The strong remain strong: Everything you need to know about the Hyperliquid ecosystem

Original Title: “Everything You Need To Know About Hyperliquid”

Author: TxnSheng, Crypto Kol

Compiler: zhouzhou, BlockBeats

Editor's Note: This article introduces Hyperliquid (an innovative decentralized trading platform), which combines the efficiency of centralized exchanges with the transparency of blockchain to provide a faster and safer on-chain trading experience. It also emphasizes Hyperliquid's technological breakthroughs, such as a dedicated L1 blockchain, HIP-1 and HIP-2 token standards, EVM compatibility, staking features, etc., and points out its community-driven and self-funded model, highlighting the platform's unique value and future potential.

The following is the original content (reorganized for readability):

$1.2 billion airdrop, 31% already airdropped. Fully unlocked at TGE. HYPE was initially priced at $3.90 upon launch, and then surged to a peak of $27 within two weeks. This value growth demonstrates why Hyperliquid's airdrop is considered one of the most successful and valuable in crypto history. So, how did Hyperliquid achieve this? Why is there so much attention? Let’s dive deeper.

The Team Behind HYPE

Hyperliquid Labs is led by Jeff Yan and Iliensinc, who are classmates from Harvard, dedicated to revolutionizing on-chain trading. Team members come from top institutions such as Caltech, MIT, Citadel, Hudson River Trading, and Nuro. In 2020, they started as market makers in the crypto market, and by 2022, due to dissatisfaction with outdated and cumbersome platforms, they shifted to the DeFi space.

Hyperliquid Labs has always remained fully self-funded, avoiding the influence of venture capital, focusing on one goal: to combine the efficiency of centralized exchanges with the transparency of DeFi.

Hyperliquid L1: Tailored for Performance

Hyperliquid's Layer 1 blockchain is not just another generic chain; it is specifically designed for high-performance perpetual contract order book exchanges, utilizing a custom consensus algorithm called HyperBFT, which fully on-chains the margin and matching engine state. What’s the result? Complete decentralization while maintaining high speed. Imagine Binance, but fully operating on-chain.

Why is this important:

• Ultra-fast response: Median latency of 0.2 seconds (99th percentile at 0.9 seconds).
• High throughput: Processing 200,000 transactions per second.
• Huge daily trading volume: Over $10 billion.

Redefining Token Standards: HIP-1 and HIP-2

Hyperliquid has launched HIP-1 and HIP-2, two revolutionary standards that maximize the utility and liquidity of tokens.

HIP-1: Native Token with Built-in Trading Functionality

HIP-1 allows users to create fungible tokens directly linked to the on-chain spot order book, elevating tokens to specialized financial instruments.

• Compared to ERC-20: HIP-1 adds trading functionality to the utility of tokens.
• Superior to SPL tokens: Unlike SPL tokens that rely on external DEX platforms or liquidity pools, HIP-1 tokens ensure instant tradability and high performance, tailored for financial assets.

HIP-2: Embedded Liquidity at Issuance

HIP-2 permanently binds liquidity to HIP-1 tokens, addressing liquidity issues from the moment of issuance.

• Innovative mechanism: Combines liquidity with token standards.
• Instant depth: Ensures a seamless trading experience unmatched by Ethereum liquidity pools.

Auctions: The Key to Successful Token Issuance

Hyperliquid's token deployment process utilizes a unique auction mechanism to determine gas fees. Each auction lasts 31 hours, starting at a high price, and if unsold, the price will linearly decrease to 10,000 USDC.

Recent Highlights

• GOD - 975,746.79
• CREAM - 546,967.35
• MON - 487,936.86

This means that after GOD closed at $975,746.79, the starting price for the next auction will be $1.95 million! These auctions are public and real-time statistics can be viewed on Hypurrscan.

Hypurr Fun: Designed for "Trench Hunters"

Hypurr Fun (HFUN) is a launch platform within the Hyperliquid ecosystem, tailored for "trench hunters"—crypto enthusiasts looking for high-potential tokens and wishing to participate at the earliest stages.

Key Features:

1. Telegram Bot Integration

Interact with Hypurr Fun through a dedicated Telegram bot.

Purchase tokens, monitor status, and receive alerts via Telegram.

Join the Prelaunch market and Hypurr channel for real-time updates on token issuance.

2. Token Creation and Issuance

Tokens are issued using a bonding curve mechanism similar to Pump.fun.

Promising tokens can automatically transition to Hyperliquid's spot market.

Once liquidity thresholds (e.g., 80% of tokens sold) are met, proceeds from sales will be used to ensure Hyperliquid listing.

3. Trench Mechanism

Pre-Launch Market: The trench is the trading phase for token pre-issuance, focusing on uncovering promising tokens.

Auction Participation: Funds from Hypurr Fun sales will be used for Hyperliquid's Dutch auction, aiming to ensure spot listing.

PVP.trade: Upcoming Airdrop

PVP.Trade is a Telegram bot integrated with the Hyperliquid ecosystem, designed for social and competitive trading. It is particularly appealing to airdrop hunters, as active trading now accumulates points that will influence future rewards.

Key Features:

1. Trading Bot

Execute trades directly through Telegram.

Supports leveraged and spot trading on the Hyperliquid platform.

2. Community Interaction

Social trading features allow users to view the positions of group members.

Facilitates collaboration and learning within the trading community.

3. Rewards and Points System

Earn points through trading, which will be used for upcoming token airdrops.

Incentivizes users to actively use the bot for trading.

HyBridge: Cross-Chain Asset Bridging

HyBridge is a cross-chain bridging tool designed to simplify the process of transferring assets into the Hyperliquid ecosystem, allowing you to more easily transfer tokens from multiple blockchains like Ethereum and Solana to Hyperliquid.

EVM: Expanding the Hyperliquid Ecosystem

Hyperliquid recently launched the Ethereum Virtual Machine (EVM) on its testnet, providing developers with the opportunity to build and experiment with Ethereum-compatible applications. This feature allows users to migrate existing EVM applications or create new frontends, facilitating greater participation in the Hyperliquid ecosystem. The EVM operates via a JSON-RPC interface, enabling seamless interaction with the blockchain.

In addition to the launch of the EVM, the Hyperliquid testnet now also supports staking features. This development allows users to participate in staking activities, contributing to network security while earning rewards in the process. As the platform continues to evolve, these features will play a crucial role in promoting community engagement and incentivizing user participation.

Developer Information:

• JSON-RPC Interface: https://api.hyperliquid-testnet.xyz/evm
• Chain ID: 998
• Try Hyperliquid Testnet Staking here
• Learn how to build trading bots using the Hyperliquid Python library

Learn how to deploy programmable wallets on Telegram here

For more information, please check the Hyperliquid documentation.

Conclusion: The Future of On-Chain Trading

Hyperliquid represents a significant breakthrough in the development of DeFi, combining the speed and efficiency typically found in centralized exchanges with the transparency and security of blockchain technology, creating a truly revolutionary product in the crypto space. The success of the platform is not only measured by metrics such as token price or daily trading volume but also by the organic and comprehensive ecosystem it has built.

From the specially designed L1 blockchain and innovative token standards (HIP-1 and HIP-2) to user-friendly interfaces like Hypurr Fun and PVP Trade, every component is meticulously crafted to enhance the trading experience. The recent addition of EVM compatibility and staking features on the testnet further demonstrates Hyperliquid's commitment to continuous innovation and ecosystem expansion.

What sets Hyperliquid apart is not only its technological achievements but also its community-first philosophy. By remaining self-funded and avoiding the interference of venture capital, the team has consistently focused on building a platform that truly serves user needs. As each element falls into place, Hyperliquid will fundamentally change the way we conduct on-chain trading. They are not just following the rules of cryptocurrency—they are rewriting them.

Special Thanks

Special thanks to the following key contributors in the Hyperliquid ecosystem:

• @chameleon_jeff
• @ThinkingUSD
• @kirbyongeo
• @NMTD8