{"id":52836,"date":"2025-10-14T17:31:57","date_gmt":"2025-10-14T17:31:57","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=52836"},"modified":"2025-10-14T17:31:57","modified_gmt":"2025-10-14T17:31:57","slug":"kanye-west-yzy-meme-coin-vault-on-lighter-getting-short-squeezed-will-yzy-usdt-10x","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=52836","title":{"rendered":"Kanye West YZY Meme Coin Vault On Lighter Getting Short Squeezed: Will YZY USDT 10X?"},"content":{"rendered":"
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What if you get in a trade and can\u2019t get out? Inception-kind of dream \u201cstuck.\u201d That\u2019s precisely what\u2019s happening to one rather small Lighter vault. Crypto prices might have recovered after the deleveraging on October 10, but not the Kanye West YZY vault on Lighter. The hangover remains.<\/span><\/p>\n

Unlike Binance, Bybit, and other big boys like Coinbase One, perpetual DEXes lean more on the community to stay competitive. Yes, they allow 10x leverage, and all trades are public, but without a pool of funds deposited by the community, it can get pretty hard to match <\/span>CEX offerings<\/span><\/a>.<\/span><\/p>\n

For this reason, Lighter, Hyperliquid, and all other perpetual DEXes offering leverage trading have created vaults. Anyone can deposit funds into the pool and earn a percentage as revenue, depending on how actively traded the pool\u2019s pair is. The more leveraged positions opened, the more revenue the vault receives. As of October 14, the Lighter Liquidity Provider (LLP) cumulatively manages over $388M, of which the Ethereum vault is the largest with over $11M in position value.<\/span><\/p>\n

\"The<\/p>\n

(Source: <\/span>Lighter<\/span><\/a>)<\/span><\/p>\n

DISCOVER: <\/span>Best Meme Coin ICOs to Invest in 2025<\/span><\/a><\/strong><\/p>\n

How Perpetual DEX Vaults Work: Who\u2019s More Aggressive?<\/span><\/h2>\n

The Lighter Liquidity vault will continue to provide liquidity, always posting bids and asks on the order book while ensuring tight spreads and <\/span>deep markets<\/span><\/a>. <\/span><\/p>\n

At the same time, the same pool will handle all liquidations since whenever a trader is deep in red, the vault will step in, acting as a counterparty and shielding the exchange from bankruptcy. <\/span><\/p>\n

In extreme cases, like on Friday, a vault, as seen in Hyperliquid, can manage risk by auto-deleveraging, forcibly closing profitable trades to cover losses. <\/span><\/p>\n

However, for Lighter, there were no reports of auto-deleveraging. As the liquidator of last resort, the vault stepped in, taking the other side of the trade to prevent further losses for the trader and the vault. <\/span><\/p>\n