Hyperliquid News Today: Hyperliquid's HIP-3 Upgrade Cultivates a Living Derivatives Ecosystem

Hyperliquid activated its HIP-3 protocol upgrade on October 13, 2025, enabling permissionless deployment of perpetual futures markets on its blockchain-based decentralized exchange (DEX). The upgrade allows any participant meeting on-chain requirements to launch a perpetual DEX by staking 500,000 to 1,000,000 HYPE tokens Coindesk^[1]. This marks a significant step toward decentralizing Hyperliquid's infrastructure, shifting from a curated market-listing model to an open financial platform Beincrypto^[3]. The activation follows a 10-minute network pause and includes safeguards such as validator slashing and open interest caps to ensure protocol security Bitcoinethereumnews.com^[5].

HIP-3 introduces a Dutch auction mechanism for asset listings, allowing the first three assets per market to be listed freely, with subsequent additions auctioned to the highest bidder Bitcoinethereumnews.com^[5]. Institutional participation is incentivized through high staking thresholds, with estimated daily fees from real-world assets (RWAs) potentially exceeding $500,000 based on traditional finance (TradFi) volumes Bitcoinethereumnews.com^[5]. The upgrade also supports exotic asset pairs, including commodities and pre-IPO trading, leveraging HyperEVM for smart contract integration and programmable market rules Banklesstimes^[4].

Hyperliquid's Total Value Locked (TVL) has grown from $564 million in late 2024 to over $5.5 billion as of October 2025 Beincrypto^[3], while its 24-hour trading volume reached $812 million Beincrypto^[3]. The platform processed $10 billion in liquidations during a recent market volatility event, outpacing rival exchanges like Binance Coindesk^[1]. The HYPE token surged 11–13.4% in the 24 hours preceding the upgrade, trading at approximately $42 with a $14.1 billion market cap Coindesk^[1]Bitcoinethereumnews.com^[5].

The activation aligns with Hyperliquid's roadmap to transition from a DEX to a modular infrastructure layer for on-chain derivatives. HIP-3 builds on prior upgrades (HIP-1 and HIP-2), completing a trilogy of foundational improvements Bitcoinethereumnews.com^[5]. The platform's cumulative trading volume under its HyperBFT consensus mechanism has exceeded $1 trillion Bitcoinethereumnews.com^[5]. Community feedback has been positive, with users highlighting the upgrade's potential to create a "living ecosystem" Beincrypto^[3].