ADL is the Silent Perp Killer – Should DEXs MANDATE Public Queue Rankings?

TL;DR:
ADL can nuke your winner after you’re up 5x. Most DEXs hide your spot in line. Should Hyperliquid, Aster and other DEXs show ADL like CEX do?

As someone who was affected by the Oct 10 liquidations, it got me digging into DEX mechanics and ADL.
Perp trading isn’t you vs the market.
It’s you vs the liquidation engine, core mechanics most miss:
- Perps = synthetic contracts. Zero sum. No BTC ownership. Every $1 profit = $1 loss elsewhere.
- Funding rates keep perps pegged to spot. Longs pay shorts (or vice versa) to balance OI.
- Heavy perp buying → funding spikes → arb bots buy spot → BTC price indirectly lifts. No arb? Drift city.

When liquidations gap past bankruptcy price → insolvency.
Who eats it?
CEXs (Binance): Insurance fund and only then deleveraging.

DEXs: LP vaults (GMX, Hyperliquid, Drift) → pool bleeds; Order-book (dYdX) → insurance → ADL.

ADL is the last resort.
Formula: (PnL / Notional) × (Notional / Equity)
Translation: Most profitable + most leveraged = first to get force-closed.
You keep PnL. You lose exposure. Market moons? You watch from the sidelines.
Oct 10 cascade:vBillions wiped. Cought in sharpnel were Delta-neutral farmers who were running long/short pairs for points. Their short leg most likely got ADL’d, producing losses on the long. I talk more about it in this vid: https://youtu.be/aEGfypBQ8Pc Hedge was gone. “Smart” money became dumb.

Transparency scoreboard:

The questions are:

Should DEXs be required to publish live ADL rankings like funding rates & OI?
Or is secrecy part of the “game theory” edge?
Only users can dictate that, and I doubt enough ppl care.

Yes camp:
Prevents blind bombs; Builds trust; Stops “smart” farmers from getting rekt by hidden mechanics.; Transparency = maturity benchmark.

No camp:
Queue-jumping becomes meta; Sharp traders exploit opacity; Forces better risk models.