Hyperliquid Unveils HIP-3 Upgrade: Users Can Now Launch Custom Perpetual Futures Exchanges

Hyperliquid (HYPE), a Layer-1 platform that has made notable strides in the cryptocurrency sector this year, has announced its latest upgrade, ￰0￱ upgrade marks a significant step toward decentralizing the perpetual futures listing process, allowing users and developers to deploy their own perpetual futures exchanges on the ￰1￱ To Expect From Hyperliquid’s Latest Upgrade The Hyperliquid protocol will facilitate builder-deployed perpetuals (HIP-3), with a minimum viable product (MVP) of this feature currently active on the testnet. Builder-deployed perpetuals will share many characteristics with HyperCore, the blockchain-based engine of Hyperliquid’s trading platform, including spot deployments and the allocation of new, high-performance on-chain order ￰2￱ terms of deployment logistics, gas fees in HYPE will be determined through a Dutch auction conducted every 31 hours, with a single auction covering all HIP-3 perpetual decentralized exchanges (DEXs).

For the mainnet, the staking requirement is set at 500,000 HYPE, although this requirement is anticipated to decrease as the infrastructure ￰3￱ amount staked above the current requirement can be withdrawn. Importantly, the staking requirement will be upheld for 30 days even after all of a deployer’s perpetual markets have been ￰4￱ deployer meeting the staking criterion can establish one perpetual DEX , with each DEX featuring independent margin, order books, and deployer ￰5￱ can use any quote asset as collateral for a DEX. However, assets that fail to satisfy the permissionless quote asset criteria will lose their status based on an on-chain validator vote, which would also disable any perpetual DEXs utilizing that asset as ￰6￱ Enhancements In terms of asset deployment, the first three assets introduced in any perpetual DEX will not require participation in the auction ￰7￱ additional assets will go through a Dutch auction with the same hyperparameters as the HIP-1 ￰8￱ Hyperliquid’s HIP-3 auction for additional perpetuals will be shared across all ￰9￱ enhancements are planned to improve the user experience regarding the reservation of assets for time-sensitive deployments.

Currently, only isolated margin mode is required, while cross-margin support is projected for a future ￰10￱ under HIP-3 will incorporate established sources of trading fee discounts, including staking discounts, referral rewards, and aligned collateral ￰11￱ the deployer’s perspective, the fee share is fixed at 50%. For users, fees will be double the usual rates applied to validator-operated perpetual markets , although the protocol will collect the same fee regardless of whether the trade occurs on an HIP-3 or a validator-operated ￰12￱ the time of writing, the platform’s native token, HYPE, is trading at around $39.84. This represents a significant 17% drop over the past week, in line with the wider crypto market crash on Friday, when the token fell as low as $20.8.

Featured image from DALL-E, chart from ￰13￱