The recent Hyperliquid outage ⚠️ has brought back the debate about trading infrastructure and why DEXs matter.
Let's break down the real differences between VDEX, Hyperliquid, and traditional CEXs:
The Hyperliquid Outage: What Happened?
Hyperliquid's frontend went down for several minutes:
- Users couldn't place/close orders
- Withdrawals were blocked
- Backend kept running, but frontend was dysfunctional
- Community panic about liquidations
CEXs like Hyperliquid only offer centralized frontends, meaning that even with a "decentralized" backend, users are still at the mercy of a single party.
But when SAFE's frontend got hacked, users could still access funds through trustless frontends:
The principle of Full Self-Custody must be immutable and absolute.
- Binance: Fully centralized, claims to be centralized
- Hyperliquid: Centralized frontend, 21 validator blockchain, claims to be decentralized
- VDEX: Fully trustless, we even put DEX in our name
This middle compromise might be the worst of all. It claims to offer decentralization, but falls short as we saw in yesterday's outage.
Exchanges must strive to be like SAFE, fully decentralization throughout the stack.
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