I think there is a fundamental negative depiction of ADL across CT that needs to be reformed. In DeFi perps trading, there is an ever-present risk of Basis, which is the difference between the current spot price in the market and the future price that a liquidation engine will be able to sell at. There is an inherent necessity to utilize ADL because of the lack of recourse in DeFi markets, as we do not know our counterparties, which is a circumstance that is not present in TradFi. For instance, if you are levered long on stocks and get liquidated, your margin call will come in to settle the delta of your balance, even post-liquidation - ensuring that traders on the other side of the book are able to be made whole in the event that your collateral is not sufficient. If you do not fulfill that obligation, you will get sued. ADL comes in to minimize basis risk, and without it, the likelihood that an exchange, either centralized or decentralized, becomes insolvent increases exponentially. What are the other options besides ADL: insurance funds and socialized losses; however, insurance funds are limited in size, and socialized losses are not meritocratic and often employed as a last line of defense. Lastly, for everyone saying that it's unfair that @ethena was able to negotiate a 1:1 oracle price or bypass standard ADL policies, you're lacking market intelligence. They have been and remain fully overcollateralized, and thus, thin orderbook price differentials should not be relevant to maintaining the efficacy of true price, given that the basis can be removed via instant redemption. Thank you for coming to my TED talk, I will not resume sh*t posting via quoting.

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