Hyperliquid is a decentralized exchange focused on trading perpetual futures. The platform aims to combine the qualities of centralized exchanges—execution speed, market depth, and responsiveness—with the benefits of on-chain settlements and a non-custodial approach.
What Is Hyperliquid?
Essentially, Hyperliquid is a DEX specifically built for perpetual futures. Unlike early DEXs that relied on AMMs or off-chain order matching, Hyperliquid uses a fully on-chain order book with limit orders, where trades, liquidations, and funding payments are recorded on the platform’s blockchain.
This architecture enables a familiar order book mechanic for professional traders and improves price discovery quality without transferring funds to centralized exchanges. However, users must first bridge assets onto the Hyperliquid network to participate in trading.
Who Created Hyperliquid?
The project was developed by Hyperliquid Labs under the leadership of Jeff Yan, a former high-frequency trader with experience at Hudson River Trading. His expertise in trading mechanics laid the foundation for bringing professional execution methods into an on-chain environment.
Hyperliquid’s development was unconventional for a major crypto project: the platform did not raise venture capital and was funded through the team’s own resources. This model influenced the governance structure and development priorities of the project.
How Does Hyperliquid Work?
The exchange operates on its own independent Layer 1 blockchain, not on Ethereum or an existing rollup. This choice prioritizes throughput and low latency, which are critical for derivatives markets where execution time is essential.
The trading logic is implemented through a centralized limit order book directly on-chain: limit and market orders, liquidations, and settlements are executed and recorded on-chain. The platform also does not require user identification (KYC), allowing trading without identity verification.
Why Did Hyperliquid Gain Popularity in 2025?
The platform’s growth is explained by its combination of a trader-friendly interface and on-chain, non-custodial settlements. Hyperliquid offered fast execution and mechanics close to centralized exchanges (CEX) while maintaining user control over funds, attracting significant volume in the perpetual futures segment.
By 2025, the platform consistently ranked among the top decentralized venues by perpetual futures trading volume, confirming demand for on-chain infrastructure capable of handling high volumes.
The HYPE Token and Its Role
The native HYPE token was launched at the end of 2024 and is used for governance and network functions within the ecosystem. Token distribution focused on platform users, and the protocol’s model directs revenues toward token buybacks instead of broad emission incentives.
HYPE’s role involves participation in governance and operational network mechanisms, emphasizing the project’s focus on infrastructure rather than short-term volume incentives through large token emissions.
Competitors and Hyperliquid’s Position
In the decentralized derivatives market, Hyperliquid competes with existing platforms and emerging perpetual DEXs. Despite growing competition, the platform has maintained one of the leading positions in liquidity and open interest within the perpetual futures segment.
Thanks to its own Layer 1 and on-chain order book, Hyperliquid positions itself more as trading infrastructure than just another exchange, creating a distinct set of advantages over some competitors.
Why This Matters
For miners with 1–1000 devices in Russia, news about Hyperliquid is important because non-custodial tools are becoming more accessible in the derivatives market. If you hold part of your capital in crypto assets and consider trading derivatives, Hyperliquid offers the ability to trade without KYC and with on-chain settlements.
Additionally, the emergence of a powerful on-chain platform impacts the ecosystem as a whole: growing liquidity and new infrastructure solutions can influence demand for certain stablecoins and methods of moving assets between networks, which should be considered when managing liquidity and risks.
What To Do?
If you mine and want to interact with such DEXs, start with basic steps: check which assets you have available for bridging, understand the concepts of bridges and entry fees, and use a separate wallet for trading operations, distinct from your mining address.
Don’t forget simple security measures: keep private keys in a safe place, verify contract addresses before interacting, and don’t store more funds on exchanges than you’re willing to lose. For a detailed overview of the people behind the project, read the article about Jeff Yan, and for questions about the token, check the article on the HYPE token.