Gate News, March 16 — A HYPE withdrawal run occurred on the trading platform Ventuals, based on the Hyperliquid HIP-3 protocol. The HYPE liquidity staking token vHYPE issued by Ventuals briefly plummeted to $9, then rebounded to $31. The current HYPE price is $37.50, with vHYPE still trading at approximately an 18% discount.
The Hyperliquid HIP-3 protocol allows anyone to deploy perpetual contract sub-DEXs, but requires staking at least 500,000 HYPE. After accepting user HYPE, Ventuals issues the liquidity staking token vHYPE. However, its treasury is now close to the minimum 500,000 HYPE staking threshold, triggering user panic withdrawals.
Ventuals CEO Alvin Hsia responded that this is not a system bug but a design rule. Withdrawals will be paused when the treasury approaches the threshold to prevent disruption to traders in Ventuals’ market. Ventuals is working with private LPs to increase HYPE holdings. Ventuals and its partners will offer redemptions at a 0.85:1 vHYPE to HYPE ratio through major secondary liquidity pools, serving as the final bottom line for discounts. Users seeking immediate liquidity can exit at a maximum 15% discount.
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