Hyperliquid Review

Hyperliquid Review

Step into the future of trading with Hyperliquid, the fastest growing perpetual futures trading platform in DeFi.

Summary: Hyperliquid is a top decentralized futures exchange, outpacing DYDX with over $450 million in daily volume. It operates on the Hyperliquid L1 blockchain, ensuring quick, transparent, and efficient trading akin to centralized exchanges. The platform caters to a diverse trading audience with various assets, competitive fees, and up to 50x leverage for major cryptocurrencies.

Key features include advanced, user-friendly trading tools, maker fee rebates, deep liquidity and the broadest selection of crypto assets out of any perpetual futures DEX. Additionally, Hyperliquid's points program leading to a token airdrop underscores its commitment to community engagement and transparent governance.

Hyperliquid Overview
5.0 out of 5.0 by Datawallet
Hyperliquid is a leading decentralized futures exchange known for its high trading volume, operating on its own L1 blockchain to offer fast, transparent, and efficient cryptocurrency trading.
Daily Traded Volume
Averages over $400M in 24 hour volume.
Supported Assets
BTC, ETH, SOL, TIA, INJ, SEI, SUI & 100 more.
Key Features
Zero gas fees, 50x leverage and fully on-chain.

Get started with Hyperliquid and get an additional 5% off trading fees.

Content Guide
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What is Hyperliquid?

Hyperliquid has emerged as a leading decentralized perpetual futures exchange, surpassing DYDX as the most popular perpetuals DEX with a daily trade volume exceeding $450 million. This platform distinguishes itself by operating entirely on its bespoke Hyperliquid L1 blockchain, utilizing Tendermint for fast and reliable consensus and achieving under one-second block latency. This technology ensures a trading experience that is not only transparent and efficient but also rivals centralized exchanges (CEXs) in performance.

Aimed at democratizing cryptocurrency trading, Hyperliquid prioritizes transparency, affordability, and high-quality execution. It appeals to a wide range of traders by promoting self-custody and open market access, featuring user-friendly interfaces, competitive fees, and adaptable leverage options suitable for various trading strategies.

In its decentralized framework, Hyperliquid offers advanced trading functionalities. It supports intricate order types like take-profit and stop-loss, seamlessly integrated with TradingView for strategic trading. With a capacity of handling up to 20,000 orders per second and providing instant transaction finality, Hyperliquid stands as a robust platform for crypto futures trading, effectively marrying the efficiency of CEXs with the advantages of decentralization.

What is Hyperliquid?

Hyperliquid Supported Assets

Hyperliquid supports a wide range of cryptocurrencies, including major ones like BTC and ETH, and numerous altcoins such as AAVE, APE, ATOM, AVAX, BNB, DOT, LINK, MATIC, SOL, TIA, TRX, and XRP. The platform's extensive asset list encompasses over a hundred cryptocurrencies, ensuring a diverse trading experience.

Leverage options on Hyperliquid vary by asset. High-profile cryptocurrencies like BTC and ETH offer up to 50x leverage. A significant selection of other assets, including AAVE, APE, ATOM, AVAX, and many more, provide up to 20x leverage. Assets like ACE, BADGER, BIGTIME, and others allow for up to 10x leverage, while a group including ARK, BLZ, BNT, and similar assets offer up to 5x. Finally, cryptocurrencies like BANANA, CANTO, CYBER, and more have a maximum leverage of up to 3x.

Hyperliquid Funding Rates

Hyperliquid employs funding rates for its crypto perpetual contracts to ensure the contract price closely tracks the underlying asset's spot price. Here's a simple overview:

  • Funding is calculated and paid hourly, based on an 8-hour rate.
  • The formula for funding rate is: Funding Rate (F) = Average Premium Index (P) + clamp (interest rate - Premium Index (P), -0.0005, 0.0005).
  • Oracle prices derive from the weighted median of centralized exchange (CEX) spot prices.
  • Funding rates are capped at a maximum of 4% per hour.
  • Payments are calculated using the position size, oracle price, and funding rate.

For example, if the perpetual contract price is $10,100 and the spot price is $10,000, this results in a 1% premium index. For a long position of 10 contracts (1 BTC each), the premium would be 0.01 or 1%. The clamped interest rate difference becomes -0.05%, leading to a funding rate of 0.97%.

Hyperliquid Fees

Hyperliquid introduced a fee structure following its initial no-fee period during the mainnet closed alpha. This structure is designed to support the platform's ecosystem and promote sustainable operations:

  • Taker Fees: Traders removing liquidity (takers) incur a 2.5 basis points (bps) fee, aligning with rates for high-volume tiers on other exchanges.
  • Maker Rebates: Liquidity providers (makers) earn a rebate of 0.2 bps, automatically added to their trading wallet after each trade.
  • Referral Rewards: Referrers receive 10% of their referees' taker fees, or 0.25 bps, accessible from the Referrals page.
  • Fee Distribution: A significant portion of the fees, about 2.05 bps, supports the insurance fund and Hyperliquid's protocol or token (HLP), focusing on community benefits.
  • Planned Gas Fees: To address DDoS and L1 state growth concerns, future gas fees will be minimized, leveraging Hyperliquid's specialized L1 structure.

Hyperliquid's fee policy ensures a fair, competitive, and community-oriented trading environment, promoting the platform's long-term sustainability.

Hyperliquid Airdrop

Hyperliquid's points program, which began on November 1 at 00:00 UTC, is set to culminate in a token airdrop for its governance token, designed to acknowledge and reward users for contributing to the protocol's success. Key aspects of this program include:

  • Weekly Distribution: For six months, Hyperliquid will allocate 1,000,000 points weekly to active users, with the first distribution having taken place on November 9.
  • Affiliate Incentives: Affiliates gain additional benefits, earning one point for every four points their referred users earn, fostering community engagement and growth.
  • Regular Updates and Schedule: The criteria for earning points are updated regularly. Points are calculated based on activity up to each Wednesday at 00:00 UTC, with distributions on Thursdays.
  • Protocol's Discretion: Hyperliquid reserves the right to modify prior point distributions.
  • Exclusive Snapshot for Alpha Users: A special snapshot for an additional points drop was taken on October 31 at 00:00 UTC, targeting closed alpha users.

This points system is a strategic move by Hyperliquid, not just to reward user engagement but also to pave the way for the distribution of its governance token through an airdrop, thereby enhancing user investment in the platform's governance and future direction.

Bottom Line

In summary, Hyperliquid stands out as a pivotal player in decentralized finance, skillfully blending the benefits of centralized exchanges with blockchain's transparency and security. Its Hyperliquid L1 blockchain and Tendermint consensus enable fast, efficient transactions, positioning it as a strong contender in crypto futures trading

The platform's diverse asset offerings and adjustable leverage options cater to various trading needs. Additionally, Hyperliquid's strategic fee structure and innovative points program, culminating in a governance token airdrop, underscore its dedication to a community-centric ecosystem.

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