A Detailed Explanation of the Hyperliquid Ecosystem
In addition to the wealth myth of airdrops, several well-known projects have consecutively auctioned HIP-1 tokens for $300,000 to $500,000 to launch on Hyperliquid, attracting widespread attention in the CT circle. Therefore, I want to gain a deeper understanding of its full picture, which is referred to as the "on-chain Binance."Author: hugo
Hyperliquid launched in 2023, focusing on an on-chain derivatives trading platform that offers a more decentralized exchange option. Jeff mentioned in an interview that the goal is to create a platform where all finance can happen. “Hyperliquid Founder: How to Win in Crypto (by Building for Users, Not VCs)”
On 2024/11/29, a total of $1.2 billion worth of $HYPE tokens will be airdropped to early users, with the price of $HYPE at $3.9 at that time, rising to a peak of $34 on 12/24, resulting in an FDV market cap of $34 billion, equivalent to one-fourth of BNB's market cap.
It is worth mentioning that this historically highest-value airdrop team stated that they did not conduct any fundraising, and the discussion around the token before its issuance stands in stark contrast to its accumulated trading volume and revenue.
In addition to the wealth myth of the airdrop, several well-known projects have successively auctioned the HIP-1 token for $300,000 to $500,000 to gain the opportunity to list on Hyperliquid, attracting widespread attention in the CT circle. Therefore, there is a desire to gain a deeper understanding of what is referred to as the "on-chain Binance."
Hyperliquid Team Background
The document introduces that the Hyperliquid team was founded by Jeff and iliensinc, with only Jeff publicly attending interviews and posting comments on X. Jeffrey Yan graduated from Harvard with a degree in mathematics, previously worked as a software engineer at Google, and was responsible for developing trading algorithms at the Wall Street trading firm Hudson River.
In 2020, he established the quantitative trading company Chameleon Trading, until 2022 when he realized that the team had reached the limits of high-frequency market making and began exploring opportunities in DeFi.
Jeff stated that after the FTX collapse, people suddenly had real reasons to distrust centralized exchanges and began to think about what could be done with existing resources. The idea of establishing Hyperliquid began to take shape, and the official Medium published "Introducing Hyperliquid: your new home to trade perps on DeFi," which aims to build an on-chain Perp DEX based on Tendermint.
In April 2023, it was announced that Hyperliquid L1 would be established because, during the investigation of existing L1 solutions, it was found that none could meet the low latency and TPS requirements needed to establish an on-chain exchange. Thus, it was decided to create an L1 focused on high-performance derivatives trading, initially concentrating on optimizing efficiency and throughput.
How to Use Hyperliquid
Hyperliquid primarily offers derivatives and spot trading. Users can deposit USDC on Arbitrum for trading, with fees and gas costs paid in USDC. Users can also deposit USDC into the HLP Vault to earn yields or stake HYPE to receive HYPE from validator nodes. All operations are covered in the instructional video.
How to Stake HYPE with HyperCollective
The Hyperliquid Foundation announced that HYPE Staking will officially open on 2025/12/30, with 16 validators joining. Among them, the Nansen x HypurCollective node has accumulated 30 million HYPE, with a total value of $600 million staked in that node, making it the largest unofficial validator node (the top 5 is Hyper Foundation).
Prepare USDC on Arbitrum
Deposit into Hyperliquid
Transfer USDC to Spot Account
Buy HYPE spot
Go to Stake page
Transfer HYPE tokens to Staking Account
Input staking amount
Select Nansen x HypurCollective as validator
Hyperliquid Ecosystem Projects
The HYPE ecosystem represents tokens of memes and community culture: VAPOR, FARM, PURR, HCR…
HypurrFun
The Pump.fun of the Hype ecosystem requires participation through the Hypurr Fun bot, where users can check the projects being raised in the Telegram group or on the hypurr.fun website. Users participate using USDC, and if the cumulative amount in the current pool exceeds 65% of the current auction price, a new token will be bid to participate in the auction, launching on Hyperliquid.
Since Hyperliquid currently does not have smart contracts, the implementation of the Bonding Curve is done through off-chain calculations. Users send USDC to a designated address for purchase, and off-chain calculates the current token balance based on the Bonding Curve. After a successful auction, liquidity is created on Hyperliquid and allocated to participating addresses.
Recommended reading is the information organized by @chrischang43, as publicly available mechanism information is very hard to find.
Recently, the HCR, which focuses on technical analysis, has gained some attention and has interacted with Aixbtx on Twitter, although its replies tend to be lengthy and uninteresting, which the market does not seem to favor.
Hypurr Fun: https://app.hypurr.fun/
Hypur Fun Bot: https://t.me/HypurrFunBot?start=ref_98ca8973
Hyperlend
The first native lending protocol of the Hype ecosystem, in addition to basic functions, features support for HLP Vault as collateral, unlocking opportunities for leveraged yields. Users can supply HLP as collateral, borrow other stablecoins, and then deposit them back into the HLP Vault to cycle for leveraged yields. Currently, participation is available on the testnet.
Website: https://hyperlend.finance/
Thunderhead (stHYPE)
Focusing on liquid staking, Thunderhead supports staking not only HYPE but also Ethereum, AO, Arch, and other networks. Currently, the Hyperliquid testnet version is only available to invited users, who stake HYPE to receive stHYPE tokens.
Rootdata shows that the team was established in 2022, has not announced any fundraising, but the website indicates support from capital and node operators such as 1kx, Rocktree, and Piertwo.
PvP.trade
The trading bot of the Hyperliquid ecosystem, using the PvP Bot to trade spot and futures on Hyperliquid, allows users to accumulate PVP points. This project has already auctioned the $PVP token ticker for $200,000 on 12/7, thus there are expectations for an airdrop.
Users can join clans and accumulate points based on trading volume, but many have reported that point distribution is not transparent, as the total amount is fixed daily, and different trading pairs earn different points, requiring collective research to brush up on airdrop participation, which has certain entry thresholds.
Kinetiq (LST)
A liquid staking protocol built on HYPE, supported by a team from @anthiasxyz, a consulting company focused on risk design and system management, which has collaborated with ecosystems and clients from Arbitrum, Solana, Compound, etc.
Website: https://kinetiq.xyz/
Felix Protocol
The native stablecoin protocol of the Hype ecosystem, allowing users to deposit HYPE, PURR, and other assets to mint stablecoin feUSD. The testnet is already live, with a simple UI design and easy operation.
Hypur Collective
The Hypur ecosystem is initiated by community members, compiling current Hype ecosystem projects and serving as the most important entry point for new projects and users entering the ecosystem. It has organized the core circle of HypurCo Members.
In collaboration with Nansen, it became one of the first 16 node validators for Hyperliquid, having accumulated 30 million HYPE, with a total value of approximately $600 million staked, making it the largest staking node after the official ones.
HypurScan
The block explorer of the Hype ecosystem, which tracks protocol revenue, real-time transactions, and auction information; currently the most mainstream data query site for the Hyper ecosystem, mentioned in the official 2024 In Review.
- Website: https://hypurrscan.io/dashboard
Hypur/active
An investment DAO initiated by the Hyperliquid community, created by @laurentzeimes and @fiege_max, which claims to have no connection with the core members of Hype but has been mentioned in the Hyperliquid annual review, suggesting it has already made some achievements and influence in the ecosystem, though it has not been deeply explored.
HyBridge
Hyperliquid's official channels only accept USDT and USDC deposits from Arbitrum. Hybridge supports cross-chain transfers of almost all assets from seven chains including Ethereum, BASE, and Solana to Hyperliquid, and can also directly specify the receiving assets as HYPE, USDC, FUN, and other ecosystem tokens. The documentation mentions that the second season of the points activity is currently running.
Website: https://hybridge.xyz
HyBio - NFT
HyBio is a currently popular NFT collection in the ecosystem, with the earliest related tweet being on 2025/1/8, seemingly created by @8tejj8. The team announced the participation method on 1/8, allowing users to mint on BASE, with a whitelist and public sale; the total supply is 5,500, with 155 held by the team and 400 contributed to the treasury.
Rariable's public tweet mentioned that the HyBio NFT minting price was 0.025 ETH, with a peak price of 0.39 ETH; the transaction volume on Opensea reached 506 ETH, and it will be revealed on 1/14.
How to Issue Tokens on Hyperliquid?
On Hype, the main format for tokens is HIP-1, which must be obtained through public auctions held every 31 hours. The latest auction information can be found on AXSN Data or Hypurscan data, with most recent projects (1/10) being in the range of $300,000.
How to Get the Latest News from the Hyperliquid Ecosystem
Hypur Collective is community-initiated, with a HypurCo member limited to ecosystem partners who can join. Projects can submit a form to apply; currently, HypurCo and Nansen are running a joint node, and it is recommended to choose this node for staking, as there may be airdrop surprises in the future.
AXSN, as a node validator, provides data analysis tools and will periodically share Hyperliquid data. Their publication "The Hyperliquid Issue #1" released on 1/3 covers a wide range; HypurCollective's Weekly Update provides a good understanding of voices and updates from the community and ecosystem.
