Deep Dive into Hyperliquid – Talk of the Town! 

by | Dec 19, 2024 | Guides | 0 comments

What is Hyperliquid?

  • Hyperliquid is a decentralised exchange (DEX) built on Hyperliquid L1. Unlike many other DEXs that use Automated Market Makers (AMMs), Hyperliquid uses an order book system. This means that trades are matched based on specific buy and sell orders, allowing for more precise transactions. It combines the advantages of traditional exchanges with the security and transparency of decentralized finance (DeFi). Its TVL is $2.653b according to Defillama
  • It was founded by Jeff Yan and iliensinc in 2022. Hyperliquid has gained popularity, with over $512,091,989,397 total volume and more than 251,943 total users at the time of writing this article according to Hyperliquid state
Deep Dive into Hyperliquid - Talk of the Town! 

How is it different from other DEXs? 

  • Unlike many DEXs that use AMMs, Hyperliquid uses an order book. 
  • Hyperliquid operates on its own blockchain and according to their doc the chain supports 100k orders/second.
  • Hyperliquid allows for various trading strategies, including perpetual trading with 50x leverage 
Hyperliquid - Talk of the Town! 

The $HYPE token: 

The native token of Hyperliquid, $HYPE is used to

  • Governance: Holders of $HYPE can vote on important decisions about the platform’s future, such as upgrades and changes.
  • Staking Rewards: Users can stake their $HYPE tokens to help secure the network and earn rewards in return.
  • Transaction Fees: $HYPE is used to pay for transaction fees when trading on the platform.

Key features

50x leverage:

  • Hyperliquid allows traders to utilize leverage of up to 50x, enabling them to control larger positions than their actual investment. This feature is particularly attractive for traders looking to amplify their potential returns. However, it also increases risk, as losses can be magnified in volatile markets.

Vaults:

  • Hyperliquid’s vaults allow users to earn money by depositing funds into various trading strategies. When you deposit into a vault, you receive a share of the profits based on how well that vault performs. You can easily explore different vaults on the platform, where you will find important information like potential earnings and total funds in each vault
  • How to starts?
  • Go to valuts on platform
  • choose a vault, 
  • Enter the amount you want to invest, and click “Deposit.” 
  • You can track how your investments are doing and withdraw your funds whenever you want, although there are short lock-up periods for your tokens.

Sub-Accounts:

  • Hyperliquid supports sub-accounts, allowing users to create separate accounts within their main account for different trading strategies or asset management. 

Leaderboard:

  • The platform features a leaderboard that highlights top traders based on their performance. This encourages community engagement and healthy competition among users, motivating them to improve their trading skills.

Hyperliquid Ecosystem

  • It’s market cap is $10.12B. Currently there are 43 projects and the ecosystem is currently dominated by memecoins and Defi,  However, there are several projects in NFTs, GameFi, Bots and others. Explore these projects, you can check ecosystem page on CoinRank

Here are some ecosystem projects:

  1. Hypurrfun: The fastest telegram trading bot for Hyperliquid. Hypurr (PURR) is a meme token launched by the Hyperliquid team. Its FDV is $463.48M at the time of writing. 
  2. JEFF: It is a meme token. Its FDV is $25.71M at the time of writing. 
  3. HyperLend: HyperLend is a lending platform on Hyperliquid’s EVM blockchain
  4. HyperSwap: DEX and Liquidity Hub on Hyperliquid’s EVM blockchain
  5. HyperFun: HyperFun is a GambleFi deflationary token. Its FDV is $4.36M at the time of writing.

Growth Tactics of Hyperliquid

Community engagement and Airdrop:

  • It has conducted airdrop on November 29, 2024, distributing 310 million HYPE tokens to its community. There were no allocations for private investors, centralised exchanges, or market makers. 94,019 recipients received this airdrop according to ASXN data and the average drop was 2881.73 HYPE

Points program and Vaults:

  • The points program rewards users for their activity on the platform, encouraging more engagement which in turn could lead to growth. The Hyperliquidity Provider (HLP) vaults allow users to share in the platform’s profit.

Referral program:

  • The referral program allows users to create a referral code after trading $9,917.17. This encourages existing users to invite new traders to join this platform, helping to expand its user base while rewarding those who promote the platform. 

Bootstrapping 

  • Bootstrapping, which means it builds up its own resources and community support to attract funds without relying on outside investors. This is a self funded project.

How to get USDC on Arbitrum if you don’t have,

Centralized Exchange (CEX) Method

  • Buy USDC or USCT on CEX like Binance, Coinbase etc
  • Send on wallet you are using in a platform

Decentralized Method:

  • If you already have ETH in your wallet in Arbitrum chain then, connect to a DEX like Uniswap or Curve Finance on Arbitrum. Choose USDC as the token you want to receive and swap your existing tokens for USDC.
  • Say If you have SOL and want USDC then, Swap SOL to USDC on Solana using Raydium. Use Raydium or another compatible bridge to send USDC from Solana to Arbitrum. Once bridged, access the USDC in Metamask on Arbitrum.
  • But you will need Eth to pay gas fees if you have ETH on arbitrum then go for it and if you don’t have Eth then first get ETH on arbitrum 

How to deposit funds in Hyperliquid using Debridge

  • Visit the deBridge platform.
  • Connect your wallet
  • Choose USDC – Hyperliquid as the token you want to receive
  • In Pay choose the token that you have in your wallet
  • Connect the destination wallet that you have used in HL and confirm the trade.
  • You can check this demo

How to move funds back from Hyperliquid to your preferred network:

  1. All trades are settled in USDC or USDT.
  2. Currently, HL supports withdrawals of USDC to the Arbitrum network only.
  3. After sending funds back to your Arbitrum wallet address, you can use deBridge or any other preferred bridge to move your USDC to Solana, Ethereum, Base, or other networks.

let’s look into some of the criticisms:

  • “It is CEX pretending to be DEX” 
  • It is unregulated centralized exchange

let’s look into some of the praises:

It is an interesting project that offers features like an order book system and the ability to trade with high leverage. While it has attracted many users and generated significant trading volume, it’s important to be aware of some criticisms. Some people feel that this is more like a centralized exchange rather than a true decentralized platform.

As with any investment, there are risks, and it is essential to do your own research before making a decision. 

Also check this out, Bittensor-TAO: The infrastructure to decentralize AI and Machine Learning

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Disclaimer: At CoinTopper, we like to cover interesting products and share them with our community. This article is for educational purposes only and is not sponsored or endorsed by the project team.

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