Lighter reported that its upgraded liquidity pool system successfully limited ADL losses to a pre-determined threshold.

On February 26, Lighter, a decentralized crypto exchange, announced that its upgraded liquidity pool system successfully resisted a $50 million ARC perpetual long squeeze attempt.

This occurred after approximately 600 traders reversed a whale’s position, resulting in an $8.2 million loss, and the episode tested Lighter’s newly launched LLP Strategies, capping the downside risk for liquidity providers at just $75,000.

LLP Strategies Face First Stress Event

In a February 17 post on X, Lighter announced changes to its LLP infrastructure, splitting…