Hyperliquid (HYPE)

Hyperliquid is a decentralized perpetual futures exchange that operates on its own purpose-built layer-1 blockchain. It launched in 2023 and quickly gained traction for offering CEX-like performance with DeFi principles.

The platform is designed for high-frequency trading with sub-second latency, deep liquidity, and a familiar trading experience. It supports leveraged perpetual contracts on various crypto assets.

HYPE is the native token of the Hyperliquid ecosystem. It's used for staking, governance, and fee discounts on the platform. The token was launched via one of the largest airdrops in crypto history.

Hyperliquid differentiates itself by building its own L1 rather than deploying on existing chains. This allows complete control over performance, ordering, and the trading experience.

Hyperliquid runs on its own high-performance L1 blockchain called HyperEVM, which is optimized for trading operations. The chain achieves high throughput and low latency necessary for perpetual futures trading.

The exchange uses an order book model rather than an AMM, providing tighter spreads and more efficient price discovery. Market makers provide liquidity and earn rebates.

Users deposit USDC as collateral and can trade perpetual futures with up to 50x leverage. The platform handles margin, liquidations, and funding rates on-chain.

The HyperEVM supports additional applications beyond trading, creating an ecosystem around the high-performance infrastructure. This includes spot trading and potential future DeFi applications.