Author: Chen Mo cmDeFi
Regarding why @HyperliquidX is more successful than other Perps, this is the most discussed topic today. From personal experience, let's talk about $HYPE, a seamless narrative 🧵
1. From a technical mechanism perspective
The key here is actually the Vault; this mechanism exists in 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, with the emergence of diversified Vaults, the liquidity problem of long-tail assets has been solved, and the trading of long-tail assets is the core competitiveness of Perps DEX against CEX, which is also a problem that many competitors have been exploring to solve.
Then there's the composability of the chain, which directly skips the transition from Protocol to Chain, reaching the finals, opening up space in both valuation and imagination.
2. From a market perspective
Here are a few additional points, which are actually worth learning for many projects.
(1) Not seeking financing, not pursuing big exchanges, and not deliberately spending money on ads, taking a bottom-up approach is easier to gain goodwill in this round of the market.
(2) The airdrop is generous.
(3) No PUA; although there were some controversies about score dilution in early stages, overall it is clean and straightforward, without going back and forth on tasks or endlessly looping tasks and NFTs.
(4) Positioned on the 'chain' as a foundation, providing imaginative and valuation space, Hyperliquid is actually a chain, so various DeFi and Perps combinations can be built on it, such as stablecoins, lending, etc. This phenomenon has led to the initial comparison of the valuations of some Perps DEX with $HYPE, gradually feeling off, and starting to compare with public chains. This alternative sense of upward breakthrough has once again driven market sentiment.
(5) Positioned as 'on-chain Binance', it has plenty of topics to discuss, because DEX, lending, stablecoin, and other DeFi protocols have basically gained a foothold in the market, only the Perps track is still struggling, which also meets the expectations of the last piece of the DeFi puzzle.
Summary
The market is uncontrollable; factors like timing, location, and partnerships are hard to replicate, while the technical mechanism is certain. As it stands, unless there are significant technological innovations in the future, the Vault for Perps is equivalent to AMM for DEX. dYdX has also recently introduced Vaults, and more micro-innovations may roll out various forms of Vaults. The success of this mechanism has established the position of Perps, which may no longer be that seemingly promising yet undeveloped vase.