Gauntlet CEO Tarun Chitra on Why Exchange ADL Mechanisms Need an Update

Gauntlet CEO Tarun Chitra on Why Exchange ADL Mechanisms Need an Update

From The Big Brain Podcast by The Block

December 16, 2025 · 1h 3m · Episode 10

About this episode

Tarun Chitra discusses the need for updates in exchange ADL mechanisms and the implications for user onboarding.

In episode 10 of The Big Brain Podcast, Larry and Namik are joined by Gauntlet founder and CEO Tarun Chitra. Tarun recounts how an unexpected ADL event on a tiny test position pushed him to research how exchanges handle insolvency when liquidations fail, especially after October 10th. He argues the common ranking approach concentrates losses unfairly and may overshoot during cascading events. The discussion also covers transparency, insurance funds, and why improving these systems matters if perp exchanges want to onboard new users. OUTLINE 00:00:00 - Introduction 00:00:54 - Tarun’s background 00:10:50 - Tarun's ADL paper 00:15:40 - ADL usage 00:26:25 - Transparency gap 00:31:44 - Critiques of Tarun's paper 00:36:32 - Impact of Tarun's paper 00:41:09 - Potential fixes 00:45:31 - Cult-like communities in crypto 00:52:42 - 10x verticals looking ahead 01:02:29 - Conclusion Guest links: Tarun Chitra - x.com/tarunchitra Gauntlet - x.com/gauntlet_xyz Show links: - Apple: apple.co/43F3vmq - Spotify: spoti.fi/44NT1lZ - Larry: x.com/lawmaster - Namik: x.com/NamikMuduroglu - The Block Podcasts: x.com/TheBlockPods…

People in this episode

Hosts: Larry, Namik

Guest: Tarun Chitra

Topics covered

  • exchange mechanisms
  • liquidation
  • transparency
  • crypto communities
  • insolvency

Keywords

  • ADL
  • liquidation
  • transparency
  • crypto
  • exchanges
  • insolvency
  • Gauntlet

Mentioned in this episode

Organizations: Gauntlet, The Block

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