Hyperliquid: A freshly known dark horse

Author: yihang; Source: Author Twitter@yihang69

In the field of cryptocurrency, many projects highly depend on speculation, airdrop expectations, and even spend huge sums of subsidy transactions to get attention (Youknowwho).

However, Hyperliquid is different. They do not do any publicity, nor have they received any financing (no performance pressure) from venture capital, nor rely on subsidies to attract transactions.With strong strength products, they can surpass many competitors.

one,Why not finance?

Because they have a very strong profitability! Hyperliquid has been making money since the first day, and it is very profitable! And because the team size is relatively small, members also have the background of the top high -frequency volume team, so they do not need to rely on the help of the outside world to help the outside world.You can make the project bigger and stronger.

2. So what exactly is Hyperliquid?

Hyperliquid is not only a decentralized permanent contract exchange (speculation on the chain). They also have high -speed spot markets and actively embrace Meme culture (the iconic Meme: “Purr”).They are still actively developing their own L1 public chain.

Third, why is a new public chain?

Because Hyperliquid wants to create a “pure chain order book” optimized for the “high -frequency transaction” (HFT).Hyperliquid L1 mainly focuses on low latency and high throughput, which requires an excellent and reliable public chain, which is currently not satisfied with L1 and L2.In addition, the existence of block space and GAS fees will greatly reduce the profit space and efficiency of high -frequency transactions.So a CLOB (order book) exchange that is designed for high -frequency transactions is the only solution

4. Why is the “Pure Chain Order Book” very necessary?

In simple terms, it is to achieve “more trust, fairness, more open, and more transparent.”

At present, the mainstream exchanges use “chain order book”, which makes the exchange itself “absolute advantage”.They can conduct first trading, reject orders, risk control restrictions on your transactions, and obtain benefits from users in various ways.

Exam on the two centralized order books:

In 2022, cointelegraphPublished an article, pointing out that Alameda has “unfair advantage” on FTX, including its order execution faster, and ALAMEDA’s positions will never be liquidated (no position).
The problemThe Municipal Chamber of Commerce pays the securities firms to obtain the “order flow”.When you place an order in the securities account, the brokerage will hand over your order to the market maker decide whether to deal with them or put orders in the open market.

This is the disadvantage of centralized order books, full of opaque and unfairness.Users also need to trust unconditionally. They will not profit from it.

five,How does Hyperliquid’s “Pure Chain Order Book” solve these problems?

By running the entire order book on the chain, all transaction executions are open, transparent and verified, thereby avoiding the above problems to a certain extent.

six,Why is it “to a certain extent” instead of completely avoided?

Because all the L1 public chains have a problem:MEV (maximum extraction value).Simply put, the miners in the blockchain may collect “bribery” to re -sort the transactions on the chain.But visible issues are always easier to prevent.

seven,Hyperliquid’s goal:

Hyperliquid is not just a decentralized contract exchange.They use contract transactions as the starting point, focusing on derivatives, and committed to establishing aThe Financial Empire on the huge chain(Similar to the reincarnation of Binance or FTX on the chain).I believe this is also the reason why their points issued weights are mainly from the initial contract transactions, and gradually shifted to spot transactions.They hope to develop more financial applications on Hyperliquid.

eight,Expectation of DEFI innovation:

I am looking forward to the innovation brought by Hyperliquid for DEFI.Just as @Kiki520 ETH said, the AMM model is only a product of the limitation of the times, and its capital efficiency is far less than that of the order -thin model, and the order book on the chain is the ultimate form of DEX.I recognize it.

When a truly decentralized and efficient chain order appears, many interesting innovations may be spawned:

Project similar to Ethena:Build a basic vault based on “native assets” on Hyperliquid, and does not need to rely on centralized exchanges.
High -performance decentralized option trading market:Further extended various structural products.As we all know, the structural product of the centralized exchange is “drawn” serious, and I think more value should be given back to users.

Nine,Powerful community support:

Hyperliquid has strong community support.Many users change their names to xxx.hl to express their support and confidence in the platform.For example:

jeff.hl @Chameleon Jeff

steven.hl @Stevenyuntcap

Tea doesn’t think .hl @mdzzi

10. How to capture the value in advance before the Hyperliquid issuance?

I personally think there are three ways:

1) Invest in its iconic Meme coin “Purr”: Optimistic about its growth potential.

2) Injecting HLP: This is a simple point of view on the market robot on Hyperliquid.

One of the things worth noting, as long as this strategy is “long -term profit”, when the strategy is retracted, this will be a very good opportunity to add a position to HLP

The logic will not be explained here. You can go to see my big guy @Aansontradveller’s post https://x.com/ansontradveller/status/18272484284912383

3) Buy Hyperliquid Point: Looking forward to rising prices when issuing coins.

In fact, I think that buying Hyperliquid Point is a way that can capture the value of Hyperliquid because these points directly correspond to the tokens. The more points = the more tokens, and the current market is also optimistic about Hyperliquid Point.

The following is the price trend of Hyperliquid Point, which is a very healthy upward trend

11. I have a small point of view:

Because Hyperliquid does not rely on any venture capital (therefore, it does not need to be distributed for investors), and the team’s own profitability is extremely powerful (very profitable), they have all reasons to increase the proportion of points for airdrops.According to my conservative estimation, at least 15%of the token distribution will be used for integral airdrops, and my optimistic estimation is that the share shares may rise to 30%.

According to the MESSARI report, the market’s valuation of the Hyperliquid points is “too conservative”.Combined with their valuation model,

I think the reasonable price of the Hyperliquid points should be between $ 5 and 14.

https://app.bubbly.finance/swap @bubblyfinance is traded.They currently have the best Hyperliquid points trading market in the market, and the operation is very simple.You just need to go to their interface https: app.bubbly.finance/swap, select Hyperliquid Point and click the exchange button, just as convenient as trading on Uniswap.

If you think the handling fee is high, you can try more advanced operations.Set a very narrow LP interval below the current price, which is used as an order similar to the “price limit”, or is equivalent to buying Hyperliquid Point with DCA.When the price falls below this range, withdrawing LP, your assets will all become Hyperliquid Point. You will earn LP income and save fees.

Twelve, summary:

As a trader and Defimaxi, I am confident in Hyperliquid.With a solid product and unique vision, they are leading the new wave of decentralized exchanges.In the current market environment, the real valuable projects will eventually be recognized.Perhaps it is the best time to participate in Hyperliqui’s growth.