Not seeking financing, not pursuing big exchanges, and not deliberately spending money on ads. Following a bottom-up approach is easier to garner favor in this market cycle.
Written by: CM
Why @HyperliquidX is more successful than other Perps is the most discussed topic today, sharing my personal experience with $HYPE, a one-stop thread 🧵
1. Technical Mechanism Perspective
The mechanism here is actually the Vault, which 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.
The emergence of diversified Vaults also addresses the liquidity issue of long-tail assets, and trading long-tail assets is the core competitiveness of Perps DEX against CEX, which is a problem many competitors have been exploring to solve.
Next is the composability of being a chain, directly skipping the transition from Protocol to Chain, reaching the finals, and opening up space in both valuation and imagination.
2. Market Perspective
Here are a few bonus points, which are actually worth learning for many projects.
(1) Not seeking financing, not pursuing big exchanges, and not deliberately spending money on ads. Following a bottom-up approach is easier to garner favor in this market cycle.
(2) Generous airdrops.
(3) No PUA, although there were controversies over score dilution in a few early stages, overall it’s clean and straightforward, without constantly repeating tasks or endlessly cycling through tasks and NFTs.
(4) Positioned as a 'chain', providing imaginative and valuation space, Hyperliquid is essentially a chain, allowing for the construction of various combinations of DeFi and Perps, such as stablecoins, lending, etc. This phenomenon led to an initial comparison of some Perps DEX valuations with $HYPE, but gradually felt off, leading to comparisons with public chains. This alternative breakthrough in perception once again boosted market sentiment.
(5) Positioned as 'on-chain Binance', it has a lot of discussion potential, since DEX, lending, stablecoin, and other DeFi protocols have basically secured a place in the market, and only the Perps track is still struggling, which also meets the expectations for the final piece of the DeFi puzzle.
Summary
The market is uncontrollable; timing, location, and human factors are difficult to replicate. The technical mechanism is certain. Currently, without significant technological innovations in the future, the Vault for Perps is equivalent to AMM for Dex. dYdX recently introduced Vaults, and more micro-innovations may incorporate various forms of Vaults in the future. The success of this mechanism has established the position of Perps, which may no longer be the promising vase that just couldn't develop in the past.