Author: CM, Source: Twitter @cmdefi

Why @HyperliquidX is more successful than other Perps is the most discussed topic today, speaking from personal experience $HYPE.

The method here is actually Vault. This mechanism is available on GMX and Jupiter, but Hyperliquid’s Vault is an evolved version, including Protocol Vaults (HLP) and User Vaults. Open the door to diversity.

At the same time, the emergence of diversified Vault has also solved the problem of long-tail asset liquidity. The trading of long-tail assets is Perps dex’s core competitiveness against CEX, and it is also a solution that many competitors have been exploring. problem.

Then there is the composability as a chain, which directly skips the transition from Protocol to Chain and goes straight to the finals, opening up space in terms of valuation and imagination.

Let’s talk about a few bonus points here, which are actually worth learning from many projects

(1) Don’t raise funds, don’t pursue big firms, and don’t deliberately spend money. Spending money on advertising and taking the bottom-up route will make it easier to gain favor in this round of the market.

(2) Airdrops are very willing.

(3) It is not PUA. Although there were some disputes about the dilution of scores in the early stages, it is generally clean and tidy. There is no endless loop like doing tasks over and over again and getting NFT after completing the tasks.

(4) The positioning is based on the "chain", providing imagination space and valuation space. Hyperliquid is actually a chain, so various defi and Perps combinations can be built on it, such as stable coins, Lending, etc., so a phenomenon emerged. At first, people compared the valuation of some Perps dex with $HYPE. Gradually, they felt something was wrong, and began to compare with public chains. This alternative sense of gap in upward breakthroughs once again drove market sentiment.

(5) Positioning "Binance on the chain" is very topical, because DeFi protocols such as dex, lending, and stablecoins have basically gained a place in the market, and only the Perps track is still struggling. , which also meets the expectations of the last piece of the DeFi puzzle.

The market is uncontrollable. It is difficult to copy the right time, place and people. The technical mechanism is certain. From now on, there will be no major technological innovation in the future. Vault is to Perps, equivalent to AMM As for Dex, dYdX has also recently introduced Vault. In the future, more micro-innovations may involve various forms of Vault. The success of this mechanism has established the status of Perps, which may no longer be what it seemed before. It is a vase that has potential but cannot be developed.