Hyperliquid is a decentralized exchange (DEX) for trading crypto futures, offering many features like traditional exchanges (CEXs) but operating completely on-chain.
Description
Here's how it works:
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Fast and Efficient: Runs on Hyperliquid L1, a blockchain using Tendermint for consensus. This allows fast, transparent on-chain actions with less than 1-second block latency. It supports 20,000 orders per second.
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Mission: Hyperliquid aims to make crypto trading accessible, transparent, low-cost, and efficient. It focuses on democratized market access and self-custody of assets.
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Traditional Finance (TradFi) Features:
- Advanced orders like Stop Loss, Take Profit, Limit, Market, and Reduce Only orders.
- Up to 50x leverage on over 20 assets.
- Hourly distribution of funding rates.
- Upcoming hedged positions for earning funding rate APR.
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Decentralized Finance (DeFi) Features:
- Blockchain benefits like transparency, speed, cost, security, and anonymity.
- ERC-20 token (USDC) as collateral.
- Complete ownership of funds with instant withdrawal.
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Order Book System Benefits:
- Protects against front-running, MEV attacks, slippage, impermanent loss, slow transactions, and high fees.
- Offers traders low fees, fast execution, and fewer wallet approvals.
- Allows up to 50x leverage with full on-chain transparency.
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For Liquidity Providers: Offers TradFi market-making benefits in Web3 without impermanent loss.
In summary, Hyperliquid provides a powerful on-chain solution for trading crypto futures, combining the best of traditional and decentralized finance with high performance, security, and user-friendly features.