As DeFi investors prepare for the launch of the HYPE token, what makes Hyperliquid attract so many people’s attention?

In just two years, Hyperliquid has quickly become the leading protocol in the crypto derivatives market and one of the most active perpetual contract decentralized exchanges.

In the blockchain space, Hyperliquid has uniquely adopted a product-first strategy, achieving organic growth without massive incentives and operating as a completely self-funded The funding team remains financially independent. With $21 billion in trading volume processed this week alone, its market share of perpetual contract trading volume has tripled this year, rising from approximately 11% in December 2023 to 33% this week.

At the same time, Hyperliquid has been running its own points program and will soon usher in the highly anticipated initial issuance of HYPE tokens (TGE). Laying the foundation for its future decentralization, EVM compatibility and community governance. (HYPE went online on the morning of November 29, with an opening price of US$3.2. The current market circulation is 333 million US dollars, and the transaction volume in the first hour reached US$157 million. As of the writing of this article, the currency price has reached more than US$9.4 , an increase of nearly 200%, with a market value of over US$3.2 billion)

Let’s discuss what makes Hyperliquid unique and what are the follow-up plans after HYPE goes online.

The uniqueness of Hyperliquid

Hyperliquid’s features go beyond traditional derivatives and provide It provides well-designed token creation tools, liquidity management, smooth user experience and revenue generation functions.

HIP-1: Native Spot Asset Standard

In addition to perpetual contracts, Hyperliquid also provides native token functionality through its HIP-1 token standard. Project parties can issue tokens through a simple five-step on-chain process, defining basic information such as token names, setting supply caps, and initial balances.

HIP-1’s most unique feature is its Dutch-style auction system for token trading tickers. In this auction process, token creators bid for tickers, with prices starting at a high and gradually increasing over a 31-hour period. Decline. This approach ensures a fair and transparent bidding and listing environment, keeping costs reasonable and regulating the pace of new listings. Hyperliquid only allows about 280 new tokens to be listed each year. This system prioritizes quality and prevents the market from being flooded with low quality. Project.

HIP-2: Super Liquidity

HIP-2 (aka Hyper Liquidity) ensures that the token has sufficient liquidity to maintain market stability. HIP-2 does this by providing a fully automated on-chain liquidity system for HIP-1 tokens, without the need for a second token. Third-party market maker

In practice, HIP-2 automatically places buy and sell orders for each token on Hyperliquid's order book and frequently adjusts these orders to match current market prices. This feature creates new opportunities for token creators and traders A reliable and stable trading environment

Inspired by automated market makers (AMMs) such as Uniswap, HIP-2 applies AMM principles to the traditional order book model, which is the default mode for centralized exchanges and which many traders prefer for accuracy Buy and sell pricing.

Essentially, HIP-2 acts as a built-in market-making service, ensuring stable and convenient trading for all tokens issued on the Hyperliquid platform. Experience.

Excellent user experience

Hyperliquid's user experience design is smooth and affordable, especially suitable for active traders, with two outstanding features: p>

-Fees-free trading: Hyperliquid adopts a fee-free trading model. Users do not need to pay transaction fees when placing orders - they only need to pay a small fee when depositing and withdrawing. < /p>

- HyperBFT: The platform uses a custom consensus mechanism called HyperBFT to handle large volumes of orders, with extremely low latency. Most transactions are completed within 0.2 seconds, ensuring delivery even during busy periods.Completed in 0.9 seconds. In addition, the system can handle up to 100,000 orders per second, and will be able to handle more orders after future updates.

By combining free transactions with fast, reliable processing, Hyperliquid delivers a responsive A fast and low-cost trading experience, suitable for both ordinary users and high-frequency traders.

Income opportunities from capital pools and copy trading

Another unique feature of Hyperliquid It has two types of fund pools, designed to help users earn income by following experienced traders or through platform activities:

-User Fund Pool : Allows users to automatically copy trades of experienced traders. By depositing funds into the fund pool, users share in the profits and losses of the fund pool manager and can obtain potential profits without actively trading. This setup is ideal for users who want to participate in the market but lack advanced trading knowledge, although users must choose their pool carefully.

-Protocol capital pool: Focus on low-risk income generation. For example, super liquidity provider pools earn rewards from market making, handling clearing, and protocol fees. This type of fund pool provides a more stable and predictable source of income through Hyperliquid's own operating activities, and is suitable for users who are interested in low-volatility income.

Prospects after the release of HYPE

HYPE will usher in key developments after its release, including Ethereum compatibility and community-driven governance model through HyperEVM:

HyperEVM

One ​​of the most anticipated developments following the release of HYPE is HyperEVM, which will introduce Ethereum compatibility to Hyperliquid. There are already 35 teams ready to deploy on HyperEVM. For example, Felix Protocol will launch the stablecoin feUSD, while HyperLend will bring a lending market to the first-tier chain.

After the issuance of HYPE, Hyperliquid’s decentralization journey will officially begin. Some will play an important role in platform governance and operational security. Through HYPE, token holders will gain voting rights on key decisions, including platform updates, fee structures, and broader changes, ensuring that the community has a say in determining the direction of Hyperliquid's development.

In addition to governance, HYPE will also play a role in establishing a distributed network of validators to improve network security. Currently, Hyperliquid is run by four core validators operated by team members. Following the initial issuance of the token, Hyperliquid plans to implement a validator network to decentralize transaction verification and reduce reliance on a single operator. This approach not only enhances network security and transparency, but also lays the foundation for a fully decentralized ecosystem that allows users to actively participate in building governance and operational resilience.

Summary

Hyperliquid has become a powerhouse in the trading space in a short period of time, with a product-first approach, a fast and cost-effective user experience, and a focus on organic growth And stand out in the market competition.

After the initial issuance of HYPE tokens, the ecosystem will move towards decentralization, providing community governance, rapid expansion of Ethereum compatibility through HyperEVM, and improvements Opening the door to security and resilience in a decentralized validator network. The future of Hyperliquid looks very promising, and the launch of HYPE is perfectly timed to drive further expansion.