Hyperliquid is pseudo-decentralized. The backend mechanism is exactly the same as a centralized exchange, except on Hyper, you don’t have a centralized exchange deposit address or a deposit action. In reality, your authorization is essentially depositing funds into the contract vault, and it’s using that problematic 7702 protocol. As for KYC, since Hyper runs on the Layer 2 chain ARB, any address’s funds can be traced back to a centralized address. Plus, ARB can even transfer funds from your address without needing your private key, so there’s no need for KYC.