Hyperliquid
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Hyperliquid is a decentralized perpetual futures trading platform (DEX) designed to offer high-performance derivatives trading directly on-chain.
Launched in 2023, it aims to solve the problem of slow, fragmented, and costly decentralized trading by offering a fast, fully on-chain order book with a centralized-exchange-like experience.
In simple terms:
Think of Hyperliquid as a high-speed crypto trading exchange that runs on the blockchain, allowing users to trade perpetual futures without giving up custody of their funds.
Key Features
Here are the main features that make Hyperliquid stand out:
On-Chain Order Book – Trades are executed transparently on-chain instead of using AMMs.
High-Speed Execution – Designed to feel similar to centralized exchanges.
Self-Custody Trading – Users keep control of their funds at all times.
Low Fees – Competitive trading fees compared to other on-chain derivatives platforms.
a. Technology / Architecture
Hyperliquid operates on its own custom Layer 1 blockchain, purpose-built for high-performance trading.The chain is optimized for low latency, fast block times, and high transaction throughput to support real-time trading.
b. How Users Interact With It
Users interact with Hyperliquid by:
Connecting a crypto wallet
Depositing collateral
Placing long or short perpetual trades
Managing positions and risk directly on-chain
c. Core System / Model
Hyperliquid uses:
Order book–based perpetual futures
On-chain matching and settlement
Margin and liquidation systems similar to traditional derivatives exchanges
This design differs from AMM-based perpetual DEXs.
Who is Project for?
Active traders
Advanced DeFi users
Users who want CEX-like performance with self-custody
Traders seeking on-chain transparency
It may not be ideal for complete beginners.
Comparison with Similar Project
dYdX vs Hyperliquid
dYdX uses an app-chain and off-chain order book components
Hyperliquid emphasizes fully on-chain order book execution
GMX vs Hyperliquid
GMX uses an AMM-based model
Hyperliquid uses an order book–based model
How to use the Project?
Create a compatible crypto wallet
Connect your wallet to Hyperliquid
Deposit collateral
Open and manage perpetual trades carefully
Summary
Hyperliquid is a decentralized perpetual futures platform designed to bring high-speed, professional-grade trading on-chain.
By combining self-custody with an order book model, it bridges the gap between DeFi transparency and CEX-level performance.
It is best suited for experienced traders who understand derivatives risk.
Safety Tips
Understand leverage and liquidation risks before trading
Use small position sizes when starting
Double-check URLs and smart contract interactions
Avoid trading with funds you cannot afford to lose
Stay informed about platform updates and risk parameters