DeFiBearishWu Blockchain · 1d ago6/10
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Perpetual Futures' Liquidation Algorithm: The Prime Mover of the Altcoin Bull Market - a zero-sum, cross-subsidy game where losers fund winners
The article examines how perpetual futures liquidation algorithms function as a zero-sum wealth transfer mechanism in altcoin markets, where leveraged traders' liquidations directly fund gains for winners. This structural dynamic reveals that altcoin bull markets are partially driven by cascading liquidations that redistribute capital from over-leveraged positions to those holding profitable trades.
