Hyperliquid Exchange Launches with 200,000 Transactions Per Second

Hyperliquid Exchange, a decentralized exchange (DEX) operating on its proprietary Layer-1 blockchain, HyperEVM, combines the best features of centralized exchanges (CEXs) with decentralization. This platform is designed to offer traders low fees and rapid transaction processing, capable of handling up to 200,000 transactions per second. Hyperliquid’s proprietary consensus algorithm, HyperBFT, ensures both speed and security. The platform offers a range of features including gas-free transactions, an on-chain order book, high leverage trading, liquidity vaults, cross-chain compatibility, and advanced trading tools.

Hyperliquid was founded in 2020 and officially launched in 2023. The platform is headquartered in Singapore and was co-founded by Jeff Yan and Iliensinc, both Harvard alumni with strong backgrounds in finance and blockchain technology. The team includes members from prestigious institutions such as Caltech and MIT, as well as professionals from top firms like Citadel and Hudson River Trading. The project prioritizes community involvement, rejecting venture capital funding and allocating 70% of its tokens to users, with all revenue redistributed back to the community.

Hyperliquid’s key features include an on-chain order book, gas-free transactions, high leverage trading, liquidity vaults, cross-chain compatibility, and pro-level trading tools. The platform’s on-chain order book provides transparency, security, and speed-optimized transactions. Gas-free transactions are made possible by Hyperliquid’s control over its own Layer 1 chain, which covers underlying transaction costs internally. High leverage trading allows traders to amplify their positions, while liquidity vaults enable users to share trading strategies and earn profits based on vault leaders’ performance. Cross-chain compatibility supports single-step deposits from over 30 blockchains, and advanced trading tools cater to both retail and institutional traders.

Hyperliquid offers a range of trading options, including spot trading, perpetual trading, pre-launch futures contracts, margin trading, and up to 40x leverage. The platform supports multiple order types and provides advanced tools for executing various strategies. Community-owned liquidity pools and vaults allow users to open their own vaults or contribute to existing ones, sharing in the profits. The platform’s fast transactions on its custom Layer 1 blockchain, low fees, and no gas charges on trades make it an attractive option for traders. Additionally, Hyperliquid supports over 100 assets and offers multiple bridges to facilitate cross-chain transfers, enhancing liquidity and user flexibility.

However, Hyperliquid faces some criticisms, including limited withdrawal options, centralization concerns, and systemic risks. The platform has faced criticism over incidents such as the JELLY token controversy, where a large trader’s actions resulted in substantial losses for liquidity providers. Critics argue that mixed vaults expose users to systemic risk and that unrestricted position sizes allow potential manipulation. Despite these concerns, Hyperliquid remains a popular choice for traders seeking a decentralized exchange with advanced features and low fees.

Hyperliquid is accessible in major global markets, including the United Kingdom, Singapore, South Africa, France, Nigeria, Australia, Vietnam, and many others, spanning over 180 countries. Users in these supported countries can trade over 100 crypto assets on the platform without requiring Know Your Customer (KYC) verification. However, the platform explicitly restricts users from certain jurisdictions, including the US, Ontario, Canada, Cuba, Iran, Myanmar, North Korea, Syria, and certain Russian-occupied regions of Ukraine.

Hyperliquid’s trading fees are based on a rolling 14-day cumulative trading volume and are assessed at the end of each day in UTC. The platform offers perps fee tiers, spot fee tiers, staking tiers, and maker rebates. Staking Hyperliquid’s native token (HYPE) qualifies users for trading fee discounts, with the more tokens staked, the higher the discount tier. Maker rebates are paid out continuously on each trade directly to the trading wallet, providing liquidity providers with additional incentives.

To create a new Hyperliquid account, users can visit the platform’s official website and connect their wallet. The process involves either using an email wallet or importing an existing EVM-compatible wallet. Once connected, users can deposit USDC or other supported cryptocurrencies as collateral and start trading on the platform. Hyperliquid offers a user-friendly experience with one-click order execution and wallet connection, streamlining the trading process similar to centralized platforms.

In conclusion, Hyperliquid Exchange is a decentralized exchange that offers a comprehensive interface for traders to participate in derivatives trading. With its advanced features, low fees, and community-focused approach, Hyperliquid provides a viable alternative to centralized exchanges. However, traders should be aware of the potential risks and criticisms associated with the platform before deciding to use it.