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Analysis of Hyperliquid: Decentralized Exchange Functioning on Homegrown Layer 1 Infrastructure

A Decentralized Exchange (DEX) for derivatives offers users the ability to take long or short positions on multiple assets, with a maximum leverage of 50 times. This exchange functions on its own layer 1 network, named Hyperliquid.

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A Derivatives Exchange (DEX) on Hyperliquid's Layer 1 offers users the ability to take long or...
A Derivatives Exchange (DEX) on Hyperliquid's Layer 1 offers users the ability to take long or short positions on multiple assets, with a maximum leverage of 50 times.

Derivatives DEX: Hyperliquid Review

Analysis of Hyperliquid: Decentralized Exchange Functioning on Homegrown Layer 1 Infrastructure

Welcome to our comprehensive review of Hyperliquid, a derivatives Decentralized Exchange (DEX) built on its own Layer 1 blockchain, Hyperliquid L1.

What is Hyperliquid?

Hyperliquid is a unique DEX that allows users to trade various assets with up to 50x leverage, offering an optimal experience for derivatives trading. The platform operates on its proprietary Hyperliquid L1 blockchain, designed for efficient derivatives trading. Unlike other derivatives DEXs, Hyperliquid L1 eliminates dependencies on centralized entities by employing an on-chain, fully operational order-book mechanism [1].

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Product

Hyperliquid L1

Hyperliquid L1 is a customized, high-performance Layer 1 blockchain that is based on Cosmos' Tendermint toolkit and runs on the Proof of Stake consensus mechanism. It introduces an on-chain order-book mechanism and is optimized for derivatives DEXs, providing better efficiency and throughput than other Layer 1 blockchains like Ethereum, BNB Chain, Solana, and more [1].

Perpetual DEX

The Perpetual DEX on Hyperliquid provides a range of order types, including market, limit, stop market, stop limit, scale, and TWAP orders. Tokens are categorized based on their industry focus, such as AI, Layer 1, or DeFi, while a Pre-launch section showcases tokens not yet listed on any Centralized Exchange (CEX) or DEX [1].

Spot Trading and Vault

Hyperliquid supports spot trading for various assets and utilizes two permissionless token standards: HIP-1 for spot trading, which allows for asset movement between Hyperliquid L1 and other chains, and HIP-2 for permanent liquidity [1]. The Vault functions as a liquidity pool that users can deposit funds into for automated trading on set orders, similar to Copy Trading on CEX exchanges.

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Opportunities from the HyperLiquid platform

Hyperliquid recently introduced a point award program, which runs from November 1, 2023, to May 1, 2024, allocating points based on trading and liquidity provision activity. Users can earn points to participate in airdrops and compete for retroactive rewards offered by the exchange [1].

Tokenomics (Under Development)

Currently, no information about Hyperliquid's token launch is available. We will update this information as soon as it becomes available.

Team, Investors and Partners

Hyperliquid Labs, led by Jeff and Iliensinc, a Harvard University classmates duo, develops the platform. The team boasts rich experience from tech and finance companies such as Airtable, Citadel, Hudson River Trading, and Nuro [1]. The project has partners like Rage Trade, Mizar, Hummingbot, and Okto.

Roadmap (Under Development)

Hyperliquid has not announced its future development roadmap as of now. We will update the information as soon as it is made available by the project.

Conclusion

Hyperliquid offers a decentralized derivatives trading platform with a focus on user-friendly interfaces, low costs, and high profit potential. It invites users to explore the platform, find new tools, and compete for retroactive rewards offered by the exchange.

FAQs

  1. What does Hyperliquid aim to solve?

Hyperliquid is a decentralized exchange striving to resolve liquidity fragmentation issues by offering seamless trading with low fees and fast execution times.

  1. What is the native token for Hyperliquid?

As of now, no information about Hyperliquid's native token is available. We will update the information once it is made public.

  1. Does Hyperliquid offer staking options?

We are currently unaware of any staking options available on the Hyperliquid platform. However, we will update the information as soon as it becomes available.

  1. Hyperliquid leverages technology to provide a derivatives DEX on its custom Layer 1 blockchain, offering efficient trading with up to 50x leverage.
  2. The platform's Perpetual DEX supports various order types, including market, limit, and TWAP orders, and features tokens categorized by industry focus, such as AI, Layer 1, or DeFi.
  3. In addition to trading, Hyperliquid offers the Vault, a liquidity pool for automated trading, operating on the permissionless token standards HIP-1 and HIP-2.
  4. In an effort to engage users, Hyperliquid recently introduced a point award program, running from November 1, 2023, to May 1, 2024, allowing participants to earn points for trading and liquidity provision activities, and compete for airdrops and retroactive rewards.

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