Written by: TxnSheng, Crypto Kol
Compiled by: zhouzhou, BlockBeats
Editor's Note: This article introduces Hyperliquid (an innovative decentralized trading platform) that combines the efficiency of centralized exchanges and the transparency of blockchain to provide a faster and more secure on-chain trading experience. It also highlights Hyperliquid's technical breakthroughs, such as a dedicated L1 blockchain, HIP-1 and HIP-2 token standards, EVM compatibility, staking functionality, and emphasizes its community-driven and self-funded model, showcasing the platform's unique value and future potential.
The following is the original content (the original content has been edited for easier reading):
$1.2 billion airdrop, 31% already airdropped. Fully unlocked at TGE. HYPE was initially priced at $3.90 upon launch and has since risen, reaching 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 has it garnered so much attention? Let's dive in.
The Team Behind HYPE
Hyperliquid Labs is led by Jeff Yan and Iliensinc, who are Harvard classmates, dedicated to revolutionizing on-chain trading. The team members come from top institutions like Caltech, MIT, Citadel, Hudson River Trading, and Nuro. In 2020, they started as crypto market makers, until in 2022, dissatisfied with outdated and cumbersome platforms, they pivoted to the DeFi space.
Hyperliquid Labs has always maintained self-funding, avoiding the influence of venture capital, and focusing on one goal: to combine the efficiency of centralized exchanges with the transparency of DeFi.
Hyperliquid L1: Tailored for Performance
Hyperliquid's Layer 1 blockchain is not just another general-purpose chain; it is custom-built for high-performance perpetual contract order book exchanges, using a custom consensus algorithm called HyperBFT, fully on-chain-izing the margin and matching engine states. The result? Fully decentralized, yet maintaining high speed. Imagine Binance, but fully on-chain.
Why is this important:
- Blazing fast response: Median latency of 0.2 seconds (99th percentile at 0.9 seconds).
- High throughput: 200,000 transactions per second.
- Massive daily trading volume: Over $10 billion.
Redefining Token Standards: HIP-1 and HIP-2
Hyperliquid has introduced HIP-1 and HIP-2, two revolutionary standards that maximize the utility and liquidity of tokens.
HIP-1: Native Tokens 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 the utility of 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, custom-built for financial assets.
HIP-2: Embedding Liquidity at Issuance
HIP-2 permanently binds liquidity to HIP-1 tokens, solving the liquidity problem from the moment of issuance.
- Innovative Mechanism: Combining liquidity with the token standard.
- Instant Depth: Ensuring a seamless trading experience unmatched by Ethereum liquidity pools.
Auctions: The Key to Successful Token Deployment
Hyperliquid's token deployment process utilizes a unique auction mechanism to determine the gas fee. Each auction lasts 31 hours, starting at a high price and linearly decreasing to 10,000 USDC if unsold.
Recent Highlights
- GOD - $975,746.79
- CREAM - $546,967.35
- MON - $487,936.86
This means that after the GOD auction closed at $975,746.79, the starting price for the next auction will be $1.95 million! These auctions are public, and real-time statistics can be viewed on Hypurrscan.
Hypurr Fun: Designed for "Trench Hunters"
Hypurr Fun (HFUN) is a launchpad in the Hyperliquid ecosystem, custom-built for "trench hunters" - crypto enthusiasts who seek high-potential tokens and want to participate in the earliest stages.
Key Features:
1. Telegram Bot Integration
Interact with Hypurr Fun through a dedicated Telegram bot.
Buy tokens, monitor status, and receive alerts directly in Telegram.
Join Prelaunch markets and the Hypurr channel to get real-time token launch updates.
2. Token Creation and Issuance
Token issuance using a bonding curve mechanism similar to Pump.fun.
Promising tokens can automatically transition to Hyperliquid's spot market.
Once a liquidity threshold is met (e.g., 80% of tokens sold), the sale proceeds will be used to secure Hyperliquid listing eligibility.
3. Trench Mechanism
Pre-Launch Market: The trench is the token pre-sale trading stage, focused on unearthing promising tokens.
Auction Participation: Funds from Hypurr Fun sales will be used for Hyperliquid's Dutch auctions, aiming to ensure spot market listings.
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 will influence future rewards.
Key Features:
1. Trading Bot
Execute trades directly through Telegram.
Supports leverage and spot trading on the Hyperliquid platform.
2. Community Interaction
Social trading features allow users to view group members' positions.
Fosters collaboration and learning within the trading community.
3. Rewards and Points System
Earn points through trading, which will be used for an upcoming token airdrop.
Incentivizes users to actively engage with the bot and participate in trading.
HyBridge: Cross-Chain Asset Bridging
HyBridge is a cross-chain bridging tool that aims to simplify the process of transferring assets into the Hyperliquid ecosystem, allowing you to easily move tokens from Ethereum, Solana, and other blockchains to Hyperliquid.
EVM: Expanding the Hyperliquid Ecosystem
Hyperliquid recently launched the Ethereum Virtual Machine (EVM) on its testnet, providing developers with the opportunity to build and experiment with Ethereum-compatible applications. This feature allows users to either migrate existing EVM applications or create new frontends, facilitating greater participation in the Hyperliquid ecosystem. The EVM operates through a JSON-RPC interface, enabling seamless interaction with the blockchain.
In addition to the EVM launch, Hyperliquid's testnet now also supports staking functionality. 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 engagement and incentivizing user participation.
Developer Information:
- JSON-RPC Interface: https://api.hyperliquid-testnet.xyz/evm
- Chain ID: 998
- Try Hyperliquid testnet staking here
- Learn how to build trading bots using the Hyperliquid Python library
Learn how to deploy programmable wallets on Telegram here
For more information, please refer to the Hyperliquid documentation
Conclusion: The Future of On-Chain Trading
Hyperliquid represents a major breakthrough in the development of DeFi, by combining the speed and efficiency of centralized exchanges with the transparency and security of blockchain technology, Hyperliquid has created a truly revolutionary product in the crypto space. The success of the platform is measured not only by token prices or daily trading volumes, but by the organic and comprehensive ecosystem it has built.
From the specially designed L1 Block Chain and innovative token standards (HIP-1 and HIP-2), to user-friendly interfaces like Hypurr Fun and PVP Trade, every component has been carefully designed to enhance the trading experience. The recent addition of EVM compatibility and staking functionality on the testnet further demonstrates Hyperliquid's commitment to continuous innovation and ecosystem expansion.
What sets Hyperliquid apart is not only its technological achievements, but its community-first ethos. By maintaining self-funding and avoiding venture capital interference, the team has remained focused on building a platform that truly serves user needs. As the various pieces fall into place, Hyperliquid will fundamentally change the way we conduct on-chain transactions. They are not just following the rules of cryptocurrency - they are rewriting them.
