What Is Hyperliquid?
Hyperliquid is a decentralized perpetuals exchange with up to 50x leverage. Users can deposit USDC via Arbitrum and start trading 100+ popular crypto assets. Their goal is to make decentralized trading feel like any CEX (centralized exchange) such as Binance or MEXC.
To feel like a CEX, there are no wallet approvals to interrupt your flow. Just sign your crypto wallet at the beginning of the trading session. There is also advanced order types like TP/SL and a fully on-chain order book. Plus, you get all the benefits of a DEX like self-custody and no KYC.
How Does It Work?
To trade on Hyperliquid, you need a DeFi wallet like MetaMask and USDC and ETH on the Arbitrum network. USDC is used as collateral to make trades on Hyperliquid. ETH is used to pay for Arbitrum gas fees to deposit and withdraw your USDC (gas fees are typically below $0.30). You can watch my YouTube video above to see how to get started and refer to Hyperliquid's tutorial here.
Makers receive a 0.002% rebate and the taker fee is 0.025%. This is lower than the average Perp DEX fee of about 0.05%. You can compare fees for all Perp DEXs in our comparison tool. Hyperliquid also has zero gas fees and high trading volume, ensuring good liquidity. In their Documentation, gas fees will be introduced eventually to help protect the L1 network.
Risks or Security
Hyperliquid launched in 2022 on their custom chain called Hyperliquid L1. This chain has not faced extensive testing as other established L1s like Ethereum. There is also other risks outlined in the documentation like smart contract risk, oracle manipulation risk, and more. Plus, trading crypto with leverage is very risky as well and you could get liquidiated.
Hyperliquid introduced a points system, which usually contributes to an airdrop. While an airdrop is not confirmed, early users of the DEX could be rewarded if they launch an $HLP token. Here are the tasks you should do if you want to try to get the potential Hyperliquid airdrop:
- Earn as many points as you can (Ends May 1, 2024).
- Try to climb the leaderboard.
- Increase your total number of trades and total trading volume.
- Refer friends.
- Deposit money in the the HLP vault.
- Interact with the Hyperliquid testnet.
- Use any other features they release.
Is Hyperliquid Worth It?
Hyperliquid checks most of the boxes. It offers an extensive range of coins, a CEX-like experience, fast transactions, and competitive fees. Compared to other Perp DEXs, Hyperliquid is one of the best on the market.
Compared to centralized exchanges though, it still has a ways to go. While you get the benefits of a DEX, you can still find more volume, number of assets and total number of features on a popular CEX.