The Strong Get Stronger: Everything You Need to Know About the Hyperliquid Ecosystem

By: blockbeats|2024/12/20 17:30:02

Original Article Title: Everything You Need To Know About Hyperliquid
Original Article Author: TxnSheng, Crypto Kol
Original Article Translation: zhouzhou, BlockBeats

Editor's Note: This article introduces Hyperliquid (an innovative decentralized exchange platform), which combines the efficiency of centralized exchanges with the transparency of blockchain to provide a faster, more secure on-chain trading experience. It also highlights Hyperliquid's technical breakthroughs, such as a dedicated L1 blockchain, HIP-1 and HIP-2 token standards, EVM compatibility, staking functionality, etc., and points out its community-driven approach and self-funded model, emphasizing the platform's unique value and future potential.

The following is the original content (reorganized for better readability):

A $1.2 billion airdrop, with 31% already distributed. Fully unlocked at TGE. HYPE had an initial price of $3.90 at launch, skyrocketing thereafter to a peak of $27 within two weeks. The growth in value showcases why Hyperliquid's airdrop is considered one of the most successful and valuable in crypto history. So, how did Hyperliquid achieve this? Why such immense attention? Let's delve into it.

The Strong Get Stronger: Everything You Need to Know About the Hyperliquid Ecosystem

The Team Behind HYPE

Hyperliquid Labs is led by Jeff Yan and Iliensinc, Harvard alumni dedicated to innovating on-chain transactions. The team members hail from top institutions such as Caltech, MIT, Citadel, Hudson River Trading, and Nuro. Starting in 2020 as a crypto market maker, they pivoted to DeFi in 2022 due to dissatisfaction with outdated, clunky platforms.

Hyperliquid Labs has always been completely self-funded, avoiding the influence of venture capital, focusing on one goal: to combine the efficiency of centralized exchanges with the transparency of DeFi.

Hyperliquid L1: Custom-Built for Performance

Hyperliquid's Layer 1 blockchain is not just another general-purpose chain; it is specifically designed for high-performance perpetual contract order book exchanges, utilizing a custom consensus algorithm called HyperBFT that chains the margin and matching engine state entirely on-chain. The result? Full decentralization while maintaining high speed. Imagine Binance but running entirely on-chain.

Why This Is Important:

Ultra-Responsiveness: Median latency of 0.2 seconds (99th percentile at 0.9 seconds).

High Throughput: Processing 200,000 transactions per second.

Huge Daily Trading Volume: Over $100 billion.

Redefining Token Standards: HIP-1 and HIP-2

Hyperliquid has introduced HIP-1 and HIP-2, two revolutionary standards that maximize token utility and liquidity.

HIP-1: Native Tokens with Built-In Transactionality
HIP-1 allows users to create fungible tokens pegged directly to the on-chain spot order book, elevating tokens to specialized financial instruments.

Compared to ERC-20: HIP-1 adds transactional functionality to tokens.

Superior to SPL Tokens: Unlike SPL tokens that rely on external DEX platforms or liquidity pools, HIP-1 tokens ensure instant tradability and high performance, tailored for financial assets.

HIP-2: Embedding Liquidity at Issuance
HIP-2 permanently binds liquidity to HIP-1 tokens, solving the liquidity issue right from issuance.

Innovative Mechanism: Integrating liquidity with the token standard.

Instant Depth: Ensuring a seamless trading experience comparable to Ethereum liquidity pools.

-- Price

Auction: Key to Successful Token Issuance

Hyperliquid's token deployment process utilizes a unique auction mechanism to determine gas fees. Each auction lasts 31 hours, starting at a high price; if unsold, the price will linearly decrease to 10,000 USDC.

Recent Highlights

GOD - 975,746.79
CREAM - 546,967.35
MON - 487,936.86

This means that after GOD closes at $975,746.79, the starting price for the next round of auctions will be $1.95 million! These auctions are public and real-time stats can be viewed on Hypurrscan.

Hypurr Fun: Designed for “Trench Raiders”

Hypurr Fun (HFUN) is a launchpad within the Hyperliquid ecosystem designed for “trench raiders” — crypto enthusiasts looking for high-potential tokens and seeking early participation.

Key Features:

1. Telegram Bot Integration
Interact with Hypurr Fun via a dedicated Telegram bot.
Buy tokens on Telegram, monitor status, and receive alerts.
Join the Prelaunch market and Hypurr channel for real-time updates on token issuance.

2. Token Creation and Issuance
Token issuance follows a bonding curve mechanism similar to Pump.fun.
High-potential tokens can automatically transition to the Hyperliquid spot market.
Once the liquidity threshold is reached (e.g., 80% of tokens sold), the proceeds will be used to ensure eligibility for listing on Hyperliquid.

3. Trench Mechanism
Pre-Launch Market: The trench is the trading phase before token issuance, focusing on discovering high-potential tokens.
Auction Participation: Funds from Hypurr Fun sales will be used for a Dutch auction on Hyperliquid with the aim of securing a spot listing.

PVP.trade: Upcoming Airdrop

PVP.Trade is a Telegram bot integrated with the Hyperliquid ecosystem, designed for social and competitive trading. It particularly appeals to airdrop hunters, as active trading now accumulates points that will impact future rewards.

Main Features:

1. Trading Bot
Execute trades directly through Telegram.
Support leveraged and spot trading on the Hyperliquid platform.

2. Community Interaction
Social trading features allow users to view group members' positions.
Facilitate collaboration and learning within the trading community.

3. Rewards & Points System
Earn points through trading, which will be used for upcoming token airdrops.
Incentivize users to actively engage with the bot in trading.

HyBridge: Cross-Chain Asset Bridging

HyBridge is a cross-chain bridging tool designed to simplify the process of transferring assets into the Hyperliquid ecosystem, allowing you to seamlessly move tokens from blockchains like Ethereum, Solana, and more to Hyperliquid.

EVM: Expanding the Hyperliquid Ecosystem

Hyperliquid recently launched the Ethereum Virtual Machine (EVM) on its testnet, providing developers with the opportunity to build and experiment with Ethereum-compatible applications. This feature enables users to migrate existing EVM applications or create new front-ends, thereby encouraging more participation in the Hyperliquid ecosystem. The EVM operates through a JSON-RPC interface, allowing seamless interaction with the blockchain.

In addition to the EVM rollout, the Hyperliquid testnet now also supports staking. This development enables users to participate in staking activities, contribute to network security, and earn rewards in the process. As the platform continues to evolve, these features will play a crucial role in promoting community participation and incentivizing user engagement.

Developer Information:

·JSON-RPC Interface: https://api.hyperliquid-testnet.xyz/evm

·Chain ID: 998

·Try Hyperliquid Testnet Staking here
·Learn how to build a trading bot using the Hyperliquid Python library

Learn how to deploy a programmable wallet on Telegram here

For more information, please refer to the Hyperliquid documentation

Conclusion: The Future of On-Chain Transactions

Hyperliquid represents a significant breakthrough in DeFi development, combining the speed and efficiency usually associated with centralized exchanges with the transparency and security of blockchain technology, creating a truly revolutionary product in the crypto space. The platform's success is not only measured by token prices or daily trading volumes but also by the organic and comprehensive ecosystem it has built.

From a purpose-built L1 blockchain and innovative token standards (HIP-1 and HIP-2) to user-friendly interfaces like Hypurr Fun and PVP Trade, every component has been carefully designed to enhance the trading experience. The recent addition of EVM compatibility and staking features on the testnet further demonstrates Hyperliquid's commitment to continuous innovation and ecosystem expansion.

What sets Hyperliquid apart is not just its technical achievements but also its community-first approach. By maintaining self-funding and avoiding venture capital interference, the team has remained focused on building a platform that truly serves user needs. With each piece falling into place, Hyperliquid is set to completely transform how we engage in on-chain transactions. They are not just playing by the cryptocurrency rules—they are rewriting them.

Special Thanks
Special thanks to the following key contributors in the Hyperliquid ecosystem:
@chameleon_jeff
@ThinkingUSD
@kirbyongeo
@NMTD8
@crypto_adair

「Original Article Link」

On June 9, according to related disclosures, on-chain investigator ZachXBT posted an update on Humanity’s roughly $31 million security incident, saying that after further analyzing fund flows, he currently tends to believe the project team was not involved in an “inside job” or a self-staged attack. According to him, the official explanation about the private key leak was broadly accurate, but before the token unlock, the price of H had been artificially pushed higher, and the hacker later took advantage of that market environment; therefore, the private key leak and the earlier abnormal price pumping should be regarded as two separate and independent events. This reframing has shifted the market’s understanding of the nature of the incident. Earlier discussion around Humanity had focused on whether the team directly participated in the attack or used the security incident to cover up internal operations. ZachXBT’s latest remarks shift the focus from “whether it was self-theft” to “whether there were pre-unlock market structure issues.” He also questioned whether the team may have.

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In the fast-moving digital asset ecosystem, derivatives platforms face an extreme architectural test. High-leverage futures markets demand more than just standard security—they require absolute operational precision, zero-latency matching engines, and ironclad structural scalability, all while navigating intense market volatility.

As global platforms scale to meet these demands, the industry is shifting away from rigid, monolithic setups toward a more agile, "decoupled" infrastructure philosophy.

The Blueprint for High-Volume Copy Trading

For elite global exchanges like WEEX (founded in 2018), this architectural choice becomes critical when scaling high-volume retail features like social copy trading. When thousands of users automatically mirror the real-time strategies of elite traders simultaneously, it triggers sudden, monumental spikes in concurrent transactional volume.

To prevent execution latency or settlement bottlenecks during these peak volatility events, a platform's primary engine must remain entirely dedicated to risk management, copy-trade synchronization, and order matching.

The Architectural Rule: New-generation platforms must separate front-end user execution engines from heavy backend infrastructural overhead to eliminate operational friction.

By separating these layers, platforms can maintain complete sovereignty over their trading environments and user experiences while strategically aligning with institutional-grade infrastructure ecosystems. This strategic framework allows modern exchanges to leverage advanced Digital Asset Custody infrastructure such as Cobo’s behind the scenes, ensuring that backend wallet management scales elastically alongside trading spikes.

Capitalizing on Market Momentum and 400× Leverage

In a derivatives arena where platforms offer up to 400× leverage on perpetual contracts, capital efficiency and market agility are core business metrics. To capture market momentum, an exchange needs the ability to rapidly expand its asset offerings, supporting everything from legacy crypto assets to sudden, trending altcoins across a massive library of trading pairs.

Adopting a flexible, scalable Wallet-as-a-Service (WaaS) solution such as Cobo’s could completely rewrite the development timeline for high-growth exchanges. Instead of spending months of engineering capital building out custom backend wallet architectures for every new blockchain network, platforms can deploy localized infrastructure in days.

This agility allows platforms to instantly scale their listings to over a thousand trading pairs without compromising security or delaying time-to-market. It mirrors the exact operational advantages seen during high-velocity market events, similar to how advanced wallet infrastructure empowers platforms during sudden asset surges; allowing exchanges to pass that speed and liquidity directly to their global user base.

A Mature Foundation for Growth

The synergy between trusted infrastructure ecosystems and global trading platforms represents the natural evolution of a maturing crypto market. As WEEX continues to scale its global spot and derivatives offerings for over 6 million users, adopting robust backend paradigms proves that platforms no longer have to compromise between cutting-edge trading velocity and uncompromised structural security.

ZachXBT: Humanity private key leak and abnormal surge in H token should be viewed separately