Author: CM, Source: Twitter @cmdefi
The topic that is most discussed today is why @HyperliquidX is more successful than other Perps, and I will share my personal experience with $HYPE.
1. From the technical mechanism perspective
The key here is the Vault, a mechanism that also exists on GMX and Jupiter, but the Vault of Hyperliquid is an evolved version, with Protocol Vaults (HLP) and User Vaults, opening the door to diversification.
The diversified Vault also solves the problem of liquidity for long-tail assets, which is the core competitiveness of Perps dex over cex, and a problem that many competitors have been exploring to solve.
Then, as a chain, its composability directly skips the transition from Protocol to Chain, reaching the finals, and opens up space in terms of valuation and imagination.
2. From the market perspective
Let me mention a few bonus points that are worth learning from many projects:
(1) No fundraising, no pursuit of large institutions, and no deliberate spending on advertising, taking a bottom-up approach that is more likely to gain favor in the current market.
(2) Generous with airdrops.
(3) No PUA, although there were controversies over dilution of shares in the early stages, but overall it is clean and tidy, without endless tasks and NFTs.
(4) Positioning based on "chain", providing space for imagination and valuation. Hyperliquid is actually a chain, so various DeFi and Perps combinations can be built on it, such as stablecoins, lending, etc. As a result, a phenomenon emerged where people initially compared the valuation of some Perps dex with $HYPE, and gradually felt it was not right, and started to compare it with public chains, which again drove market sentiment with this alternative sense of breakthrough.
(5) Positioning as "on-chain Binance", with great topic-worthiness, because DeFi protocols such as dex, lending, and stablecoins have basically found their place in the market, and only the Perps track is still struggling, which also meets the expectation of the last piece of the DeFi puzzle.
Conclusion
The market is uncontrollable, and the time, place, and people factors are difficult to replicate, but the technical mechanism is certain. From the current perspective, without major technical innovations in the future, Vault is to Perps what AMM is to Dex. DYDX has also recently introduced Vault, and more micro-innovations in the form of Vault may emerge in the future, and the success of this mechanism has established the status of Perps, which may no longer be the vase that seemed promising but just couldn't take off.
