The competition for supremacy among decentralized derivatives exchanges has shifted significantly following data aggregator DefiLlama’s decision to delist Aster, citing data integrity issues.
Aster, a derivatives decentralized exchange (DEX) supported by YZi Labs (previously Binance Labs), recently witnessed a surge in trading volume, allowing it to surpass Hyperliquid, a standout in the crypto sector.
However, on Sunday, DefiLlama’s founder 0xngmi announced on X that Aster’s listed volumes resembled those from Binance’s perpetuals market, leading to its removal.
This delisting has triggered a broader discussion regarding the influence of data providers. Aster’s supporters accused DefiLlama of centralization, while detractors questioned the authenticity of Aster’s rapid growth.
Aster’s growth reignites discussion on inflated volumes
Aster topped all DEXs in trading volume on Monday with $41.78 billion over 24 hours, according to Binance-owned data aggregator CoinMarketCap, while Hyperliquid saw over $9 billion.
Aster did not respond to Cointelegraph’s request for comment regarding this matter.
“Wash trading and inflated usage volumes are estimated to impact [a quarter] of exchanges today,” Greg Magadini, director of derivatives at Amberdata, told Cointelegraph.
Magadini mentioned that volume inflation typically falls into two categories: traders who artificially enhance their activity to earn rewards or qualify for airdrops, and exchanges that exaggerate user engagement to attract authentic volume.
On Tuesday, X user Dethective identified the top five wallets generating $85 billion in trading volume on Aster over the last 30 days in expectation of the airdrop. However, not all top wallets appeared suspicious. In a post on Sept. 30, Dethective analyzed Aster’s top 10 traders and indicated that some seemed to engage in genuine trading activities, but at least two were suspected of Sybil behavior, likely aimed at farming airdrop points.
Trading volume can be inflated using high-frequency bots that quickly open and close positions. In contrast, open interest reflects positions that require traders to lock up collateral and incur funding costs over time.
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Among perpetual DEXs, Hyperliquid led with $14.68 billion in open interest on Monday, followed by Aster at $4.86 billion and Lighter at $2.08 billion, as per CoinMarketCap’s data.
Aster advocates ironically endorse Dune
DefiLlama is among the most utilized data platforms in decentralized finance (DeFi), monitoring protocols across significant chains and ecosystems. Its choice to delist Aster has consequently created a void for users seeking reliable data on the emerging perpetuals exchange.
Some users criticized DefiLlama’s action as “centralized,” advocating instead for Dune Analytics as a preferred option. Dune allows users to create and publish custom dashboards. Ironically, several Dune dashboards referred to by DefiLlama critics actually utilize DefiLlama’s data.
DefiLlama’s 0xngmi responded to the backlash on X, refuting claims that the organization was compensated to delist Aster or that it was unfairly targeting the exchange.
“We are not,” 0xngmi stated. “We have previously delisted Lighter and many other perp DEXs due to evident wash trading.”
Wash trading has been a persistent challenge for crypto data providers. During the NFT market’s surge, players on the marketplace Blur were accused of inflating trading metrics to qualify for anticipated airdrops, allowing the platform to briefly surpass OpenSea in volume.
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In traditional finance, wash trading is prohibited under capital markets and securities regulations. However, in the still-evolving crypto landscape, oversight is minimal, leaving detection primarily to analytics firms. These entities typically identify suspicious patterns through “round-trip” trade analyses.
“A sign of wash trading is when a considerable percentage of an exchange’s volume comprises identical buy and sell trades occurring in rapid succession,” explained Magadini. “If this pattern is observed across multiple pairs, it strongly indicates artificially inflated volume.”
Aster saga underscores difficulties in measuring DeFi
The delisting of Aster reflects the ongoing struggles to ascertain truth in decentralized markets. Such disputes illustrate how swiftly inquiries about numbers can evolve into issues of trust.
Aster’s rise and the scrutiny that ensued highlight the competitive nature of DeFi platforms vying for dominance in perpetual trading volume, which comprises about 80% of the crypto market.
Trading volume can be a deceptive metric, particularly when airdrop incentives and automated strategies distort genuine activity. Open interest, funding fees, and collateral information provide more accurate indicators of real engagement but often get overlooked in the quest for visibility.
Whether Aster’s swift ascent is authentic or exaggerated, DefiLlama’s critique of its metrics illustrates the fragile nature of trust in crypto data. Trading volume continues to influence perception, even when its reliability is doubtful.
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