I just saw a group member say @ altdotfun. I went to take a look and felt that there are really too many newcomers in the cryptocurrency industry Simply put, his gameplay is leveraged position tokens, such as 3x long BNB or 3x long Ethereum, where each token is equivalent to a leveraged position Every leveraged coin, like @ Pumpfun, has graduation, which is equivalent to raising a certain amount of money before opening this position in hyperliquid For example, if a user buys 5x long ETH for $100 and ETH unexpectedly drops by 10%, then the user has: -Perp position floating loss=$500 × 10%=$50 -User Rights=$100- $50=$50 -Current actual leverage=$450 nominal position/$50 net asset value=9x leverage So rebalancing is: Alt closes $200 nominal position → remaining $250 nominal position/$50 net worth=5x leverage But what if it rises back? Do you think we should go back to $100? wrong! After rebalancing, the position is only $250, up 11.11% to return to the original price → the net value has increased to $50 x (1+5 x 11.11%)=$50 x 1.56=$78 You lost $22 (22%), but the ETH price hasn't actually changed What I actually don't understand is whether this mechanism can guarantee "never settling" under extreme unilateral waterfall and ultra-high sustained rates Why do I say there are too many newcomers? Because as early as the 2018/19 Wansuo War, his mechanism included Binance FTX、 Huobi has been made, even in Vietnam Exchange at that time Of course, the advantage is that it is more transparent on the chain and not a black box. But in fact, this mechanism has a higher holding cost than actually opening a contract The HyperEVM ecosystem is really crossing the river by feeling the predecessors of Chinese exchanges