Hyperliquid Perps

Derivatives

Hyperliquid is a decentralized perpetual exchange with best-in-class speed, liquidity, and price.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
What is Hyperliquid Perps?
What we like
Hyperliquid’s fully on-chain order book model offers CEX-level performance while maintaining transparency and decentralization.
What we like less
As a new Layer 1, Hyperliquid has yet to prove long-term stability, and validator-controlled oracles introduce potential attack vectors. Moreover, the Hyperliquid bridge is currently controlled an honest majority of only 4 validators.
What it means for you
Hyperliquid provides a high-speed, on-chain alternative to centralized exchanges, making it appealing for traders, liquidity providers, and DeFi power users.

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Information
Exploit/Hacks
Unknown
Info
  • Website
  • Token: HYPE
  • Tags: Derivatives
Key Metrics
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Zellic
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2024; maturity over nine months reduces technical risk as smart contracts are sufficiently battle-tested
  • Top 1% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized derivatives, such as LPs serving as the counterparty for all platform traders
Things to know about Hyperliquid Perps

What is Hyperliquid

Hyperliquid is a high-performance Layer 1 blockchain built to support a fully on-chain financial ecosystem with ultra-fast transactions and scalable order book infrastructure. Its flagship application is the Hyperliquid DEX, a fully on-chain perpetuals exchange that processes every order, trade, and liquidation transparently, with block finality in under a second. Hyperliquid’s custom-built HyperBFT consensus enables throughput of up to 100,000 orders per second, eliminating the need for off-chain order books. With native components for staking, liquidity provisioning, and order execution, Hyperliquid aims to be a one-stop shop for decentralized trading and market-making.

What are the risks

Hyperliquid runs on its own custom-built Layer 1, which has not undergone the same level of battle-testing as Ethereum or other established chains, introducing potential risks of network downtime or consensus failures. The protocol’s validator-run price oracles create potential vulnerabilities for oracle manipulation, which could impact liquidations and pricing accuracy. Additionally, market liquidity risks exist as Hyperliquid is a newer ecosystem, meaning low liquidity on certain assets could lead to higher slippage and volatility for traders.

How you make money on Hyperliquid

Users can earn on Hyperliquid through staking HYPE tokens, which secures the network and provides rewards proportional to delegated stake. Traders can profit from perpetual futures trading, while liquidity providers can earn from market-making strategies through the Hyperliquidity Provider (HLP) vault, which democratizes liquidation and trading profits typically reserved for exchanges. Additionally, users can deposit into vaults managed by experienced traders, gaining exposure to their trading strategies and sharing in their performance.

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