What is Hyperliquid (HYPE)?
Hyperliquid is a blockchain built specifically for trading. Order book runs fully on-chain. CEX-like speed, DEX self-custody. HYPE launched in November 2024 with one of crypto's biggest airdrops. Now a top-20 token by market cap.
Key Facts
What is Hyperliquid?
Hyperliquid is a Layer-1 blockchain built for trading. Not AMMs like Uniswap. Not off-chain matching. Full order book on-chain. Limit orders, stop-losses, pro features. Over $200 billion monthly volume. That rivals centralized exchanges.
Key differences from other DeFi:
- • HyperBFT consensus: ~1 second blocks, immediate finality
- • Fully on-chain: Every order, fill, and liquidation is transparent
- • Non-custodial: Trade from your wallet. You keep control
- • Deposits via Arbitrum: USDC collateral to smart contracts
HYPE launched November 2024. Massive airdrop - 31% to early users based on trading activity. One of the biggest token distributions ever. Tens of billions in value at peak.
HYPE is used for transaction fees, staking for fee discounts, and future governance.
Who Created Hyperliquid? A Brief History
The Team
- • Jeff: Co-founder. Quant trading background
- • iliensinc: Pseudonymous co-founder
- • Team from traditional finance and high-frequency trading
- • No VC funding. Entirely self-funded
This independence let them prioritize users over investors. Bigger airdrop. No investor unlock pressure.
Philosophy
"Build first, talk later." Years of development before marketing. Performance and reliability over hype. Rare in crypto.
Key Milestones
- • 2022: Development starts
- • 2023: Private beta
- • Early 2024: Public launch. Volume grows fast
- • Mid-2024: $100B+ monthly volume. Top perp DEX
- • November 2024: HYPE airdrop. 31% to users
- • Late 2024: HYPE hits top-20 by market cap
- • 2025: HyperEVM, builder markets expanding
How Hyperliquid Works
Custom L1 blockchain + professional trading infrastructure = CEX performance with DEX security.
HyperBFT Consensus
- • Optimized specifically for trading operations
- • ~1 second blocks with immediate finality
- • Fast enough for professional traders
On-Chain Order Book
Every order lives on-chain. Not AMM pools. Not off-chain matching. Full order book.
- • Limit orders, market orders, stop-losses, take-profits
- • Better price discovery, tighter spreads
- • Every trade transparent and verifiable
Perpetual Futures
- • Derivatives that track prices without expiration
- • Up to 50x leverage on major pairs
- • Funding rates keep perps aligned with spot
- • Cross-margin and isolated margin modes
- • On-chain liquidations with insurance fund
Non-Custodial
Deposit USDC via Arbitrum. Assets stay in smart contracts. You keep custody. No exchange holding your funds. No counterparty risk from hacks or insolvency.
How to Stake HYPE
Staking gives you trading fee discounts. More stake = bigger discount.
Benefits
- • Trading fee discounts (bigger stake = bigger discount)
- • Future: referral bonuses, builder market access, governance
- • Helps secure the network as validators decentralize
How to Stake
- Connect wallet to app.hyperliquid.xyz
- Navigate to staking section
- Enter stake amount and confirm
Non-custodial. Your HYPE stays in your control. Unstaking may have a waiting period.
Future: Validator Staking
Planned: delegate to validators like on Ethereum or Solana. Earn rewards from block production. Part of Hyperliquid's decentralization roadmap.
Tip: Calculate if fee savings beat the opportunity cost of holding HYPE. Active traders benefit most.
Why HYPE Has Value
Utility
- • Transaction fees paid in HYPE
- • $200B+ monthly volume = constant fee demand
- • Staking locks supply for fee discounts
- • Future validator staking will lock more
Market Position
- • Leading on-chain perp exchange
- • Fully on-chain order book (CEXs can't match this)
- • No VC unlocks creating sell pressure
- • Broad holder base from airdrop
- • HyperEVM and ecosystem expansion planned
Risks
- • Competition: dYdX, GMX, others
- • Regulatory uncertainty around derivatives
- • Early-stage validator centralization
- • Airdrop recipients may sell without conviction
- • Smart contract risk always exists
- • Platform token volatility tied to market conditions
How to Buy HYPE
Available on major exchanges or directly on Hyperliquid.
1Compare providers
Binance, OKX, Bybit, KuCoin, Gate.io all list HYPE. Or buy directly on Hyperliquid if you already have deposits there.
2Create account or connect wallet
CEXs need KYC. For Hyperliquid, just connect wallet and deposit USDC via Arbitrum. No ID required.
3Deposit funds
CEXs: fiat or crypto. Hyperliquid: bridge to Arbitrum, deposit USDC. Need some ETH on Arbitrum for gas.
4Buy HYPE
Find HYPE pair, enter amount, confirm. On CEXs, consider withdrawing to personal wallet. On Hyperliquid, it's already in your non-custodial account.
Next step: Compare HYPE providers in your country to find the best price.
How to Store HYPE
On Hyperliquid
Non-custodial. You control through your wallet. Good for staking and trading. Smart contract risk exists.
Software/Hardware Wallets
MetaMask and Ethereum-compatible wallets work. Ledger/Trezor for maximum security. Verify network settings before sending. Keep private keys offline.
Exchange Wallets
Convenient but risky. Exchange holds keys. Only keep what you're actively trading.
Security: Recovery phrase on paper, multiple secure locations. Verify you're on real Hyperliquid site (app.hyperliquid.xyz). Hardware wallet for $10K+. 2FA on exchanges.
How to Use HYPE (HYPE)
Transaction Fees
Every L1 transaction needs HYPE for gas. Active traders need some in their account. More volume = more HYPE demand.
Staking for Discounts
Stake HYPE to reduce trading fees. Big traders save substantially. Creates incentive to hold and stake.
Trading HYPE Perps
Hyperliquid lists HYPE perpetual futures. Go long or short with leverage. Hedge or speculate.
Future Uses
- • Governance voting
- • Referral bonus multipliers
- • Builder-deployed market access
- • Validator staking rewards
- • HyperEVM DeFi integration
Notable People in Hyperliquid
Low-profile team. "Build first" philosophy. Not endorsement.
Jeff (Co-founder)
Primary public face. Quant/HFT background. Led technical vision. Emphasis on product over marketing. Lower profile than most crypto founders.
iliensinc (Co-founder)
Pseudonymous co-founder. Technical and strategic contributions. Privacy-focused approach.
The Team
Engineers from traditional finance, HFT firms, big tech. Lean team focused on performance.
No-VC: Self-funded. No investor unlock pressure. Bigger airdrop to users. Long-term user alignment over short-term growth metrics.
Regulation Overview for Hyperliquid
Perpetual futures face heavy scrutiny. Hyperliquid operates in complex regulatory territory.
United States
- • CFTC regulates perpetual futures
- • CFTC has pursued enforcement against DeFi derivatives (Ooki DAO)
- • Hyperliquid doesn't market to US users
- • US users face legal risk
- • HYPE's security status unclear
Global Access
No KYC. Connect wallet and trade. But: UK banned retail crypto derivatives. Other jurisdictions have restrictions. Know your local laws.
Decentralization
Non-custodial architecture may help. But decentralization doesn't guarantee immunity. Other DeFi protocols have faced enforcement.
EU and Asia
- • EU: MiCA evolving. Leverage limits possible
- • Singapore: MAS regulates derivatives
- • Japan: FSA strictly controls crypto futures
- • Other jurisdictions more permissive
Warning: Derivatives heavily regulated. Using Hyperliquid may violate local laws. DeFi enforcement is increasing. Non-custodial doesn't mean immune. Know your jurisdiction.
FAQs About Hyperliquid (HYPE)
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