Edgen Crypto·Nov 16 2025, 15:14
[1] Hotcoin Research: The responsibility, risks and future of the Curator model behind the stablecoin collapse (https://www.techflowpost.com/article/detail_2 ...)[2] DeFi Reflections: Four Stablecoins Gone to Zero in a Week, A Firm NO to "Backroom Deals" (https://vertexaisearch.cloud.google.com/groun ...)[3] The Culprit Behind Stream's Collapse: The Risks and Opportunities for DeFi Curators | Bitget News (https://vertexaisearch.cloud.google.com/groun ...)
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Nov 17 2025, 02:13
Aster Intensifies Growth Strategy with $10 Million Trading Competition and Airdrop Amid Layer-1 Development
## Executive Summary Aster has initiated a comprehensive strategy to enhance its platform depth and liquidity, marked by the launch of a $10 million trading competition, a Stage 4 Airdrop distributing 120 million ASTER tokens, and the advancement of its Rocket Launch program. These incentives are deployed as the platform progresses towards a hybrid model of on-chain order book infrastructure and incentive-driven growth, aiming for a steeper growth curve. ## The Event in Detail The **"Double Harvest"** trading competition, Aster's largest to date, commenced on November 17 at 00:00 UTC and will conclude on December 21 at 23:59 UTC. This competition features five weekly stages, each with a prize pool of up to $2 million, contingent on trading volume. A minimum perpetual trading volume of $100,000 is required for prize qualification, with top-three finishers needing at least $5 million in volume. Traders in eligible positions will receive double rewards. Prize pools scale with total perpetual trading volume: $1 million for less than $10 billion, $1.5 million for $10 billion or more, and $2 million for $15 billion or more. Concurrently, the **Aster Airdrop Stage 4, dubbed "Harvest,"** began on November 10 and runs until December 21, 2025. This stage allocates 1.5% of the total $ASTER supply, amounting to approximately 120 million ASTER tokens, distributed across six weekly epochs. The program emphasizes sustainable farming through enhanced point calculations and includes a reduced allocation for deflation compared to Stage 3 (1.5% from 2.5%), signaling a focus on token scarcity. Bonuses are offered for using ASTER as collateral to encourage token retention. Furthermore, Aster has unveiled **Rocket Launch**, a program designed to connect early-stage crypto projects with traders through liquidity incentives and token rewards. This feature integrates token launches, trading competitions, and continuous buybacks to strengthen Aster's on-chain ecosystem. ## Market Implications Aster's multi-pronged incentive strategy is a direct effort to catalyze trading activity and attract a broader user base. By orchestrating a large-scale trading competition and a substantial airdrop, the platform aims to significantly boost its perpetual trading volume and total value locked (TVL). This approach aligns with a broader industry trend of using token-based incentives to bootstrap network effects and liquidity in decentralized finance (DeFi) ecosystems. The requirement for using ASTER as collateral in the airdrop program and its role in governance, staking, and fee payment are designed to enhance the token's utility and foster long-term engagement. These initiatives are strategically timed with Aster's development of **Aster Chain**, its proprietary Layer-1 blockchain. This chain, currently in internal testing, is designed for high performance and privacy, leveraging zero-knowledge proofs (ZKPs) for verifiable on-chain activity. The reported surge in Aster's TVL from $366 million to over $1.78 billion in a single week, a 390% increase, following discussions of its Layer-1 plans, suggests a positive market reception to its infrastructural ambitions. The combination of aggressive growth incentives and foundational technology development positions Aster to compete more effectively within the Web3 landscape. ## Broader Context The deployment of significant capital towards user incentives and the concurrent development of proprietary blockchain infrastructure underscores a competitive environment in the decentralized exchange (DEX) and broader Web3 sectors. Platforms are increasingly adopting hybrid models that blend robust technical infrastructure with aggressive market penetration strategies. Aster's focus on a high-performance, privacy-focused Layer-1 with an on-chain order book aims to address scalability and user privacy concerns prevalent in existing blockchain solutions. The ASTER token's multifaceted utility—encompassing governance, staking, and fee payments—is central to this ecosystem, designed to ensure community involvement and network stability. This strategy reflects a push towards self-sustaining ecosystems where native tokens play a crucial role in economic and governance models.
Nov 17 2025, 01:20
Hyperliquid ZEC’s Largest Short Position Faces Over $22 Million in Unrealized Losses Amidst Price Surge
## Executive Summary The largest short position on Hyperliquid ZEC perpetual contracts has recorded over $22 million in unrealized losses, with a liquidation price set at $1112.45, indicating significant market pressure on **Zcash** (**ZEC**). ## The Event in Detail As of recent monitoring, a prominent short position on **ZEC** perpetual contracts on the **Hyperliquid** platform is facing an unrealized loss exceeding $22.04 million. This position holds a liquidation price point of $1112.45. On November 15th, 2025, **HyperInsight** monitoring indicated that a large **ZEC** short position, initiated at an entry price of $360.077 per coin with 5x leverage, had already reduced its size by $1.01 million and recorded an unrealized loss of $18.45 million, with its liquidation price at $973.4. Separately, as of November 16th, 2025, another significant short position, identified by address **0x7b7...2734e**, opened a 10x leveraged short for 31,015.92 **ZEC** tokens (approximately $21.43 million in value), showing a floating loss of $1.177 million, positioning it as the second-largest short on **Hyperliquid**. In contrast, the market also shows robust long interest. A top **ZEC** long position on **Hyperliquid** recently increased its holdings by 20,000 **ZEC** tokens, reaching a total of 60,000 **ZEC**. This position, valued at approximately $39.468 million, is currently showing a profit exceeding $6.2 million. Additionally, on November 8th, 2025, a newly established wallet deposited $6.27 million in **USDC** to **Hyperliquid** to open a long position on **ZEC** at $504. ## Financial Mechanics The substantial unrealized losses for short positions are directly linked to the recent price appreciation of **ZEC**. The **Zcash** price currently stands at $684.78. This represents a 30% increase from the previous week’s price of $527.16 and a 20% surge from the prior day’s price of $572.99. In high-leverage crypto trading, a liquidation price is the point at which a trader’s position is automatically closed by the exchange due to insufficient margin to cover losses. For positions with high leverage, such as the 5x and 10x leverage observed, even small price movements can significantly impact margin requirements, making liquidation a critical risk. The open interest for **ZEC** perpetual contracts on **Hyperliquid** was approximately $115 million as of October 30th, indicating substantial market activity. ## Market Implications The accumulation of significant unrealized losses in **ZEC** short positions, coupled with strong long interest, sets the stage for potential market volatility, including a **short squeeze**. If the price of **ZEC** continues its upward trend, these short positions could be forcibly closed, further fueling price increases. The listing of **ZEC** perpetual contracts on **Hyperliquid** has enhanced market liquidity for the asset, attracting both long and short traders. **Zcash** currently has a market capitalization of $11.06 billion, with a circulating supply of 16,312,576 **ZEC**, approximately 78% of its maximum supply. The fully diluted valuation for **Zcash** amounts to $14.24 billion. Market activity shows a 57% change in buyers and a 106% change in sellers, with a total of 15,234 trades, reflecting dynamic trading conditions. This scenario highlights the ongoing tension between bearish and bullish sentiment in the **Zcash** market. ## Broader Context The current situation illustrates the magnified risks inherent in leveraged derivatives trading within volatile cryptocurrency markets. Large unrealized losses in short positions can quickly lead to cascading liquidations, creating feedback loops that accelerate price movements. Traders are advised to meticulously calculate liquidation prices and manage leverage to mitigate risks. The increased open interest and liquidity on platforms like **Hyperliquid**, which has a total open interest of $7.71 billion, demonstrate the growing sophistication and activity in the decentralized finance (DeFi) derivatives landscape, where significant capital is deployed in high-stakes positions.
Nov 17 2025, 00:45
Cardano Holder Incurs $6.05 Million Loss in ADA-to-USDA Swap Due to Low Liquidity
## Executive Summary A Cardano wallet holder, active after five years, executed a swap of 14.4 million **ADA** tokens for 847,000 **USDA**, incurring a $6.05 million loss due to low liquidity in the trading pool. ## The Event in Detail An on-chain transaction reported by investigator **ZachXBT** revealed that a Cardano wallet, dormant for approximately five years, exchanged 14.4 million **ADA** tokens, valued at approximately $6.9 million, for 847,000 **USDA** stablecoins. The immediate consequence of this swap was a realized loss of $6.05 million for the wallet holder. This incident highlights specific challenges within decentralized finance (DeFi) ecosystems, particularly concerning market depth for certain assets. ## Market Implications The substantial loss is directly attributable to the low liquidity present in the trading pool at the time of the transaction. Low liquidity in a trading pair can cause significant price slippage, especially with large orders, leading to temporary price spikes that are unfavorable to the transacting party. **USDA** is a stablecoin native to the Cardano blockchain, developed by **Anzens** for global payments and cross-border transactions within the Cardano ecosystem. While designed for stability, the trading pair’s liquidity proved insufficient to absorb a large sell order of **ADA** without severe price impact. This event underscores the inherent risks associated with providing and utilizing liquidity in DeFi, including impermanent loss and the potential for drastic price movements when market depth is shallow. At the time of the incident, **ADA** was trading at $0.48, reflecting a 5.5% decrease in the prior 24 hours, according to CoinGecko data. ## Expert Commentary Industry analysis frequently points to liquidity risk as a critical factor in decentralized exchange operations. When a trading pool lacks sufficient assets to match a large transaction, the execution price can diverge significantly from the expected market rate, resulting in substantial losses. This phenomenon is distinct from impermanent loss, which arises from price divergence between pooled assets, but both highlight the complexities for liquidity providers and large traders in DeFi. The incident serves as a cautionary tale regarding the necessity of assessing available liquidity before executing significant token swaps, particularly with assets on newer or smaller protocols. ## Broader Context The decentralized finance market continues to expand, projected to reach $78.49 billion by 2030 from $51.22 billion in 2025, with an 8.96% Compound Annual Growth Rate (CAGR). This growth is driven by regulatory clarity, such as the EU’s Markets in Crypto-Assets framework, and the increasing institutional adoption of tokenized real-world assets. Despite this expansion, incidents like the **ADA**/**USDA** swap emphasize that liquidity remains a critical vulnerability, especially for less established stablecoins or smaller trading pools. While institutional interest in tokenized assets is growing, converting sidelined liquidity into on-chain positions, individual large transactions can still face significant friction and financial risk in markets with insufficient depth. This event may lead to increased scrutiny of liquidity provisions in emerging DeFi markets and promote more cautious trading strategies among large digital asset holders.