Hyperliquid News Today: Hyperliquid's BLP and HIP-3 Signal DeFi's Structural Shift

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Saturday, Nov 8, 2025 6:26 am ET1min read
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- Hyperliquid tests BLP lending protocol on Hypercore testnet, enabling USDC/PURR borrowing/lending with potential multi-collateral expansion.

- HIP-3 framework allows permissionless perpetual market creation via HYPE staking, decentralizing governance and introducing slashing penalties for misconfigured markets.

- RedStone's HyperStone

oracle
integration provides low-latency price feeds for HIP-3 markets, enhancing security and reducing manipulation risks through real-time data verification.

- HYPE token economics gain traction via staking, governance, and fee-sharing, while RED token benefits from increased oracle demand, though regulatory and technical risks persist.

Hyperliquid, a high-performance decentralized exchange (DEX) built on its proprietary Layer 1 blockchain, is reportedly testing a native lending market dubbed BLP (BorrowLendingProtocol) on its Hypercore testnet. Analyst MLM noted that the feature, currently in experimental stages, allows users to engage in borrowing, lending, and withdrawals, with initial support for

USDC
and PURR tokens, according to a
Lookonchain report
. The mechanism is speculated to underpin a multi-collateral system by introducing a secure lending layer, though details remain unconfirmed.
This development aligns with broader efforts to expand Hyperliquid's infrastructure beyond derivatives trading into foundational DeFi protocols.

The evolution of Hyperliquid's ecosystem is further accelerated by HIP-3, a framework that transforms the platform into a permissionless market-creation protocol. Under HIP-3, any participant can deploy perpetual markets by staking HYPE tokens, Hyperliquid's native asset, according to a

FinanceFeeds analysis
. This shift decentralizes market creation, previously controlled by the core team, and introduces slashing penalties for misconfigured or malicious markets, ensuring system integrity. The framework also ties HYPE utility to staking, governance, and fee-sharing, creating a flywheel effect where token demand and network growth reinforce each other.

A critical enabler of HIP-3 is RedStone's HyperStone

oracle
, which provides low-latency price feeds essential for stable derivatives trading. During testnet trials, HyperStone processed over 103 million data updates across key markets, achieving near-instant finality, the FinanceFeeds analysis noted. RedStone's integration ensures that new HIP-3 markets operate on verifiable, real-time data, reducing risks of manipulation or liquidation cascades. The partnership creates a symbiotic relationship: Hyperliquid gains a secure oracle layer, while
RedStone
expands its footprint in a rapidly scaling DeFi infrastructure.

The implications for token economics are significant. HIP-3's staking requirements lock up HYPE supply, potentially driving scarcity and price appreciation. Deployers share in trading fees, aligning incentives with market growth, while RedStone's

RED
token benefits from increased oracle usage as HIP-3 markets proliferate, the FinanceFeeds analysis observed. Analysts project HYPE could reach $50–$200 depending on adoption, while RED's value hinges on oracle market share and cross-chain integrations. However, risks such as governance failures, technical issues, or regulatory constraints remain.

Hyperliquid's BLP and HIP-3 initiatives highlight its ambition to redefine decentralized derivatives. While BLP's native lending market is still speculative, HIP-3's permissionless model and RedStone's oracle integration represent a structural shift in DeFi infrastructure. The coming months will test whether these innovations can sustain growth or face challenges from execution risks and market saturation.