Aster DEX Under Fire: DefiLlama Delisting and Wash-Trading Debate

What is Aster DEX and Why It Matters

Aster is a decentralized perpetual exchange that lets traders use yield-bearing assets as collateral for trading. The platform offers both spot and perpetuals trading on multiple blockchains. Users can trade crypto and traditional stock perpetuals 24/7 without giving up custody of their assets.

The platform solves a major problem in DeFi. Most exchanges force traders to choose between earning yield or actively trading. Aster changes this. Traders can now earn passive income on their collateral while they trade. This means your margin generates returns even when you're holding positions.

Aster operates across BNB Chain, Ethereum, Solana, and Arbitrum. The multi-chain approach gives traders access to deeper liquidity pools. It also reduces the fragmentation that plagues many DeFi protocols.

The Merger That Created Aster

Aster emerged from a strategic merger in late 2024. Two established protocols joined forces to create something bigger. Astherus brought its multi-asset liquidity and yield protocol expertise. APX Finance contributed its decentralized perpetuals technology.

The rebrand to Aster happened in April 2025. Both teams recognized they could build a stronger product together. The merger combined complementary strengths rather than competing technologies. This unified approach helped Aster avoid the development delays that often plague crypto mergers.

The timing proved strategic. The DeFi perpetuals market was growing rapidly. Established players like dYdX and Hyperliquid had proven the model worked. But gaps remained in capital efficiency and user experience. Aster positioned itself to fill these gaps.

The Mystery Behind Aster's CEO Leonard

Leonard worked as a product manager at a major exchange starting in 2019, back when the team had just a few hundred employees. The exchange later grew into one of crypto's biggest companies. Leonard saw capital flowing into centralized exchange startups and watched Hyperliquid break fresh ground in the decentralized exchange space. This experience shaped his vision for Aster.

Leonard keeps his real identity completely hidden. His X profile sports a profile picture of a hooded figure with no real details provided. He created his social media accounts in March 2025, just weeks before announcing the Aster rebrand in April. 

This anonymous approach creates unique challenges. In transparent projects where the founder is known, there is a sense of accountability because people know who to question if the protocol is flawed. In anonymous projects, participants are forced to rely on code audits and community oversight. Leonard addresses this gap through regular community engagement. He emphasizes Peckshield audits and maintains open communication channels through AMAs.

Leonard shows unusual honesty about Aster's weaknesses. He admits Aster is still behind on things like mobile usability and trading depth, saying "We are also lacking behind on the mobile experience, which is a general issue in Web3". This transparency stands out in an industry where projects often overpromise.

Image source: @Aster_DEX

Key Features That Set Aster Apart

Aster's Trade & Earn model represents its core innovation. The platform accepts two types of yield-bearing collateral:

• asBNB: A liquid staking derivative of BNB that earns staking rewards
• USDF: A yield-bearing stablecoin pegged 1:1 with USDT

USDF deserves special attention. The stablecoin deploys collateral through delta-neutral strategies on the CEX. This generates consistent yields for holders. But it also creates a dependency on Binance's continuous operation.

Trading Modes for Different Users

Aster offers two distinct trading interfaces. Each targets different user needs and experience levels.

The 1001x Mode simplifies trading to its basics. Users get one-click trading with leverage up to 1001x. The interface resists MEV attacks through smart order routing. New traders find this mode less intimidating than traditional order books.

The Perpetual Mode caters to professional traders. It provides a full order book interface with advanced charting tools. Traders can use multiple assets as margin in this mode. The depth chart and technical indicators match what professionals expect from centralized exchanges.

Hidden Orders Privacy Feature

Hidden Orders represent Aster's most talked-about feature. Large orders stay invisible until execution happens. This prevents front-running and MEV extraction on big trades. The mechanism caught the attention of CZ, who publicly endorsed it as a breakthrough in trading privacy.

The feature works by encrypting order details until matching occurs. Only the smart contract can decrypt and execute the trades. This gives institutional traders the privacy they need for large positions.

YZi Labs and the CZ Connection

YZi Labs played a crucial role in Aster's rise. The $10 billion investment firm, founded by CZ (Changpeng Zhao) and Yi He, was the sole investor in Aster's seed round. This happened when the project was still called Astherus in late 2024.

The investment went beyond just capital. YZi Labs provided technical incubation and marketing resources. Aster gained access to Binance's massive user base through this partnership. The firm also helped with cross-chain infrastructure development.

YZi Labs focuses on three main narratives in crypto: DEXs, real-world assets, and AI-powered DeFi. Aster fits perfectly into their DEX thesis. The firm believes decentralized exchanges will eventually match centralized exchange volumes.

CZ's public endorsement created what traders call the "CZ Effect." The token price surged 400% within hours of his tweet. Trading volume spiked to over $324 million. While CZ later clarified the exchange has no official role, he acknowledged several former Binance employees work at Aster.

Aster vs Hyperliquid, dYdX, and GMX

The perpetual DEX market has clear leaders. Here's how Aster compares to the competition:

Aster's competitive advantages center on capital efficiency. The yield-bearing collateral model is unique among major DEXs. Stock perpetuals open a bridge between TradFi and DeFi. The multi-chain approach provides flexibility that single-chain competitors lack.

But established players have advantages too. Hyperliquid leads in open interest with $14.68 billion compared to Aster's $4.86 billion. dYdX has years of operational history and battle-tested infrastructure. GMX pioneered the liquidity provider model that many DEXs now copy.

The DefiLlama Delisting Controversy

October 5, 2025 marked a turning point for Aster. DefiLlama removed Aster's perpetual volume data from its platform. The decision exposed uncomfortable questions about data integrity in DeFi.

DefiLlama founder 0xngmi cited clear evidence of wash trading. Aster's reported volumes matched Binance perpetuals almost exactly. The correlation ratio approached 1, which rarely happens in legitimate trading. Aster also refused to provide order-level data for verification.

Before delisting, Aster claimed $41.78 billion in 24-hour volume on October 7. This was four times Hyperliquid's $9 billion. The numbers seemed impossible for a newer exchange with lower open interest.

The Wash Trading Problem

Wash trading isn't new in crypto. Studies suggest it affects about 25% of all exchanges. Traders use bots to open and close positions instantly. The activity generates volume without real economic activity.

Aster's airdrop allocation made the problem worse. The protocol reserved 53% of tokens for airdrops. Top wallets generated $85 billion in volume over 30 days. Most engaged in Sybil attacks to farm airdrop points.

The controversy sparked heated debate. Aster supporters accused DefiLlama of centralization. Critics pointed to Dune Analytics as an alternative. But many Dune dashboards actually relied on DefiLlama's data feeds.

Measuring Real Activity

Smart analysts look beyond trading volume. Open interest provides a clearer picture of actual usage. It shows how much collateral sits locked in positions over time. This metric is much harder to fake than volume.

On October 3, 2025, the numbers told a different story:

• Aster Open Interest: $4.86 billion
• Hyperliquid Open Interest: $14.68 billion
• Aster Volume: $41.78 billion
• Hyperliquid Volume: $9 billion

The mismatch between open interest and volume raised red flags. Real exchanges typically show proportional relationships between these metrics.

ASTER Price Performance and Price Action

The ASTER token launched on September 17, 2025. The price action since then has been extraordinary. Within six hours of launch, the token surged 1,500%. Early buyers saw life-changing gains almost instantly.

Several catalysts drove the price higher. CZ's endorsement triggered a 400% spike alone. MrBeast's reported $114,000 purchase pushed prices to new highs. The token reached $2.30 at its peak before pulling back to $1.83 by October 5.

Trading volume tells its own story. The token regularly sees $300+ million in daily volume. This liquidity allows large players to enter and exit positions. But it also enables potential manipulation by concentrated holders.

Market analysts remain bullish despite recent turbulence. Some predict the price could reach $10, representing a 480% gain from current levels. These forecasts assume continued adoption and favorable market conditions.

Token Distribution and Ownership Risks

Aster has a fixed supply of 8 billion ASTER tokens. The distribution raises serious concerns about centralization:

The airdrop allocation seems generous at first glance. But on-chain data reveals a different reality. About 93% of ASTER supply sits in just a few wallets. Some analysis suggests six wallets control over 96% of tokens.

This concentration creates massive governance risks. A small group can manipulate prices at will. They control protocol decisions through voting power. The promise of decentralization becomes meaningless with such concentration.

The team allocation seems reasonable at 5%. But the anonymous CEO "Leonard" adds uncertainty. Nobody knows his track record or previous projects. Trust relies entirely on code audits and community oversight.

Operational Dependencies

Aster faces structural risks beyond token concentration. The USDF stablecoin mechanism depends on third-party vendors for essential services such as software, custody, and technical infrastructure. Any failure, instability, or breach by a key provider represents a major operational risk.

The 1001x leverage feature creates systemic risks. Traders face near-certain liquidation at these levels. Small price movements can trigger cascading liquidations. The platform could face liquidity crises during volatile periods.

Multi-chain operations add technical complexity. Bridge hacks remain common in crypto. Each additional chain increases attack surfaces. The platform must maintain security across all supported networks.

What's Next for Aster

Aster's roadmap includes ambitious plans. The team plans to launch Aster Chain, a purpose-built Layer 1 blockchain. This would give them full control over transaction ordering and MEV prevention. 

Zero-knowledge proof integration represents another major upgrade. ZKP technology would enable fully private trading. Users could trade without revealing positions or identities. This appeals to institutional traders concerned about information leakage. The intent-based system promises to automate cross-chain execution. Traders could set complex conditions for trades. The system would execute across chains automatically. This reduces the complexity of multi-chain trading.

But challenges remain significant. The DefiLlama delisting damaged Aster's reputation. Trust takes time to rebuild in crypto. The platform must prove its volumes are legitimate.

Competition keeps intensifying. Hyperliquid continues dominating open interest metrics. New entrants launch monthly with innovative features. Aster must execute flawlessly to maintain its position. Regulatory clarity could help or hurt. Positive developments might legitimize the entire sector. But crackdowns on DeFi or Binance would hit Aster particularly hard. The platform's success remains tied to broader industry trends.

The next few months will prove critical. Aster must demonstrate real user growth beyond airdrop farmers. Open interest needs to grow proportionally with claimed volumes. The platform must also address token concentration concerns. Only then can Aster fulfill its promise of becoming the leading decentralized perpetual exchange.