According to Gate.io News bot, as reported by Wu, Jeff, the co-founder of Hyperliquid, explained the operational mechanism of the HLP protocol vault. HLP, as a permissionless protocol vault pioneered by Hyperliquid, has returned $60 million in profits to depositors and does not charge deposit fees.
Jeff pointed out that, unlike the profit model of the market-making department within centralized exchanges, HLP primarily undertakes two functions: market-making and backup clearing. In terms of market-making, HLP adopts a passive strategy, with a trading volume share of less than 2%. Regarding backup clearing, HLP is responsible for taking over positions that cannot be cleared in the market.
Jeff also clarified that the claims regarding the platform's solvency risk are not true, but acknowledged that there is a risk exposure to manipulation in HLP.