Author: Chen Mo cmDeFi
Why @HyperliquidX is more successful than other Perps is the most discussed topic today. Let me talk about $HYPE from my personal experience. One shot to the end 🧵
1. Technical mechanism perspective
The key here is actually Vault. This mechanism is available on GMX and Jupiter, but Hyperliquid's Vault is an evolved version, with Protocol Vaults (HLP) and User Vaults, opening the door to diversification.
At the same time, the emergence of diversified Vaults has also solved the liquidity problem of long-tail assets. The trading of long-tail assets is the core competitiveness of Perps dex over cex, and it is also a problem that many competitors have been exploring to solve.
Then there is the composability as a chain, which directly skips the transition process from Protocol to Chain and goes straight to the final round, opening up space in both valuation and imagination.
2. Market perspective
Here are a few bonus points, which are actually worth learning from many projects.
(1) Do not raise funds, do not pursue listing on a large firm, and do not deliberately spend money on advertising. It is easier to gain favor in this round of the market by taking a bottom-up approach.
(2) We are willing to give out airdrops.
(3) No PUA. Although there were disputes over score dilution in the early stages, it is generally clean and neat, and there is no endless cycle of completing tasks and then getting NFTs.
(4) Positioning is based on the "chain", providing imagination and valuation space. Hyperliquid is actually a chain, so various defi and Perps combinations can be built on it, such as stablecoins, lending, etc. Therefore, a phenomenon occurred. At the beginning, everyone compared the valuation of some Perps dex with $HYPE, and gradually felt that something was wrong, so they began to compare it with the public chain. This alternative sense of gap in upward breakthrough once again drove market sentiment.
(5) Positioning as "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. This also meets the expectations of the last piece of the DeFi puzzle.
Summarize
The market is uncontrollable, and the right time, right place and right people are difficult to replicate, but the technical mechanism is certain. For now, there will be no major technological innovations in the future. Vault is to Perps as AMM is to 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 Perps' position, and it may no longer be the vase that looks promising but cannot develop.