$800 a cent? Could Hyperliquid be the biggest airdrop in history?
Written by Black Swan
Compiled by Alex Liu, Foresight News
background
Exchanges have always been important, haven’t they? They are where trading begins, and they are the backbone of the global financial system. But the concentration of all that power in the hands of a few is problematic.
As things get crazier, everyone thinks centralization is the answer. But guess what? We are entering a new era — a truly decentralized perpetual swap exchange with its own L1 blockchain is leading the way, @HyperliquidX. It gives you the speed of centralized exchanges, but with lightning-fast transaction times and deep liquidity.
Now, traders can benefit from the above experience while retaining control over their assets, as well as the transparency and security inherent in decentralized systems. This is exactly the key need in the DeFi space that Hyperliquid solves.
But Hyperliquid is about much more than that.
So, what is Hyperliquid?
In short, Hyperliquid is a high-performance L1 optimized from the ground up for fast, secure, and cheap transactions. Thanks to its premium user experience, diverse supported assets, and points program, Hyperliquid L1’s flagship order book DEX has seen nearly $320 billion in derivatives trading volume since its launch early last year.
After using Hyperliquid for six months and having dabbled in almost every decentralized perpetual exchange: GMX, Zeta, Drift, LogX, you name it, I can say with a little bit of sarcasm that Hyperliquid is like the top student in the class. It’s faster, offers more features, and provides a great user experience.
Technical Overview
Hyperliquid Layer 1
Hyperliquid's blockchain is designed to run decentralized exchanges and support a variety of financial applications. It uses a consensus algorithm called HyperBFT, inspired by Hotstuff. The key advantages of HyperBFT include:
High throughput: 200,000 orders can be processed per second, significantly exceeding existing limits.
Non-Blocking Consensus: Allows transactions to be processed without waiting for previous block confirmations, thereby improving efficiency.
Fast block confirmation: Block production depends only on network latency, making communication between validators faster.
Hyperliquid provides everything a user might need:
High leverage (leverage can reach 50 times)
Competitive transaction fees
Multiple order types
Full or isolated margin
Dozens of assets available for trading
Lucrative and customizable vault
New customer acquisition system
......
What is HLP?
Market making for everyone
Welcome to a new era of decentralized market making with Hyperliquid’s HLP Vault.
Hyperliquid launches HLP vault, making market makers no longer an exclusive club for professionals. Now, anyone can participate in the liquidity game by depositing USDC in the HLP vault, with an annual interest rate ranging from 0 to 20%.
With the HLP Vault, everyday users can participate in the action and earn a portion of the trading fees. You don’t need to be part of an elite group or an institutional player to enjoy market making.
Fee distribution: The HLP Treasury distributes 20% of transaction fees to liquidity providers. The share depends on the proportion of liquidity invested in the pool.
HIP-1 and HIP-2
In addition to the perpetual contract market, Hyperliquid also offers spot markets built around two innovations: HIP-1 and HIP-2.
HIP-1 and HIP-2 represent significant advancements in the DeFi space. HIP-1 makes token creation and distribution easy, while HIP-2 ensures liquidity.
HIP-1: Permissionless Token Deployment and Spot Orders BooksKey
Key Features:
Permissionless deployment of native tokens
Create an on-chain spot order book
Flexible token distribution mechanism
benefit:
Allows users to create and list new tokens without centralized approval
Enable customizable token allocation strategies
Supporting a community-driven token ecosystem
HIP-2: Enhanced Liquidity Mechanism Concept: Inspired by Uniswap, HIP-2 introduces a new method to improve the liquidity of HIP-1 tokens.
concept:
A novel mechanism inspired by Uniswap to enhance liquidity in the HIP-1 token spot order book.
Key Features:
Permanent liquidity commitment to a special spot order book
Fully on-chain liquidity strategy
Liquidity synergies with other market participants
Ecosystem and Community
So, in addition to the technology behind L1, Hyperliquid has something that other L1s don’t. In a world where every new token seems to have venture capital backing, Hyperliquid took the opportunity to grow independently, consider a community-first approach, and honestly, their organic growth is pretty impressive.
This community-oriented approach attracts attention and focus from builders and users alike.
With its futures, spot markets, and HyperEVM L1, Hyperliquid is much more than just an on-chain perpetual contracts exchange. The ecosystem is expanding rapidly with numerous projects launching on L1.
A group of founders, builders, KOLs, MMs, and power users decided to build on the Hyperliquid ecosystem. Their work can be viewed here: Hyperliquid Ecosystem Diagram by HypurrCollective
Hyperliquid and Binance
Of course, Hyperliquid has done a good job in on-chain transactions, but let’s be honest; it still has a long way to go before it can dream of catching up with Binance.
Binance handles $40-60 billion in daily volume through futures trading, while Hyperliquid handles $1-3 billion in daily volume.
Hyperliquid has huge market potential and a long way to go, but they are just getting started.
According to the graph, Hyperliquid is estimated to account for approximately 2% to 3% of Binance’s trading volume.
Hyperliquid Points Prediction
The second season of Points ended on October 1st, and now everyone is discussing whether there will be more seasons before the potential Hyperliquid token debuts.
By the end of Season 2, the total points reached a staggering 51,062,258 points. The chart below shows how the price of 1 HL point has performed at different token FDVs and airdrop percentages.
So, here's the thing: We may see a lot of selling pressure on TGE as farmers may want to cash in. If I see a big sale, I'd jump on the opportunity to buy as much HYPE as I can. So keep an eye on Hyperliquid TGE - it'll be interesting.
Additionally, without venture capital backing, there is the opportunity to get a bigger piece of the airdrop pie. Some dream of up to 50% of the supply going to airdrops.
Since the community is at the heart of the project, I think a generous 20-25% airdrop is more realistic.
If FDV reaches $2 billion, our target is $9.79 per point.
800 USD / Points Theory Reality
@crypto_adair popularized this theory, which has almost become a meme in the crypto space. To turn fiction into reality, the following scenario is required:
Assuming 51 million points, 50% of the TGE is distributed to point holders.
80 billion FDV peak.
$80 billion * 50% = $40 billion.
$40 billion / 51 million points = $784 per point
Can Hyperliquid reach such a valuation? It is possible.
Is it possible? That’s another story. So, to achieve a sky-high valuation, our strategy is as follows:
Getting the big guys on board (institutional adoption): Hyperliquid is rolling out the red carpet for institutional investors. It’s like competing with Wall Street for money, but with a decentralized twist.
Open to Everyone: Hyperliquid isn’t just for the crypto crowd. Its mission is to bring financial services to typically overlooked parts of the world. By making decentralized exchanges and financial services available to anyone with Wi-Fi, Hyperliquid is making a real difference.
Final Thoughts
In recent months, we’ve seen projects like Starknet and ZKsync continue to struggle to build loyal communities beyond airdrop hunters.
Maintaining user interest after the points season ends will be a huge challenge. However, things are looking good for Hyperliquid. According to The Block, despite the points campaign ending on October 1, Hyperliquid still dominates in terms of trading volume:
Hyperliquid will be seen as one of the clearest bets of this cycle. You can call me biased, but I am very bullish on this project. I strongly encourage you to try the product and form your own opinion.
