TL;DR

Macroeconomic uncertainty drove a risk-off sentiment in crypto this week, causing trading volume on Typus to cool by nearly 20% to ~$6.8 million. In a major highlight, TLP fees exploded by a record +296% as long positions were closed, capturing significant funding fees. This allowed the TLP token ( -4.59%) to massively outperform its falling asset basket ( -6.09%) in a defensive masterclass. Traders faced a difficult week, booking -$95.6K in losses as the market deleveraged once again.

Macro Uncertainty Drives Risk-Off Sentiment in Crypto

The prevailing market narrative this week centered on caution, driven by ongoing trade policy friction and political uncertainty. While traditional risk assets like equities held firm, the consensus view suggests crypto acted as a “release valve” for risk. This led to a broad sell-off, with BTC showing particular weakness and experiencing significant long liquidations across the market.

This cautious backdrop was reflected on the Typus platform. Trading activity cooled down, with total volume decreasing by 19.64% to ~$6.8 million. Average Daily Active Users (DAU) also saw a corresponding decline of 10.78% as traders adopted a “wait-and-see” approach in the uncertain environment.

LPs Showcase Strong Defense as Fees Explode Nearly 300%

This week was an incredibly illustrative one for TLP’s mechanics. The two key stories for LPs were a powerful defensive performance and record-breaking fee generation.

First, in a market where the TLP’s underlying asset basket fell by a steep -6.09%, the TLP token itself declined by only -4.59%. This +1.5% of “alpha” was generated by the TLP capturing the substantial losses from traders.

Second, and most remarkably, TLP fees surged by an incredible +296.16% to a record ~$37.8K, despite the nearly 20% drop in trading volume. As noted in the report’s observations, this was primarily due to the closure of long positions, which allowed the TLP to realize significant income from previously accrued funding fees.

TLP vs. SUI: A 30-Day Performance Deep Dive

The 30-day performance data highlights the TLP’s ability to provide downside protection in a falling market. Over a challenging month, the TLP Stake strategy limited losses to just

-1.43%, while a strategy of simply holding SUI spot would have resulted in a much larger -6.34% loss. The Sharpe Ratios, which measure risk-adjusted return, confirm this defensive strength, with the TLP strategies proving superior to holding SUI directly during this period.

Traders Hit Hard by Market-Wide Deleveraging

It was a very difficult week for traders, consistent with the broader market’s wave of long liquidations. Traders on Typus booked a heavy realized loss of

-$95.6K. This represents a significant downturn after several weeks of mixed-to-positive results and reflects the challenges of navigating a market driven by unpredictable macro headlines.

Market Deleveraging Continues as Sentiment Resets

The market underwent another significant deleveraging event this week. Total Open Interest declined from the prior week’s ~$1.7M to ~$1.1M. This flush, combined with the heavy trader losses, effectively reset the overly bullish sentiment from previous weeks. The long/short ratios across major assets like SUI, SOL, and ETH have now normalized, indicating that the market has returned to a more neutral and balanced state.

The key takeaway this week is the TLP’s resilience in the face of negative macro sentiment. The week was a powerful showcase of how the TLP’s mechanics — particularly the capture of funding fees and trader PnL — can provide significant downside protection for LPs, even when both asset prices and trading volumes are falling.