Hyperliquid: The Next Generation of Decentralized Finance Arena

Hyperliquid is a high-performance on-chain perpetual contract trading platform that operates on a self-developed Layer 1 blockchain. It offers centralized exchange-level performance while maintaining on-chain transparency. The platform's native token $HYPE is responsible for network governance, can reduce trading fees after being staked, and captures value through buybacks via initial auction listings.

The core liquidity of the protocol comes from the HLP Vault, which is a hybrid vault combining the functions of market makers and liquidators, accounting for over 90% of the total locked value (TVL). In March 2025, Hyperliquid encountered a severe black swan event - the $JELLYJELLY manipulation incident, which nearly triggered a chain liquidation of the entire vault. This incident exposed the centralization issues in validator governance, and the Hyper Foundation had to intervene to prevent a system collapse.

Nevertheless, Hyperliquid quickly rebounded after the crisis thanks to the stickiness of its whale users and the expansion of its ecosystem, setting new highs in trading volume, open interest, and $HYPE price. Today, the platform ( includes HyperEVM) and has launched over 21 new dApps, covering NFT, Decentralized Finance tools, and treasury infrastructure, with functions far exceeding that of a simple perpetual contract exchange.

Core Advantages of Hyperliquid

1. A truly community-driven token model: no VC investment, over 70% of $HYPE allocated to the community.

2. CEX-level trading experience, but without CEX risks: Achieved speeds comparable to Binance, but deployed on-chain.

3. Product Depth: Not limited to perpetual contracts, but also includes the spot market, HyperEVM, HLP vault, copy trading system, and other diversified functions.

HyperEVM Ecosystem

HyperEVM is the smart contract layer launched by Hyperliquid, supporting EVM-compatible dApp development. It forms a three-layer architecture together with the core trading layer HyperCore and the consensus layer HyperBFT. Multiple popular projects have already been deployed on HyperEVM, including DEX( such as Hyperswap, Liquidswap), DeFi protocols( such as Hyperlend, Felix), and Launchpad, among others.

The importance of HyperEVM lies in:

1. Promote the consumption of $HYPE as a gas payment token to form a deflationary logic.
2. It may affect the future distribution of airdrops, further driving the migration of users and developers.
3. Forming network effects and positive cycles: New project deployment → Increased gas consumption → Supporting $HYPE value → Attracting more users and developers.

Conclusion

Hyperliquid is becoming the only on-chain trading platform needed, from spot to perpetual, and across the entire ecosystem. It is not only challenging other DEXs but is also directly targeting centralized exchanges like Binance. With its market share advantages, unique economic model, top founding team, and mature product ecosystem, Hyperliquid has established a competitive barrier that is difficult to replicate.