In a post on X (formerly Twitter), popular trader James Wynn, a distributed exchange lipid, publicly criticized the platform’s incentives, warning that if evolution fails, the number of days could be counted.
His comments come amid growing expectations for a new distributed exchange (DEX) developed by Binance founder Changpeng “CZ” Zhao.
Win I wrote it in his post That he hasn’t been paid a penny due to high lipids. He said:
Wynn acknowledges that Hyperliquid’s decentralized nature may explain the lack of traditional sponsorship structures, but his frustration was clear.
Despite the platform’s high traffic and trading volume, Wynn claims he only made $34,000 through referrals.
Wynn also criticized Hyperliquid’s referral program, which the program says sucks. He went on to state that other platforms have far better referral programs.
The liquidation that probably caused the explosion
Wynn’s comments follow the major and publicly recorded liquidation of high lipid Dex. In one of the biggest surrenders in late May, his massive long position, where Bitcoin is reportedly worth more than $1.1 billion, was liquidated from the full perspective of the $100 million market after Bitcoin fell below $105,000.
His visibility of open positions raised suspicions that he was “hunted” by other traders who used transparent purchase orders, a controversial feature of decentralized finances.
The incident sparked debate across Crypto Twitter, leading to questions about current DEX designs and how to expose large traders to manipulation.
Wynn’s post appears to reflect the pain of the event, pointing straight to what he considers as a solution: a new kind of Dex that keeps large deals private.
CZ’s Dark Pool Dex enters the mix
Just as Binance founder CZ prepares to launch the new “dark pool” Perpetuals Dex, Wynn’s warning to Hyperliquid is exactly what happens.
According to CZ, the new platform allows users to deposit assets in chains, but allows them to place orders personally, a model designed to prevent front rotation, MEV (minor extractable values), and liquidation attacks.
CZ told him I’ll post it on x“If you’re trying to buy a token worth $1 billion, you usually try not to notice it until another person has completed your order.”
Details are still lacking, but the project is already touted as a potential game changer for defi.
Wynn expects CZ to win unless they “level up” high lipids
In his criticism, Wynn revealed that CZ views entry into the DEX market as a serious threat to current players.
“When CZ starts DEXing the Dark Pool, it will put an end to high lipids,” he warned. “CZ has money, networks, teams, builds things like other people. Look at what he did with Binance.”
While this may seem like approval of CZ’s new venture, it is also a call for weapons for high liquids. This is a signal that the platform must improve not only its incentive structure, but also its technical architecture if it wants to preserve its user base.
“I hope this will encourage high lipid levels,” Wynn said.
Hyperliquid has a strong lead in the persistent DEX market. Source: CoinMarketCap
For now, Hyperliquid is a runaway leader in the permanent Dex market, and has been on a nearly upward trajectory since its launch. It holds the dominant 62% of market share, with Aster as its closest competitor at around 27%. It also processed about $25.7 billion over the past 24 hours.
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