Hyperliquid New Upgrade Enables Users to Deploy Perps Market

Decentralized perpetuals exchange Hyperliquid crypto has announced that its users will be able to create perpetual futures markets. This follows its latest network upgrade, which enabled HIP-3.

The administrator of Hyperliquid Discord announced that the upgrade will take place on October 13. They wrote:

Hyperliquid Crypto Users Need to Stake 500,000 HYPE to Use HIP-3

HIP-3 is a protocol improvement that will allow anyone eligible to deploy perpetual futures on Hyperliquid. The DEX network implemented a minimum viable product (MVP) of the feature on its testnet in September.

According to the project documents, the deployed perpetual contracts will have their own independent parameters, order books, and margins. Deployers can also set a fee share of up to 50% and have the option to include additional fees.

It stated:

However, only users who stake up to 500,000 HYPE can deploy. At the current price, this is worth over $20 million, effectively meaning that only institutions and whales can use HIP-3.

Hyperliquid crypto claims this is essential to maintain the quality and protect users. Validators could slash the stake of deployers found to have engaged in malicious market operations.

Interestingly, the protocol stated that the required staking amount will decrease with time as its infrastructure matures.

Some institutional players have already disclosed plans to use HIP-3. DeFi protocol Ventuals announced plans to leverage HIP-3 to launch perpetual contracts tied to the valuation of private companies.

HYPE Token Sees Slight Gains as Market Recovers

Meanwhile, Hyperliquid crypto token HYPE is up almost 4% in the last 24 hours. The token, which had previously traded around $38 to $42 after the announcement, is now trading at around $41.

It is unclear whether the gains are due to its latest upgrade or part of the broader crypto market recovery. Still, it is a welcome development for HYPE, which has declined 16% over the past week and 25% in the last 30 days.

Despite the recent decline in HYPE tokens, the Hyperliquid protocol is attracting praise from several crypto users. It has grown to become the largest chain by volume, outperforming blockchains such as Solana and Ethereum.

Helius Labs CEO Mert Mumtaz recently stated that he is extremely bullish on Hyperliquid. He wrote:

Interestingly, the recent crypto liquidation has led some crypto users to criticize Hyperliquid after traders lost over a billion dollars on the DEX. Over 1,000 Hyperliquid accounts got fully wiped out, while 6,300 wallets are in the red.

However, Hyperliquid CEO Jeff Yan noted that centralized exchanges tend to underreport user liquidations. Thus, perp traders on centralized exchanges likely suffered similar if not bigger losses.

Yan also added that the Hyperliquid had 100% uptime and zero bad debt during the recent market volatility. By comparison, several centralized exchanges suffered downtime during the period, including Binance.

The world’s largest exchange experienced several anomalies during the period, leading to the depegging of some products.  To compensate users affected by the depeg, Binance recently distributed over $280 million.