Ventuals experiences HYPE withdrawal run, official promises 85% redemption guarantee

BlockBeats News, March 16 — The trading platform Ventuals, based on HIP-3, experienced a HYPE withdrawal run. The liquid staking token vHYPE issued by Ventuals briefly dropped to $9, but has since rebounded to $31. The current price of HYPE is $37.5, and vHYPE still trades at about an 18% discount.

Hyperliquid HIP-3 allows anyone to deploy their own perpetual contract sub-DEX, but requires staking at least 500,000 HYPE. Ventuals absorbs users' HYPE and issues liquid staking tokens vHYPE, but its treasury is now close to the minimum staking threshold of 500,000 HYPE, causing users to panic and redeem their tokens.

Ventuals CEO Alvin Hsia stated that this is not a bug, but rather a rule by design. Withdrawals will be paused once the treasury approaches the threshold to avoid disrupting traders in the Ventuals market. Ventuals is working with private LPs to increase HYPE holdings. Ventuals and its partners will offer redemption through major secondary liquidity pools at a vHYPE to HYPE ratio of 0.85:1 as the final discount bottom line. If users need instant liquidity, they are guaranteed to exit at a maximum 15% discount.