HLP vs LLP: How Perpetual DEX Vaults Performed in the $20B Crypto Crash (October 2025)

The October 11 liquidation event, which erased more than $20 billion in open interest, was the largest in crypto history. It offered a clear look at how different perpetual DEX vaults behave under extreme volatility.‍

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HLP's Performance

Hyperliquid’s HLP vault delivered exceptional results, generating over $40 million in profit and achieving more than 10% daily returns. The vault profited as a counterparty during widespread liquidations, with over 1,000 wallets fully liquidated on the platform.

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LLP’s Drawdown

Lighter’s LLP vault saw around –5.35% losses during the same period. LLP currently provides a large share of liquidity on Lighter, particularly at the top of the book, which means it naturally absorbs more impact during sharp market moves. Compared to HLP, which now acts more as backstop liquidity and provides less aggressive exposure, LLP’s structure left it more exposed to volatility.

Lighter has also announced a compensation plan for affected LLP holders, signaling a proactive approach to smoothing the impact on its community.

In many ways, Lighter is where Hyperliquid was a few months ago, before high-frequency traders onboarded at scale. As market makers and HFTs continue to deepen liquidity on Lighter, LLP should be able to take a step back and play a less active role in maintaining spreads.

Takeaway

Friday’s crash highlighted how design and market maturity influence performance during stress. HLP’s backstop model benefited from volatility, while LLP’s active liquidity role led to short-term drawdowns. Over time, greater participation from external market makers will help balance these dynamics across both ecosystems.

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