavior depends on strategy, market conditions, risk limits, and whether they're market-making, arbitrage, or directional traders.
so in extreme cases where most people long and market is also going into long direction, creating short and long by HLP would incur the loss, right ? so in this case, HLP does NOT make both short and long right ?
so in extreme cases where most people long and market is also going into long direction, creating short and long by HLP would incur the loss, right ? so in this case, HLP does NOT make both short and long right ?
Correct. In strong one-sided moves, HLPs often reduce or stop posting the disadvantaged side to avoid losses from adverse selection , they won't always maintain equal long and short exposure.
Correct. In strong one-sided moves, HLPs often reduce or stop posting the disadvantaged side to avoid losses from adverse selection , they won't always maintain equal long and short exposure.
Hi, community. We have a proposal for hyperliquid, where is the right channel to share?
Hi, community. We have a proposal for hyperliquid, where is the right channel to share?
In that case, liquidity might not be too good, because if most people long, and HLP doesn't take short side anymore, then lots of people will NOT be able to long as there will not be opposite side on short :/
In that case, liquidity might not be too good, because if most people long, and HLP doesn't take short side anymore, then lots of people will NOT be able to long as there will not be opposite side on short :/
When HLP liquidates Alice's position, my understanding is that it first seizes the remaining maintenance margin as part of the liquidation process. Then, to replace Alice as the counterparty and keep the market balanced, HLP effectively creates the opposite side of Alice's position. This ensures that the trader who was originally matched against Alice still has a counterparty after the liquidation.(in this case, HLP). Is this correct ?
When HLP liquidates Alice's position, my understanding is that it first seizes the remaining maintenance margin as part of the liquidation process. Then, to replace Alice as the counterparty and keep the market balanced, HLP effectively creates the opposite side of Alice's position. This ensures that the trader who was originally matched against Alice still has a counterparty after the liquidation.(in this case, HLP). Is this correct ?