Hyperliquid: Revolutionizing Decentralized Exchanges
In the world of digital finance, exchanges have evolved from basic peer-to-peer trading platforms to becoming key players in the global financial system. However, the centralization of these exchanges has raised concerns, as it places significant control in the hands of a few.
As the complexity of exchanges increases, centralization becomes more prominent. But now, a game-changing innovation is on the rise: Hyperliquid, a decentralized perpetual exchange running on its own Layer 1 blockchain (L1). It also offers a decentralized trading experience with remarkable speed and efficiency, rivaling centralized exchanges.
But how does it manage to pull off such impressive feats? Let’s dive deeper into the workings and explore the benefits it offers.
Hyperliquid’s Decentralized L1: High Performance and Speed
Hyperliquid’s main advantage lies in its proprietary Layer 1 blockchain, which allows it to deliver high throughput and performance without compromising on the user experience. By running on its own L1, it doesn’t rely on off-chain order books, enabling seamless transactions powered by Byzantine Fault Tolerance (BFT).
This consensus algorithm allows nodes to reach an agreement even in the presence of malicious actors, ensuring reliability and security. The tuned version of Tendermint that Hyperliquid uses ensures ultra-low latency, providing nearly instant trade settlements.
This approach gives Hyperliquid a performance edge, comparable to some of the top centralized exchanges in terms of transaction speed and liquidity. As of now, Hyperliquid L1 can handle 20K operations per second, and the team is working to increase this capacity for even faster settlement times in the future.
Key Features of Hyperliquid: A Closer Look
1. The Hyperliquid UI: Familiar Yet Revolutionary
Hyperliquid offers a user interface (UI) that closely mirrors centralized exchanges with an order book-style trading experience. Orders are matched based on price-time priority, ensuring consistent execution.
One of the key advantages is the margining system that works consistently, even with fluctuating oracle prices. Unlike other exchanges, you don’t need to sign each transaction manually while trading. It has integrated a ONE-click trading experience, making it incredibly easy for users to place orders without any hassle.
2. Supported Tokens
Hyperliquid supports a wide range of popular tokens including AVAX, BNB, BTC, CRV, ETH, FTM, MATIC, and SUI, among others.
In the future, users will be able to participate in the decentralized listing process, where they can stake native tokens and vote on which projects should be listed.
3. Competitive Fee Structure
During the first three months of its closed alpha, Hyperliquid waived all fees. Now, the exchange offers a competitive fee model with a flat 2.5 bps taker fee and a 0.2 bps maker rebate. This is particularly attractive for high-volume traders, as it matches the fee structure of centralized exchanges.
A standout feature is that all traders, regardless of volume, enjoy the same low fees, making Hyperliquid accessible to everyone. Referrers also receive 10% of the fees their referees pay.
4. Order Types on Hyperliquid
This decentralized perpetual exchange offers multiple order types, including:
- Market: Executed at the current market price
- Limit: Executed at the set limit price or better
- Stop Market: Executed when the price hits the set stop price
- Stop Limit: Limit order executed when the price hits the stop price
- Post Only: Adds an order to the book but doesn’t execute immediately
- Reduce Only: Reduces a current position rather than opening a new one
- Take Profit: Executed when the take-profit level is reached
- Stop Loss: Executed when the stop-loss level is reached
Basically all the convention trades that you look on a centralized crypto exchange, you can find it on HyperLiquid.
5. Margin and Leverage
Hyperliquid offers both cross-margin and isolated margin positions, with users able to leverage up to 50x. Cross-margin allows the use of collateral across multiple positions, while isolated margin enables more control over individual positions.
6. Vaults: Earning with Hyperliquid
Hyperliquid provides vaults where users can deposit assets and earn returns. These vaults serve various strategies, such as liquidations and market-making. Community members can also become Vault Leaders and earn a 10% profit share.
The vaults are designed to be accessible, with as little as 100 USDC required to start. Users can participate in liquidator vaults to earn a share of profits generated from liquidations.
How to Get Started on Hyperliquid: Bridging and Referrals
1. How to Bridge to Hyperliquid
To access Hyperliquid, users can use the Hyperliquid EVM bridge for interoperability with other chains. Currently, assets can be bridged from Arbitrum.
Simply connect your wallet, switch to the Arbitrum network, and follow the steps to transfer your assets to new chain.
2. Referral System and Rewards
Hyperliquid’s referral system allows users to earn 10% of the fees paid by their referees. This incentivizes both new and existing users to share the platform with others.
Read – How Transaction Fees Works
The Builders Behind: Chameleon Group
It was created by the Chameleon Group and Chameleon Trading. The core team includes experts from prestigious institutions like Harvard, MIT, and Caltech.
They are deeply committed to creating a high-performance decentralized exchange that provides a seamless user experience, which they felt was lacking in other decentralized platforms.
Hyperliquid Community: The Backbone of the Protocol
The success of any decentralized project lies in its community, and Hyperliquid has built an engaged and active one. The community not only includes developers and crypto enthusiasts but also people who ask hard questions, contributing to the growth and transparency of the protocol.
Conclusion: Why Hyperliquid is a Game-Changer
This Dex is poised to transform the decentralized exchange landscape by offering the best of both worlds: the speed and efficiency of centralized exchanges with the benefits of decentralization. With its innovative use of Layer 1 technology, strong community backing, and user-friendly features.
It is setting the stage for the future of perpetual exchanges. Whether you’re a seasoned trader or new to decentralized finance. It provides a powerful and intuitive platform to meet your trading needs.