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A $19-Billion Liquidation Night: Why Did Lighter Go Dark?
Uniswap's Major Buyback Proposal: Can UNI Trigger a Value Reassessment?
Uniswap’s latest governance proposal aims to transition the UNI token into a deflationary model by activating protocol fees and implementing a buyback-and-burn mechanism. These changes could profoundly impact UNI’s long-term value. Core Proposal HighlightsEnable protocol fees and use them to repurchase and burn UNI tokens, transforming UNI from a governance token into a productive asset backed by cash flow.Conduct a one-time burn of 100 million UNI tokens (16% of total supply), immediately bo...
Is Polymarket Considered Gambling? Legal Risks for Chinese Users
Polymarket is a blockchain-based prediction market platform that allows users to predict future events and profit by buying and selling related contract shares. This article analyzes the risks for Chinese users from a legal perspective: * How Polymarket Works: Users use stablecoins to bet on outcomes of future events like politics or sports, trading shares that represent the probability of a particular outcome. Settlements are executed via smart contracts once the event outcome is determined....
Can Stablecoins Break Visa and Mastercard's Duopoly?
Stablecoins have emerged as a potential challenger to the $1 trillion duopoly of Visa and Mastercard. These stablecoins offer the promise of significantly lower transaction fees, which could disrupt the current market dynamics dominated by Visa and Mastercard. However, the path to widespread adoption is fraught with regulatory and banking industry pressures.The Current LandscapeVisa and Mastercard currently charge merchants transaction fees of up to 2-3%, which is often the second-largest exp...
Event Snapshot
On 11 October 2025 the crypto market suffered the largest forced-liquidation in history: roughly 19 billion USD in total margin calls.
Decentralised perpetual futures venue Lighter froze for hours, leaving users unable to close or hedge positions.
Its liquidity-provider pool (LLP) lost 5.35 %, reigniting industry doubts about whether Perp-DEX architectures can survive violent moves.
Tech Blueprint – How Lighter Was Built
Lighter runs on zkLight, a bespoke ZK-Rollup Layer-2.
Four moving parts keep the engine turning:
Sequencer – first port of call, orders transactions into batches.
Matching engine – consumes the batch, executes “price-time” priority, outputs trade data ready for proving.
Prover – compresses the match into a zk-SNARK certificate.
L1 verifier contract – checks the proof, updates the state root; finality is now on Ethereum.
Liquidity lives in the LLP vault: it quotes, earns fees, takes the other side of flow and absorbs part of liquidation losses – a one-pool-does-all design that looks elegant until the sky falls.
Why the Lights Went Out
Between 00:17 and 05:08 Beijing time Lighter lost three consecutive batches, then staggered on with a 4-hour limp.
Load spike: minute-throughput leapt from 4 k to 656 k trades (79.8 × normal) when Batch #55743 landed.
Centralised choke: one sequencer, one Postgres index – both buckled under the surge, corrupting indices and locking rows.
Proof-queue gridlock: no priority lane for liquidations; margin-call proofs queued behind ordinary trades. By the time the SNARK was ready, positions were already deep underwater.
Ops mis-step: the team had pencilled a DB-scaling upgrade for the same weekend. “Wrong maintenance window” is CEO Vladimir Novakovski’s own verdict.
What the Chain Tells Us
Beosin scraped every batch timestamp:
In normal hours a batch caps ~800 k trades (1 600 blocks × 500 tx).
Record batch #55743 squeezed in 639 k trades in 2 min – technically feasible, but pushed every sub-system into the red.
Thousands of failed submissions never even reached the rollup; users watched positions evaporate while the “Submit Order” button spun.
The Take-away for Perp-DEX Builders
Red-team your contract logic – liquidation math, funding-rate snaps, oracle fallback.
Stress-test the full stack, not just the EVM bit: sequencer, prover, mempool, RPC.
Give liquidations a reserved lane – CPU, memory, proof-budget – or they will lose the race to a JPEG mint.
Sequence decentralisation is no longer a nice-to-have; run at least a hot-standby or rotating leader.
Schedule upgrades when the Greeks are asleep, not when gamma is about to explode.
Closing Note
Lighter’s blackout is a textbook example of performance risk masquerading as smart-contract risk.
Beosin has already audited Surf Protocol, Tifo.trade and other Perp-DEXes, patching medium-to-critical bugs in leverage formulas, oracle pricing and LLP rebalancing.
Before the next billion-dollar candle arrives, audit the code – and the capacity.
Event Snapshot
On 11 October 2025 the crypto market suffered the largest forced-liquidation in history: roughly 19 billion USD in total margin calls.
Decentralised perpetual futures venue Lighter froze for hours, leaving users unable to close or hedge positions.
Its liquidity-provider pool (LLP) lost 5.35 %, reigniting industry doubts about whether Perp-DEX architectures can survive violent moves.
Tech Blueprint – How Lighter Was Built
Lighter runs on zkLight, a bespoke ZK-Rollup Layer-2.
Four moving parts keep the engine turning:
Sequencer – first port of call, orders transactions into batches.
Matching engine – consumes the batch, executes “price-time” priority, outputs trade data ready for proving.
Prover – compresses the match into a zk-SNARK certificate.
L1 verifier contract – checks the proof, updates the state root; finality is now on Ethereum.
Liquidity lives in the LLP vault: it quotes, earns fees, takes the other side of flow and absorbs part of liquidation losses – a one-pool-does-all design that looks elegant until the sky falls.
Why the Lights Went Out
Between 00:17 and 05:08 Beijing time Lighter lost three consecutive batches, then staggered on with a 4-hour limp.
Load spike: minute-throughput leapt from 4 k to 656 k trades (79.8 × normal) when Batch #55743 landed.
Centralised choke: one sequencer, one Postgres index – both buckled under the surge, corrupting indices and locking rows.
Proof-queue gridlock: no priority lane for liquidations; margin-call proofs queued behind ordinary trades. By the time the SNARK was ready, positions were already deep underwater.
Ops mis-step: the team had pencilled a DB-scaling upgrade for the same weekend. “Wrong maintenance window” is CEO Vladimir Novakovski’s own verdict.
What the Chain Tells Us
Beosin scraped every batch timestamp:
In normal hours a batch caps ~800 k trades (1 600 blocks × 500 tx).
Record batch #55743 squeezed in 639 k trades in 2 min – technically feasible, but pushed every sub-system into the red.
Thousands of failed submissions never even reached the rollup; users watched positions evaporate while the “Submit Order” button spun.
The Take-away for Perp-DEX Builders
Red-team your contract logic – liquidation math, funding-rate snaps, oracle fallback.
Stress-test the full stack, not just the EVM bit: sequencer, prover, mempool, RPC.
Give liquidations a reserved lane – CPU, memory, proof-budget – or they will lose the race to a JPEG mint.
Sequence decentralisation is no longer a nice-to-have; run at least a hot-standby or rotating leader.
Schedule upgrades when the Greeks are asleep, not when gamma is about to explode.
Closing Note
Lighter’s blackout is a textbook example of performance risk masquerading as smart-contract risk.
Beosin has already audited Surf Protocol, Tifo.trade and other Perp-DEXes, patching medium-to-critical bugs in leverage formulas, oracle pricing and LLP rebalancing.
Before the next billion-dollar candle arrives, audit the code – and the capacity.
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