TL;DR
- The Lighter DEX faces scrutiny over alleged undisclosed deals and unfair airdrop allocations to market makers like Jump Trading.
- Hyperliquid positions itself as a neutral alternative, pledging no private deals, fees, or preferential treatment.
- While Lighter has gained market share, Hyperliquid’s share has fallen from 75% to under 19%.
Allegations around Lighter DEX and undisclosed deals with market makers such as Jump Trading and Kelsier Labs under Hayden Davis triggered heavy scrutiny. Hyperliquid stepped in and drew a hard line on credible neutrality. Founder Jeff Yan set the idea: “Integrity” as a core value, no private investors, no market-maker deals, and no protocol fees flowing to any company. Yan also remarked that a fairness rulebook can irritate users and builders who expect privileged treatment.
Airdrops under scrutiny and the rise of undisclosed wallets
An on-chain analyst reported five undisclosed addresses receiving USD 26 million in LIT after USD 5 million in liquidity. The thread also pointed to an airdrop for Jump Trading tied to a market-making arrangement. Kelsier Labs accumulated USD 11.52 million in LIT, and Justin Sun earned rewards as an early LP. Lack of early disclosure fueled anger across forums. Web3 researcher ZachXBT fired a sharp line: “crime pays.”
One user called the distribution “very blatant” and questioned how many more airdrop addresses remain hidden. The Lighter team issued a statement acknowledging early arrangements with liquidity providers and market makers. Skepticism persisted. Critics argued that founder Vlad treated airdrop allocation as a settlement tool outside the public points program, undermining trust around rewards and access.
Hyperliquid amplified a counter-message
Yan repeated the credible neutrality pledge: no side deals, no protocol fees captured by a corporate vehicle, and a flat rule set for all order-flow. The pitch targets traders who value symmetric access and price discovery without back-room terms.
Hyperliquid now holds under 19% market share, far from a 75% peak in May. Lighter gained traction during recent months and pulled incremental flow. The shift suggests that liquidity responds not only to principles, but also to incentives, order-book depth, and uptime. Builders can advertise clean governance; order-flow still follows fills, spreads, and continuity.
Opaque airdrop flows can erode trust, inflate the cost of attracting liquidity, and complicate future listings. A neutral framework without private deals can reduce political friction, yet demands a strong matching engine, stable funding rates, and low latency to keep professional volume in-house. Traders price ideals, but they also price slippage and queue priority.
For active desks, the near-term map mixes risk and opportunity. Lighter DEX shows growing liquidity, while lingering questions over undisclosed allocations refuse to fade. Hyperliquid offers austere governance and level rules, while operating with lower dominance than in spring. Order-flow will pass judgment.
If controversy raises the cost of capital for Lighter, part of the volume could rotate toward venues with clearer rule sets. If depth and rebates hold up, many will tolerate the noise in exchange for tighter execution.
