Hyperliquid is a proprietary layer 1 (L1) blockchain designed to combine the high-performance trading experience of a centralized exchange (CEX) with the transparency and self-custody values of decentralized finance (DeFi). Initially, user assets were introduced through Arbitrum, an Ethereum-based layer 2 solution, but to overcome performance limitations and achieve vertical integration, we built our own L1 mainnet. Hyperliquid is not simply an exchange app, but is itself an infrastructure specialized in finance and aims to implement all financial activities on-chain, including perpetual futures, spot trading, lending, and stablecoin issuance.
Investment View
Maintaining neutrality: Its identity as a ‘neutral financial infrastructure’ without VC interference serves as a basis for trust for institutional investors and large builders to place assets on Hyperliquid in the long term. Progressive decentralization: Currently, a small number of core validators are leading the network, but system risk is being distributed through dispersion of staking volume and gradual expansion of validator slots. However, as a financial specialty chain, the possibility of being targeted by regulatory authorities (AML/KYC issues) and smart contract security incidents that may occur during the HyperEVM expansion process are key risks that require continuous management.
Hyperliquid, the core project of Hyper Foundation, presents a vision of a “fully on-chain open financial system” and takes a structure that combines its own L1, HyperBFT consensus, HyperCore order book, and HyperEVM. According to the official document, all orders, cancellations, transactions, and clearing of HyperCore are processed on-chain, and HyperCore currently supports 200k orders/sec. (Hyperliquid Docs) What differentiates Hyperliquid is that it is not a simple DEX but an “L1 with exchange functions built into the chain execution environment”.
Investment View
$$ px i \= round(px {i-1} \times 1.003) $$ Each level interval is approximately 0.3%. The strategy is updated at least every 3 seconds, which automatically forms the initial bid/ask of the new HIP-1 token. Risk: If the HyperEVM app ecosystem fails to create real demand, the market may re-evaluate Hyperliquid as only a “highly profitable perp DEX”. Second, does HIP-3 safely expand the builder-deployed derivatives market?
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