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first_img Hyperliquid Co-Founder: Self-Custody and Transparency are the True Advantages of On-Chain Finance

According to The Block, Jeff Yan, co-founder of the decentralized perpetual contract trading platform Hyperliquid, stated during a fireside chat at the Korea Blockchain Week 2026 that around-the-clock trading is not the essential difference between on-chain trading venues and traditional exchanges. He pointed out that cryptocurrencies do not need to adhere to traditional market opening hours because these assets inherently possess international attributes, and some traditional exchanges have already begun to actively extend their trading hours.Yan emphasized that the more enduring value of on-chain finance comes from allowing users to retain control and custody of their funds, which helps to avoid a common single point of failure risk. In his view, once a counterparty, intermediary, or even custodian encounters issues, the ability to self-custody becomes particularly crucial.In addition, transparency constitutes another distinct feature of on-chain trading. Although it does not have a strong appeal in serving ordinary consumers, it is essential for building trust in the entire system. In a system controlled solely by a private organization, users cannot obtain the same level of trust and neutrality guarantees.He also mentioned that for assets lacking publicly available prices during the closing hours of traditional exchanges, continuous trading remains necessary. He cited commodities, stocks, and Pre-IPO targets that had already traded on Hyperliquid before the reference market opened as examples to illustrate that the demand is indeed real.

Viewpoint: The Bessen effect makes it difficult for Bitcoin to return to a true bull market; the main reason for the price increase is short covering

Bloomberg reporter Emily Nicolle stated that Bitcoin recently rose 23% in a single week, marking the largest weekly increase in over three years and ending a period of stagnation since summer. U.S. Treasury Secretary Janet Yellen proposed expanding the scale of long-term Treasury bond repurchases, prompting market concerns about U.S. debt and dollar depreciation, which drove funds toward alternative assets like Bitcoin. However, after Bitcoin surpassed $80,000, it has stabilized again, and this catalyst alone is insufficient to bring the market back to a true bull market state.Nicolle pointed out that the narrative of Bitcoin as a hedge against the dollar and inflation still lacks sustainability. After Trump reiterated threats of tariffs against China last October, Bitcoin fell over 12% within 24 hours, while gold reached an all-time high during the same period. Since 2026, gold has cumulatively risen over 7%, while Bitcoin, even accounting for the recent rebound, has still fallen nearly 10%. She believes that the simultaneous rise of gold and Bitcoin last week does not prove that both have the same safe-haven properties, as much of the current crypto market rally is driven by short sellers being forced to cover their positions. Strategy Chairman Michael Saylor called on traders to continue buying Bitcoin during the rise, but his company did not increase its holdings accordingly.In addition, the CLARITY cryptocurrency market structure bill remains stalled due to disagreements over ethical provisions, with the Senate expected to reconsider it by mid-September, leaving limited time before the midterm elections in November. Bitcoin has yet to establish a stable and convincing value narrative, and in daily payments, users still prefer to use stablecoins or cash.

Andre Cronje: Nowadays, many DeFi protocols are no longer true DeFi in the real sense, and the industry is debating whether a circuit breaker mechanism should be introduced

Andre Cronje stated in an interview with Cointelegraph that many DeFi protocols today are "no longer truly DeFi" and are more like "profit-driven companies operated by teams," as they generally rely on upgradable contracts, multi-signatures, off-chain infrastructure, and manual operational control.Cronje pointed out that the current industry is still overly focused on smart contract audits while neglecting operational risks that are closer to traditional finance (TradFi). He believes that recent attack incidents are not due to code vulnerabilities but stem from off-chain infrastructure, permission management, and social engineering attacks.The discussion arises from the recent frequent security incidents in DeFi. In April, protocols such as Flying Tulip, Drift Protocol, and Kelp encountered security events, with Drift and Kelp suffering losses of approximately $280 million and $293 million, respectively.In response, Flying Tulip has introduced a "Withdrawal Circuit Breaker," which can delay or queue withdrawal requests when unusually large withdrawals occur, allowing the team about 6 hours to respond. Cronje emphasized that this mechanism does not permanently freeze withdrawals but serves as a layer of protection within the security system.However, Michael Egorov holds a cautious attitude towards this. He stated that the circuit breaker itself could also become a new point of centralized risk. If control permissions fall into the hands of an attacker, the mechanism originally intended to protect the protocol could instead be used to freeze assets or directly transfer funds.Egorov believes that the long-term direction of DeFi should be to minimize human intervention and centralized permissions as much as possible, rather than adding more layers of manual control. "The security of DeFi comes from decentralization, not more human management."
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