• Developers can now launch perpetual futures without central approval.
• Builders set leverage, margins, order books, and fees up to 50%.
• HIP-3 adds HyperCore support with slashing and open interest safeguards.

Hyperliquid (HYPE), a decentralized derivatives exchange, has released its HIP 3 upgrade, permitting developers to create their own perpetual futures markets on the platform. These new markets come with support for trading perpetual swap contracts, which is a major step toward decentralizing perpetual swap contract creation and management.

What Is HIP-3?

HIP (Hyperliquid Improvement Proposal 3) allows developers to launch perpetual futures markets by locking up 500,000 HYPE tokens, worth around $20.5 million at current rates. Once locked up, deployers will have governance of numerous elements of the market, including margining, order books, leverage caps, and settlement processes. They can also assign a fee proportion of up to 50% over and above the base rate fee.

The upgrade introduces a permissionless model, removing the requirement for central approval in order to list new markets. This enables developers to design custom trading apps that address the needs of particular communities or assets.

Also Read: Hyperliquid Hack: $21 Million Loss Highlights Private Key Risks

Technical Infrastructure

HIP-3 runs on HyperCore, HYPE’s decentralized network, and supports smart contracts through HyperEVM integration. For market integrity, the proposal also provides protections like validator slashing and caps on open interest.

Market Implications

The activation of HIP-3 follows a major market incident in which Hyperliquid lost more than $10 billion in liquidations in the context of a general market decline. This has not weakened the HYPE token, however, with the token having rebounded from a low of $20 to around $42, reflecting strong investor confidence.

Industry analysts consider HIP-3 a revolutionary move in the decentralized finance (DeFi) ecosystem. By decentralizing the listing process, Hyperliquid (HYPE) is establishing itself as a building block for financial infrastructure, making possible new classes of assets and trading opportunities.

Looking Ahead

With HIP-3 live, traders and developers are now able to discover more trading opportunities on Hyperliquid. Not only does this improve the platform’s functionality but also help drive the development of decentralized financial ecosystems forward.

Also Read: Hyperliquid (HYPE) Breaks Out Strong Signaling Start of Bullish Momentum