What is Hyperliquid (HYPE)?

Bittime - What is Hyperliquid (HYPE)? Hyperliquid (HYPE) is a decentralized crypto derivatives exchange platform that first launched in 2022.

What is Hyperliquid (HYPE)?

The Hyperliquid (HYPE) platform operates on top of a specialized blockchain called Hyperliquid Layer 1 (L1).

Hyperliquid offers a perpetual futures trading feature, which allows users to trade leveraged crypto assets directly on the blockchain without requiring recurring wallet approvals.

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Purpose of Hyperliquid (HYPE)

Hyperliquid is designed to provide a fast trading experience with low latency and high security, thus approaching the service quality of a centralized exchange (CEX), but with the transparency and security of decentralized finance (DeFi) technology.

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Hyperliquid's Advantages as a Decentralized Exchange

Hyperliquid stands out with various features that make it a unique platform in crypto trading. Some of its key features are:

1. On-Chain Order Book

Hyperliquid uses a blockchain-based order book model that gives priority based on time and price, ensuring efficient order matching.

2. Rebate Incentive for Market Makers

The platform provides fee refunds to market makers as well as low fees for taker users.

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3. Cross Margin and Isolated Margin

Hyperliquid supports cross margin as well as isolated margin options, which gives traders the flexibility to manage their risk effectively.

4. Tendermint Technology and Low Latency

The platform utilizes Byzantine Fault Tolerance (BFT) consensus which enables ultra-low transaction latency, allowing users to enjoy high speed trading without interruption.

With the ability to handle up to 20,000 transactions per second including orders, cancellations, and liquidations, Hyperliquid offers a fast and smooth trading experience.

The platform supports a variety of major tokens such as AVAX, BNB, BTC, ETH, MATIC, and more, allowing users to trade popular crypto assets with ease.

Benefits of Running Hyperliquid on Layer 1 (Hyperliquid L1)

Since it is based on Layer 1 Hyperliquid, the platform offers high speed and better security compared to platforms that rely on other networks.

Byzantine Fault Tolerance (BFT) consensus technology allows nodes to reach an agreement despite interference, keeping the platform stable.

With Hyperliquid L1, users can enjoy a trading experience equivalent to a centralized exchange but with the advantages of DeFi technology that is fully transparent and secure.

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HLP (Hyperliquidity Provider) Program and Referral System

Hyperliquid gives its community the opportunity to be directly involved in its ecosystem through the referral system and the Hyperliquidity Provider (HLP) feature.

In the referral program, users can earn 10% of the fees paid by their referrals. HLP itself is a vault that allows users to participate in market making.

Usually, market making can only be done by large institutions, but Hyperliquid opens this opportunity for all users who are interested in contributing.

Every user who deposits into HLP will get a share of revenue from market making activities on the platform.

Hyperliquid Market Data Access with API

Hyperliquid provides access to real-time and historical market data thanks to integration with CoinAPI.

This data includes transactions, price quotes, and complete information about the order book. This information is extremely useful for traders who want to make accurate data-driven decisions.

In addition, Hyperliquid supports a wide range of trading pairs in SPOT and PERPETUAL formats, which can be accessed directly through the platform or API.

Solid Community and Experienced Development Team

The Hyperliquid community has played an important role in the platform's success.

On social media such as Discord, community members actively discuss the development of Hyperliquid and provide input for the development of new features.

Hyperliquid's development team comes from renowned institutions such as Harvard, MIT, and Caltech, bringing experience and credibility in creating decentralized financial technology solutions.

Conclusion

The combination of a strong community and an experienced development team makes Hyperliquid one of the decentralized derivatives trading platforms to watch out for.

References:

*https://www.blocmates.com/articles/a-complete-guide-to-hyperliquid*

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