Article source: Chen Mo cmDeFi
Author: CM
The question of why @HyperliquidX is more successful than other Perps is the most discussed topic today. Speaking from personal experience, is $HYPE a one-stop solution?
1. Technical Mechanism Perspective
The law here is actually the Vault. This mechanism exists in GMX and Jupiter, but Hyperliquid's Vault is an evolved version, featuring Protocol Vaults (HLP) and User Vaults, opening the door to diversification.
At the same time, the emergence of diversified Vaults has also addressed the liquidity problem of long-tail assets, and trading of long-tail assets is the core competitiveness of Perps DEX against CEX, which is a problem many competitors have been exploring to solve.
Then there is the composability as a chain, skipping the transition from Protocol to Chain, reaching the finals directly, opening up space in valuation and imagination.
2. Market Perspective
Here are a few bonus points that are actually worth learning for many projects.
(1) Not seeking financing, not pursuing major exchanges, and not intentionally spending on advertising, taking a bottom-up approach is more likely to gain favor in this market cycle.
(2) Airdrops are generous.
(3) No PUA. Although there were controversies about the dilution of scores in several early stages, overall it is clean and straightforward, without going back and forth on tasks, or endlessly cycling through tasks and NFTs.
(4) Positioned on a 'chain' basis, providing space for imagination and valuation. Hyperliquid is essentially a chain, allowing for the construction of various DeFi and Perps combinations, such as stablecoins, lending, etc. This led to a phenomenon where initially, people compared the valuation of some Perps DEX to $HYPE, but slowly felt it was off, and started comparing it to public chains. This alternative sense of breakthrough once again stimulated market sentiment.
(5) Positioned as 'on-chain Binance', which is quite topical, as DEX, lending, stablecoins, and other DeFi protocols have basically secured a place in the market, with only the Perps track still struggling, fulfilling the expectation of the last piece of the DeFi puzzle.
Summary
The market is uncontrollable; factors like timing, location, and human relations are difficult to replicate. The technical mechanism is certain. Currently, without significant technological innovations in the future, the Vault to Perps is equivalent to AMM to DEX. dYdX has also recently introduced Vaults, and more micro-innovations may involve various forms of Vaults in the future. The success of this mechanism has established the position of Perps, which may no longer be the previously promising but underdeveloped vase.
