Hyperliquid has established itself as a leading platform for on-chain perpetual contracts through a model of full transparency that exposes trader identities, profit and loss, and liquidation levels. This radical transparency allows market makers to identify non-toxic flows and scale liquidity. However, Variational's new derivatives protocol, Omni, is pursuing a contrasting approach centered on total privacy. Co-founder Edward Yu argues that for alpha traders, visibility can lead to front-running and the loss of competitive advantage. Omni offers a peer-to-protocol trading venue with no public order book, aiming to protect traders' intentions. Funded strategically, Omni's model involves users engaging directly with an integrated market maker through private settlements. The protocol also aims to redistribute revenue back to users rather than selling order flow. Additionally, it mitigates custodial risks by maintaining control over deployed liquidity. Despite Hyperliquid's current dominance, Omni is carving a niche for retail traders seeking discretion and profitability.

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