Ventuals experiences HYPE Withdrawal Run, the team will temporarily suspend withdrawals and provide 85% buyback support
BlockBeats News, March 16th, HYPE Run on Ventuals’ HIP-3-based trading platform experienced a withdrawal squeeze. The HYPE-backed liquidity token vHYPE issued by Ventuals briefly dropped to $9 and has now rebounded to $31, with the current HYPE price at $37.5. vHYPE still carries an approximately 18% discount.
Hyperliquid’s HIP-3 allows anyone to deploy their own perpetual contract sub-DEX but requires a minimum of 500,000 HYPE to be staked. After absorbing users' HYPE, Ventuals issued liquidity tokens vHYPE; however, its treasury is now close to the minimum 500,000 HYPE staking threshold, leading to user panic redemptions.
Ventuals CEO Alvin Hsia stated that this is not a bug but a feature of the design rules themselves. Withdrawals will be paused as the withdrawal nears the treasury threshold to avoid disturbance to traders in the Ventuals market. Ventuals is collaborating with private LPs to increase HYPE holdings. Ventuals and its partners will provide exchanges via the primary secondary liquidity pool at a 0.85:1 vHYPE to HYPE ratio as the ultimate discount floor. Users requiring immediate liquidity can exit with a guaranteed maximum 15% discount.
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