In just two weeks, an unknown crypto trader is said to have made 6.800 US dollars 1.5 million dollars. With this, he has more than two hundredfold.
Instead, the crypto connoisseur has developed a sophisticated market-making strategy that capitalizes on discounts at maker fees in particular.
Taker (investors who use already existing offers from the order book) pay a fee. Maker (Traders who put a limiting order into the book that is then filled) get a negative fee, so earn from it.
Although these amount to only about 0.003 percent per filling, this amounts to about 0.03 US dollars per 1,000 US dollars traded. With the help of automated bots and an infrastructure optimized for latencies, however, he was able to quickly scale this return.
The strategy also kept the net Delta exposure – its vulnerability to negative price developments – always lower than 100,000 US dollars and avoided large blowups.
In silence, he became a significant source of liquidity on Hyperliquid, the largest platform for Perpetual Futures, for which Arthur Hayes recently predicted a 126-fold rise.
In contrast to classically symmetrical market make-up, he sold either buy or sell orders – never at the same time. On platforms such as Hypurrscan.io, he was subsequently titled “Liquidity Ghost”.
Over a period of two weeks, the trader moved a volume of around 1.4 billion US dollars. This is only possible with a late-northwest-optimized execution: bots that run on collaborated servers and are closely synchronised with the order books of the stock exchange.
The strategy for a normal private investor is therefore not easily replicable. There are also doubts about the combined return. Furthermore, the model is not entirely without risks. After all, bots can also crash, exchanges and other technical faults can bring the whole system to a standstill.