Written by: TxnSheng, Crypto KOL
Compiled by: zhouzhou, BlockBeats
Editor's Note: This article introduces Hyperliquid (an innovative decentralized trading platform) that offers a faster, safer on-chain trading experience by combining the efficiency of centralized exchanges with the transparency of blockchain. It highlights Hyperliquid's technological breakthroughs, such as dedicated L1 blockchain, HIP-1 and HIP-2 token standards, EVM compatibility, staking features, etc., and points out its community-driven and self-funding model, emphasizing the platform's unique value and future potential.
The following is the original content (reorganized for readability):
A $1.2 billion airdrop, with 31% already distributed. Fully unlocked at TGE. HYPE was initially priced at $3.90 upon launch, and then rose to a peak of $27 within two weeks. This value growth demonstrates why Hyperliquid's airdrop is considered one of the most successful and valuable in crypto history. So how did Hyperliquid achieve this? Why is there so much attention? Let's delve into it.
The team behind HYPE
Hyperliquid Labs is led by Jeff Yan and Iliensinc, who are Harvard classmates committed to revolutionizing on-chain trading. Team members come from top institutions such as Caltech, MIT, Citadel, Hudson River Trading, and Nuro. In 2020, they started as crypto market makers until 2022 when they turned to the DeFi space due to dissatisfaction with outdated, cumbersome platforms.
Hyperliquid Labs has always remained fully self-funded, avoiding the influence of venture capital, focusing on one goal: to combine the efficiency of centralized exchanges with the transparency of DeFi.
Hyperliquid L1: Custom-built for performance
Hyperliquid's Layer 1 blockchain is not just another generic chain; it is built specifically for high-performance perpetual contract order book exchanges, employing a custom consensus algorithm called HyperBFT that fully on-chains margin and matching engine states. What is the result? Complete decentralization while maintaining high speed. Imagine Binance, but operating fully on-chain.
Why this is important:
Lightning-fast response: median latency of 0.2 seconds (99th percentile at 0.9 seconds).
High throughput: Processing 200,000 transactions per second.
Huge daily trading volume: over $10 billion.
Redefining Token Standards: HIP-1 and HIP-2
Hyperliquid has launched HIP-1 and HIP-2, two revolutionary standards that maximize the utility and liquidity of tokens.
HIP-1: Native token with built-in trading functionality
HIP-1 allows users to create fungible tokens directly linked to the on-chain spot order book, elevating tokens to specialized financial instruments.
Compared to ERC-20: HIP-1 adds trading functionality to tokens.
Superior to SPL tokens: Unlike SPL tokens that rely on external DEX platforms or liquidity pools, HIP-1 tokens ensure instant tradability and high performance, tailored for financial assets.
HIP-2: Embedded liquidity at issuance
HIP-2 permanently binds liquidity to HIP-1 tokens, addressing liquidity issues from the moment of issuance.
Innovative mechanism: Combining liquidity with token standards.
Instant depth: Ensures a seamless trading experience unmatched by Ethereum liquidity pools.
Auctions: The key to successful token issuance
The token deployment process of Hyperliquid utilizes a unique auction mechanism to determine gas fees. Each auction lasts for 31 hours, starting at a high price and will linearly decrease to 10,000 USDC if unsold.
Recent Highlights
GOD - 975,746.79
CREAM - 546,967.35
MON - 487,936.86
This means that after GOD closes at $975,746.79, the starting price for the next auction will be $1.95 million! These auctions are public and can be viewed in real-time statistics on Hypurrscan.
Hypurr Fun: Designed for 'trench hunters'
Hypurr Fun (HFUN) is a launchpad within the Hyperliquid ecosystem, tailored for 'trench hunters'—those crypto enthusiasts seeking high-potential tokens and wishing to participate at the earliest stages.
Main Features:
1. Telegram Bot Integration
Interact with Hypurr Fun through a dedicated Telegram bot.
Buy tokens, monitor status, and receive alerts on Telegram.
Join the Prelaunch market and Hypurr channel for real-time updates on token issuance.
2. Token creation and issuance
Token issuance is conducted using a bonding curve mechanism similar to Pump.fun.
Promising tokens can automatically transition to Hyperliquid's spot market.
Once the liquidity threshold (e.g., 80% of tokens sold) is reached, the proceeds will be used to ensure Hyperliquid's listing qualification.
3. Trench Mechanism
Pre-Launch Market: The trench is the trading phase for token pre-issuance, focusing on uncovering promising tokens.
Auction Participation: The funds from Hypurr Fun sales will be used for Hyperliquid's Dutch auction, aiming to ensure spot listing.
PVP.trade: Upcoming Airdrop
PVP.Trade is a Telegram bot integrated with the Hyperliquid ecosystem, designed for social and competitive trading. It is particularly appealing to airdrop hunters, as active trading now accumulates points that affect future rewards.
Main Features:
1. Trading Bot
Execute trades directly through Telegram.
Supports leveraged and spot trading on the Hyperliquid platform.
2. Community Interaction
Social trading features allow users to view the holdings of group members.
Facilitating collaboration and learning within the trading community.
3. Rewards and points system
Earn points through trading, which will be used for upcoming token airdrops.
Incentivizing users to actively use bots for trading.
HyBridge: Cross-chain asset bridging
HyBridge is a cross-chain bridging tool designed to simplify the process of transferring assets into the Hyperliquid ecosystem, making it easier for you to move tokens from multiple blockchains like Ethereum and Solana to Hyperliquid.
EVM: Expanding the Hyperliquid ecosystem
Hyperliquid recently launched the Ethereum Virtual Machine (EVM) on the testnet, providing developers with the opportunity to build and experiment with Ethereum-compatible applications. This feature allows users to migrate existing EVM applications or create new front-ends, promoting greater participation in the Hyperliquid ecosystem. The EVM operates through a JSON-RPC interface, enabling seamless interaction with the blockchain.
In addition to the launch of EVM, the Hyperliquid testnet now also supports staking features. This development allows users to participate in staking activities, contributing to network security while earning rewards in the process. As the platform continues to evolve, these features will play a crucial role in fostering community involvement and incentivizing user participation.
Developer Information:
JSON-RPC interface: https://api.hyperliquid-testnet.xyz/evm
Chain ID: 998
Try staking on the Hyperliquid testnet here
Learn how to build trading bots using the Hyperliquid Python library
Learn here how to deploy programmable wallets on Telegram
For more information, please check the Hyperliquid documentation.
Conclusion: The future of on-chain trading
Hyperliquid represents a significant breakthrough in DeFi development by combining the speed and efficiency typically found in centralized exchanges with the transparency and security of blockchain technology, creating a genuinely revolutionary product in the crypto space. The platform's success is not only measured by metrics such as token price or daily trading volume but also by the organic and comprehensive ecosystem it has built.
From a specially designed L1 blockchain and innovative token standards (HIP-1 and HIP-2) to user-friendly interfaces like Hypurr Fun and PVP Trade, every component is meticulously designed to enhance the trading experience. The recent addition of EVM compatibility and staking features on the testnet further demonstrates Hyperliquid's commitment to continuous innovation and ecosystem expansion.
What makes Hyperliquid stand out is not only its technical achievements but also its community-centric philosophy. By remaining self-funded and avoiding the interference of venture capital, the team is always focused on building a platform that truly serves user needs. As various components come into place, Hyperliquid will fundamentally transform the way we conduct on-chain trading. They are not just following the rules of cryptocurrency—they are rewriting them.
