Hyperliquid Launches High-Performance Blockchain for Perpetual Futures Trading

Coin WorldFriday, Feb 21, 2025 3:12 am ET
1min read

Hyperliquid (HLP) is a decentralized perpetual exchange operating on its own high-performance layer-1 blockchain, HyperEVM. It specializes in perpetual futures trading, allowing users to speculate on crypto prices without holding the underlying assets. The HyperEVM mainnet has been launched with smart contract capabilities while preserving its fast, low-latency trading.

Hyperliquid's key feature is its onchain order book, which enables real-time, transparent trading with minimal latency. It supports a range of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), Solana (SOL), and Sui (SUI). The platform bridges the gap between centralized finance (CeFi) and DeFi, offering a seamless, high-speed trading experience tailored for modern decentralized finance (DeFi) users by addressing challenges like inefficient order matching and high latency.

Hyperliquid has adopted a community-driven approach, rejecting venture capital funding, allocating 70% of its tokens to users, and redistributing all revenue back to the community. As of Feb. 5, Hyperliquid has a market capitalization of approximately $8.92 billion.

Hyperliquid operates on a layer-1 blockchain explicitly designed for derivatives trading. For rapid transaction processing, Hyperliquid uses HyperBFT, a proprietary consensus algorithm. This system ensures that trades, orders, and liquidations occur in real-time, with all transactions transparently recorded onchain.

A fully onchain perpetual order book exchange is a core feature of the platform. Unlike decentralized exchanges (DEXs) that rely on automated market makers (AMMs), Hyperliquid adopts a traditional order book system. This approach allows traders to place bids and asks for various assets, resembling the experience of centralized exchanges (CEXs). As of Feb. 5, Hyperliquid supports up to 100,000 orders per second. Orders are matched using a price-time priority mechanism, ensuring fair execution for all market participants.

Hyperliquid has a decentralized clearinghouse that manages users’ margin balances and positions. The exchange supports both cross-margin and isolated-margin trading. Cross-margin allows traders to distribute collateral across multiple positions, while isolated-margin dedicates specific collateral to each trade, reducing liquidation risks for other holdings. This system enhances traders’ flexibility and risk management.

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