Innovative Developments in Hyperliquid’s Platform: The Introduction of HIP-3
Hyperliquid, a prominent Layer-1 blockchain platform, has unveiled its new upgrade, HIP-3, furthering its influence in the cryptocurrency landscape. This upgrade represents a pivotal movement towards decentralizing the perpetual futures listing mechanism, empowering users and developers to launch their own perpetual futures exchanges within the platform’s ecosystem.
Anticipations Surrounding Hyperliquid’s HIP-3 Upgrade
The Hyperliquid protocol is set to introduce builder-deployed perpetuals through HIP-3, with the minimum viable product (MVP) of this feature already operational on the testnet. These builder-deployed perpetuals will inherit many attributes from HyperCore, Hyperliquid’s blockchain-driven trading engine, including spot deployments and the integration of new, high-efficiency on-chain order books.
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Regarding deployment logistics, gas fees in HYPE will be established via a Dutch auction occurring every 31 hours, encompassing all HIP-3 perpetual decentralized exchanges (DEXs). For the mainnet, the staking prerequisite is 500,000 HYPE, though it is expected to decrease as the system evolves. Any staked amount surpassing the current requirement is retractable.
Notably, the staking condition will persist for 30 days even after all perpetual markets created by a deployer have been halted. Deployers meeting the staking criteria can initiate one perpetual DEX, with each DEX boasting autonomous margin, order books, and deployer configurations.
Deployers have the flexibility to use any quote asset as collateral for a DEX. However, assets failing to meet the permissionless quote asset standards might lose their status following an on-chain validator vote, which could also deactivate any perpetual DEXs using such assets as collateral.
Planned Future Developments
In terms of asset deployment, the first three assets introduced in any perpetual DEX will bypass the auction process. Additional assets will undergo a Dutch auction with identical hyperparameters to the HIP-1 auction. This HIP-3 auction for additional perpetuals will be shared across all DEXs, with future improvements aimed at enhancing the user experience for asset reservation in time-sensitive deployments.
Currently, only isolated margin mode is required, with cross-margin support anticipated in future updates. Markets under HIP-3 will include established sources of trading fee discounts, such as staking discounts, referral rewards, and aligned collateral discounts.
From a deployer’s perspective, the fee share remains fixed at 50%. For users, fees will be twice the usual rates applied to validator-operated perpetual markets, although the protocol will collect the same fee irrespective of whether the trade occurs on an HIP-3 or a validator-operated platform.
Current Market Insights
As of the latest data, Hyperliquid’s native token, HYPE, is trading at approximately $39.84. This reflects a notable 17% decrease over the past week, aligning with the broader cryptocurrency market downturn on Friday, during which the token’s value dipped to as low as $20.8.
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