🔥 LIGHTER AND HYPERLIQUID LOOK SIMILAR, BUT TAKE TWO DIFFERENT PATHS.
The key question is: Who decides whether a trade is valid or not?
🌪️ Hyperliquid: Fast, versatile, but requires trust in the operator.
According to @HyperliquidX, a trade is considered completed when all 24 validators agree. In simpler terms, the order is matched because "everyone in the group confirms that it was matched."
This method is extremely fast, can handle large volumes, and, importantly, allows for manual intervention in case of problems. For example, in the case of a JELLY pair rollback, validators can work together to modify the history to protect the ecosystem.
But in return, users have to place their trust in the validator:
- They believe they are following the trading logic displayed by the system.
- I believe they didn't rearrange the order to profit from the difference.
- I believe they will not abuse their power when the market is highly volatile.
If the validator stops the chain or blocks withdrawals, your assets will also… stand still.
🧮 Lighter: Slower, more rigid, but doesn't need to trust anyone.
Conversely, @Lighter_xyz chose to let mathematics be the arbiter.
Each matching order must be accompanied by Cryptographic Proof that:
That order actually exists.
- The match price was the best at that time.
- Orders are executed in the correct order, without cutting in line.
If the system intentionally executes orders at a price more unfavorable to the user, or front-runs the user, then no proof will be generated. It's like asking a mathematician to prove 2 + 2 = 5—impossible.
This proof is submitted to @Ethereum, and the Ethereum network itself has the final say. If correct, the status is updated; if incorrect, it is rejected. There are no gray areas.
The weakness is the lack of "human intervention." If the order matching system malfunctions, causing a transaction that, while compliant with the code, results in significant losses (such as price manipulation), the system must still accept it.
🚨 When a major incident occurs, who will protect your assets?
With Hyperliquid: if the chain stops or the validator doesn't cooperate, you have no way out, because your assets are on their chain.
With Lighter: if the exchange disappears, users can withdraw their funds directly on Ethereum. If the system becomes unresponsive after a period of time, an emergency exit mode is activated, allowing everyone to withdraw their own funds.
In summary,
Hyperliquid is like a "very good platform, operated by trustworthy people."
Lighter is like a "mathematical machine, running exactly as programmed."
What are your thoughts on this song, fellow Hyperliquid fans?
✍️ Qing (according to @DeFi_Cheetah from Velocity Capital)
twitter.com/gm_upside/status/2...
