No. It describes Tier 0 validator-operated perps. HIP-3 deployer fees and growth mode change the total.
Source · Verified:
38 7
Detailed Review of Exchange Hyperliquid (Futures)
HyperLiquid is a decentralized exchange specializing in perpetual futures contracts. During the challenging bear market, the project has shown moderate growth and features an interface that closely resembles FTX.
Technical Essence of the Project
Architecture and Mechanism of Operation
The project is built on smart contracts deployed on its own Hyperliquid L1 appChain. This chain provides confirmations within fractions of a second, high throughput, and cost-effective transactions. The consensus mechanism is based on Tendermint and includes staking and slashing, similar to Cosmos chains.
Interface
The interface is user-friendly for those who have previously engaged in trading perpetual contracts. To start trading, it is necessary to deposit funds in USDC as collateral on Arbitrum.
Key Features
When placing an order on the exchange, it is added to the order book and matched with orders at intersecting prices. Margin checks are performed both when opening and matching each order to ensure risk tolerances are met. There is an internal liquidation system based on internal capital and an insurance fund.
Key Metrics
Trading Volume
Perpetual futures contracts are offered for around 50 markets with a maximum leverage of up to 50x. The project provides a significant number of recently issued tokens, which is part of their value proposition.
TVL (Total Value Locked)
Although the total amount of locked funds is modest, there is a steady growth, which is encouraging given the current market sentiment and challenges in attracting users.
Risks and Unresolved Issues
Security
Despite claims of an audit being conducted, the results have not been published publicly. There is mention of a hack on DeFillama related to price manipulation.
Regulatory Risks
The developers remain anonymous, but rumors suggest they are a duo of Harvard graduates expanding their team in the U.S. Given that the team is based in the U.S., significant regulatory risks and challenges are expected ahead.
Conclusion
HyperLiquid represents an interesting protocol for arbitrage trading on decentralized exchanges. Due to the listing of highly volatile assets, it is assumed that experienced traders have the opportunity for quick and profitable trading.
For Investors: The project's prospects appear promising; however, it is essential to consider security and regulatory risks, especially in light of unpublished audit results and the anonymity of the developers.
Investment Advice: Conduct your own research before making any investments and be sure to take the mentioned risks into account.
