Aster DEX launches ‘Machi mode’ to reward traders for liquidations

Aster, one of the up-and-rising perpetual futures DEXs, has embraced liquidations, offering points for risky trades. The DEX introduced ‘Machi mode’, where traders would be rewarded for their liquidations. 

‘Machi mode’ is coming to Aster DEX, based on the experience of Machi Big Brother. The crypto influencer was known for large-scale public liquidations on Hyperliquid, but has also tested other exchanges. 

Aster also announced it would honor older liquidations, rewarding trader James Wynn for losing his position a total of 26 times. The liquidation rewards will be backdated, taking into account previous events, including the October 11 crash. 

Leonard, the pseudonymous CEO of Aster, said that the points program is not so much encouraging liquidations as it is a compensation to traders for past losses. 

‘It’s just a nod to someone who trades hard and shows up every day and a way to answer our users who asked for something to ease the sting of all those October liquidations. No shade, just some pain relief,’ posted Leonard on X.

The reactions to the DEX program were mixed, with some saying that rewarding liquidations may lead to bad trading practices.

Perpetual DEX like Aster remains risky

Perpetual futures DEX with high leverage are extremely risky, and some influencers have opened positions with a big notional value, based on a relatively small collateral. Machi Big Brother and other prominent whales have been accused of hedging their positions and getting liquidated for exposure. 

The points for liquidations may become a form of farming on Aster, where traders will essentially bet on an upcoming airdrop or another type of reward. With this mode, Aster will also boost its liquidity and encourage more risky trades. 

Aster aims to increase its share of perp DEX trading

While Hyperliquid remains the legacy leader in perp DEX trading, Aster has grown its influence. Trading is becoming more consistent in November, with volumes taking up to 31% of perp DEX activity. 

Aster DEX has shown more consistent volumes in November, taking up to 31% market share. | Source: Dune Analytics

After a spike at the end of September, Aster’s daily fees fell to a baseline of $1.7M to $2.2M daily, with consistent levels of activity. During its initial rally, Aster also raised speculation of carrying non-organic volumes and having non-transparent trading. 

Unlike Hyperliquid, Aster has allowed hidden orders, potentially allowing whales to trade without exposure. The recent points for the liquidations program were among the first to showcase the liquidations of Machi Big Brother and James Wynn. 

Hyperliquid remained the leader with $3M to $5M in daily fees, again without dramatic spikes. Both markets remained subdued following the October 11 liquidations. Aster mindshare has also fallen by over 58% as the initial hype and token activity slowed down. 

ASTER tokens still traded around $1.33, remaining within its usual range despite the series of market downturns.

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