Hyperliquid. The most promising perpetual DEX, with CEX advantages.

What is Hyperliquid ?

Hyperliquid is an order book based perpetual futures trading dApp.

A mouthful, but basically; it is a fully on-chain trading platform with a CEX-type order matching system that sets Hyperliquid apart from other on-chain trade executions like AMM’s, RFQ, and oracle based solutions.

TradFi features.

• Advanced orders: Stop Loss & Take Profit order, Limit & Market orders, Cross & Isolated Margin, Reduce Only orders, Copy trading.
• Up to 50x leverage on 20+ underlying assets.
• Funding rate distributed every 1hr.
• Hedged positions (Upcoming). Simultaneously open Long and Short positions on the same token; thus, with a delta-neutral strategy, earn the funding rate APR between 10% — 30%.

DeFi features.

• Blockchain transparency, speed, cost, security, and anonymity.
• ERC-20 token as collateral (USDC).
• Full ownership of funds, and instant withdrawal.

Why use an order book matching system on-chain ?

Avoid front-running and MEV attacks, Slippage, Impermanent loss, slow transaction confirmations, and high gas fees implicit in all DeFi protocols.

Traders have low fees, fast execution, and reduced wallet approvals. All whilst enjoying up to 50x leverage and full on-chain transparency.

Liquidity Providers now have the benefits of TradFi market making, in Web3. No more Impermanent loss!

How is all this handled on-chain ?

All trading orders are processed and matched in The Hyperliquid L1.

The layer 1 blockchain built on Tendermint, a BFT consensus mechanism which allows the chain to reach a <1 second block latency and process over 20,000 orders / second.

The Hyperliquid L1 is custom-built and completly dedicated to smoothly running the order book DEX. No general-purpose smart contracts can run nor be deployed in it.

You can transparently check orders/transactions in the dApp’s interface:

All collateral is handled in USDC.

To deposit USDC into the Hyperliquid protocol, you must deposit tokens through Arbitrum One. After the deposit, the protocol will account for an equivalent equity of USD in Hyperliquid L1, and you’ll be ready to trade.

Note: The Hyperliquid protocol still supports USDC.e (bridged USDC from Ethereum), not Circle’s newly launched native USDC token in Arbitrum.

Vaults.

A.K.A. “strategy pools”, they are simple yet powerful primitive built into The Hyperliquid L1 chain. By buying into a vault, you are essentially copying the trades in the vault and sharing it’s P&L.

Vaults can be used with market making strategies similar to how LPs provide liquidity in DEXs. The protocol’s main vault generates interest through multiple market making strategies, liquidations, and accrues platform fees.

Team.

With $7.1Bn in all-time trading volume, across 11.5k Web3 traders, Hyperliquid is founded, and self-funded, by Harvard grads Jeff and Iliensinc, with previous experience in top tier high-frequency trading firms Citadel and HRT.

Dev center.

• 🐍 Python SDK.
• 🦀 Rust SDK.
• API and WSS Docs: https://hyperliquid.gitbook.io/hyperliquid-docs/

Relevant Links.

• Website: https://hyperliquid.xyz/
• GitHub: https://github.com/hyperliquid-dex
• Twitter: https://twitter.com/HyperliquidX