Produced by: DODOResearch
Author: dt
Editor: Lisa
This week, the overall market continued to decline due to various complex reasons such as the weakness of the US stock market. Friends, it is important to stay calm and face the market with a calm mind. When the market conditions are not ideal, it is a good time to conduct in-depth research on projects. Today, Dr. DODO will introduce the application project "Hyperliquid" that has been launched on Arbitrum, which has been the hottest topic in 2022.
Hyperliquid
Hyperliquid is a high-performance L1 blockchain, essentially born for Hyper's native Dex, making the Dex independent of off-chain order books. It stores important data states including order books, margins, and trade matching engine states on the blockchain, designed with the principle of complete decentralization. Currently, Hyper theoretically supports up to 100,000 orders per second, with a block delay of less than 1 second. It uses and improves the custom consensus algorithm HyperBFT inspired by Hotstuff, optimizing Hotstuff from scratch to reduce the median end-to-end latency to 0.2 seconds.
Hyperliquid Dex
Hyperliquid Dex is a native application built on Hyperliquid L1, known for its outstanding speed, liquidity, and low fees as a decentralized exchange. It currently focuses on providing contract trading and is committed to providing users with a seamless trading experience. The platform offers advanced trading features such as TWAP (Time-Weighted Average Price), scale orders, and TP/SL (Take Profit/Stop Loss) orders, allowing traders to modify and cancel orders directly from the TradingView chart.
Key Features:
- Speed and Finality: Hyperliquid Dex promises instant fast transactions in less than a second, eliminating the need for transaction confirmation and minimizing the risk of Miner Extractable Value (MEV).
- On-chain Transparency: Hyperliquid Dex has a fully on-chain order book, ensuring that all trades, funds, and settlements are transparent and verifiable.
- Cost-effectiveness: Zero gas fees, market maker rebates, and low trading fees make trading more accessible, providing more favorable trading options for high-frequency trading.
- Leverage: Users can trade with leverage of up to 50x, improving capital efficiency.
- User-friendly: One-click trading without wallet authorization greatly simplifies the trading process.
HIP & Spot
HIP-1 is a native token standard developed by Hyper for Spot trading, representing a major innovation towards high-performance native components for Hyper. Tokens compliant with this standard can easily establish on-chain spot order books on Hyperliquid Dex. HIP-2 is the spot liquidity of HIP-1 tokens, similar to the liquidity pools in AMMs like Uniswap, interacting with the native on-chain order book to provide users with more diverse order book liquidity. Compared to traditional AMMs, the existence of HLP can rapidly provide liquidity when demand increases. HIP-2 also allows users to provide liquidity for individual trading pairs and earn spreads, ensuring a 0.3 spread every 3 seconds to incentivize users to provide liquidity for trading pairs.
Gas Costs
Issuing HIP tokens on Hyper incurs gas costs. Currently, since the Hyper token has not been listed, the deployment and modification gas costs for HIP tokens are paid using USDC. This cost is determined by a 31-hour Dutch auction, during which the cost linearly decreases to 100 USDC. The current gas will be sent to HLP and shared with staking users, but after the Hyper protocol token is listed, this portion of income will be conventionally paid to L1 validators. As of now, the income from issuing less than 100 HIP tokens has exceeded one million US dollars. Therefore, this income will be a significant portion of Hyper's future income, and the team will actively market this token standard to increase this portion of income.
Market
Currently, there are four officially marked targets, namely $PURR, $HFUN, $POINTS, and $JEFF, with $PURR reaching a market value close to 150 million US dollars at its peak.
Vaults
Hyperliquid has introduced Vaults as a form of copy trading. By depositing funds into Vaults, users can automatically replicate the trades of the Vaults and share profits. Users can create their own Vaults, trade using other people's funds, and earn commission fees. This feature provides a very simple trading strategy and a way to participate in trading for those without extensive market knowledge.
HLP
HLP is the official endorsement of Vaults by the Hyper protocol, currently responsible for providing liquidity and settlement for Dex, and democratizing the distribution of Dex's benefits. HLP allows community members to provide collateral for Hyper Vaults and share in the protocol's profits. To improve the performance of this Vaults, the liquidation has been merged into the market-making Vaults. As the official vault of the Hyper protocol, its performance has been outstanding, with a total PNL exceeding $30M+. The average APR in the past month has been as high as 31% (note that this APR represents the annual average return calculated in July, not the monthly return rate).
Points
The first phase of Hyper's points program ended on May 1, 2024, lasting for 6 months, distributing 1,000,000 points to users weekly as a reward for contributing to the Hyper protocol. The main ways to earn points are by completing trades and holding positions in the Dex. The current ongoing points program is the L1 phase, which started on May 29, 2024, and will last for 4 months.
Author's View
Overall, Hyperliquid aims to combine the advantages of centralized exchanges (CEX) with decentralized finance (DeFi) to provide a powerful, transparent, and user-friendly trading platform. Since its launch on the Arbitrum Goerli testnet in 2022, Hyper has been continuously developing, enriching its trading pairs, and providing significant liquidity for many new targets. It has also accumulated certain technical expertise, specifically balancing the trade-off between transaction speed and security by creating an L1 for applications, which aligns with the trend of one chain per application in the future. In terms of user experience, trading is almost imperceptible, with little difference from placing orders on traditional exchanges. The real-time pricing of oracles is also very high, making it apt to describe it as "high availability, low latency" in the current blockchain application field. The recent launch of spot trading is also a significant highlight, combining the advantages of order books and AMM trading models, likely exploring a promising new niche, with the potential to replicate the meme market of Solana's pump.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
