One trader VS. Hyperliquid’s HLP vault.

$4M gone. No bug. No exploit. Just a brutal game of liquidity mechanics.

Here’s how they pulled it off. 🧵👇 1/ What Happened?

A trader turned $10M USDC into a $271M ETH long using high leverage, then withdrew collateral, forcing HLP to take the trade.

They walked away with $1.8M profit, while HLP ate a $4M loss.

Here’s how it worked ⬇️

🚨 Monad Testnet is LIVE. A new high-speed EVM chain just dropped.

8.8M wallets preloaded. 5,000 TPS. Transactions flying.

But can it actually handle real DeFi? Is it secure? What happens when you push it to the limit? Let’s find out. 🧵👇 1/ What is Monad?

Monad is a new EVM-compatible chain aiming for insane speed & efficiency.

✅ High-speed execution (5,000 TPS)

✅ MEV-resistant architecture

✅ Optimized for DeFi trading

But it's a testnet. Things will break. And that’s the point. Time to stress test.

🚨 Something wild is happening at MakerDAO & no one is talking about it.

• Emergency governance vote out of nowhere.
• MKR borrowing limits 2x overnight.
• Critics banned mid-vote.
• No clear reason why.

Is this a governance attack? A power grab? Or something worse? 🧵👇 1/ Yesterday, an "out-of-schedule" proposal hit the MakerDAO forum.

• It passed in record time.

• It dramatically increased the amount of USDS that can be borrowed against MKR.

• It lowered collateral requirements from 200% to 125%.

What is happening? 🤔

🚨 HyperEVM is here. A new era of on-chain trading, perps, & DeFi infra begins.

But what is HyperEVM? Is it safe? How does it work? Where’s the risk?

Here’s the full breakdown (No shilling, no FOMO—just facts). 🧵👇 1/ What is HyperEVM?

HyperEVM is Hyperliquid’s new Layer 1 blockchain designed for:

✅ On-chain trading (Perps, Spot, Options)
✅ DeFi protocols (Lending, AMMs, Staking)
✅ High-speed execution with MEV resistance

Think Solana speed + Ethereum dev compatibility + Hyperliquid perps—but it’s new, and new means risk.

🚨 Discover everything about DeFi AMMs! 🚨

Our latest blog covers how AMMs have transformed DeFi—exploring the models, innovations, and challenges shaping the space today.

👉 Read the full article here:

Let’s dive in 🧵👇threesigma.xyz/blog/automated… 1/ In this series, we explore AMM protocols, anchoring our analysis around fundamental variables that dictate their performance and adoption. 🧑‍🏫

Our goal is to provide a comprehensive understanding of the differences and operational efficiencies across AMM protocols and models.

Our Points Aggregation Series is now live! A deep dive into 70+ #DeFi protocols and how they implement their incentive programs.

Points have been responsible for the new era of liquidity mining rewards.

Discover everything here: threesigma.xyz/blog/points-one The article filters protocols across most of the core areas of #DeFi, including money markets, DEXs, Perp-DEXs, infrastructure, and chains, all analyzed together in a unified framework.

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Restaking has been one of the strongest narratives of 2024.

How has the Restaking ecosystem evolved and what has changed since @eigenlayer introduced this concept to the blockchain?

Let's dive deeper into the state of this new industry 🧵 1/ #Restaking is one of the newest blockchain sectors.

The practice of restaking LSTs and native assets introduces a way to share security from one blockchain to support other less developed chains/protocols.

We are happy to share our latest article exploring the current tokenomics landscape in DeFi. In this piece, we break down the most relevant token mechanisms and how different protocols use them.

Read it here:

1/8
threesigma.xyz/blog/defi-toke… We developed a systematic approach to examine the mechanisms employed by various protocols. Our analysis focuses on three key elements: reward access, value, and distribution.

2/8

We are excited to announce that Three Sigma has invested in @ArrakisFinance, the leading decentralized market-making infrastructure protocol for web3.

Read our investment thesis at threesigma.xyz/blog/investmen….

1/5 By providing users with automated, transparent, and non-custodial liquidity management, Arrakis addresses challenges faced by @Uniswap V3, such as information asymmetry, incentive alignment between protocols and liquidity providers, and a lack of market-making tools.

2/5

Three Sigma is excited to publish our economic model report for @YetiFinance. In this thread we’ll explain how the economic model we built assisted the Yeti team in defining appropriate system parametrizations as well as ensuring the overall protocol’s health.

1/14 For an in-depth look at the mechanics of Yeti Finance, full model description, and simulation results here is the complete report:

github.com/threesigmaxyz/…

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