The Whale Who Was Up $100 M: Why I’m Leaving HyperLiquid
Protocol Survived, Users Didn’t I just made a personal—and painful—decision: I will no longer trade on HyperLiquid. I’m not calling for a boycott; I’m simply following the drift of my own values. After clearing $95 M on HL—and crossing nine figures across venues—my P&L is still positive this year. But on 10 October I lost $62 M in a single liquidation cascade. That day showed me the industry has out-grown its “hope and prayer” risk architecture.What Actually Happened on 10·10Binance’s interna...
From Meta to Blockchain Rising Stars: The Rise of Sui and Aptos
In recent years, the cryptocurrency market has experienced explosive growth. The success of mainstream cryptocurrencies like Bitcoin and Ethereum has attracted widespread attention from global investors. Emerging projects continue to emerge, offering a variety of investment opportunities. Investors are attracted by their high potential for returns, while also being aware of the market's high volatility and risks. Sui and Aptos are two blockchain projects that have recently garnered significan...
When the “Infinite-Ammo” mNAV Flywheel Reverses: Hidden Sell-Side Risks in the Crypto-Treasury Narra…
Executive Summary Treasury-driven alt-coins have turbo-charged this bull run. Ethereum has risen from US$1 800 to US$4 700 (+160 %) as listed “mini-MSTRs” like SBET and BMNR relentlessly buy ETH. Solana, BNB and HYPE have spawned copy-cat treasuries of their own. But the same flywheel that lifts prices can spin backwards. WINT—once a BNB-treasury poster-child—was delisted by Nasdaq and fell 91 %. Lion Group just trimmed US$500 k of its own HYPE stack. If mNAV (market-to-NAV ratio) drops below...
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The HIP-3 Revolution: Hyperliquid's Agile Response to Market Competition
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The Whale Who Was Up $100 M: Why I’m Leaving HyperLiquid
Protocol Survived, Users Didn’t I just made a personal—and painful—decision: I will no longer trade on HyperLiquid. I’m not calling for a boycott; I’m simply following the drift of my own values. After clearing $95 M on HL—and crossing nine figures across venues—my P&L is still positive this year. But on 10 October I lost $62 M in a single liquidation cascade. That day showed me the industry has out-grown its “hope and prayer” risk architecture.What Actually Happened on 10·10Binance’s interna...
From Meta to Blockchain Rising Stars: The Rise of Sui and Aptos
In recent years, the cryptocurrency market has experienced explosive growth. The success of mainstream cryptocurrencies like Bitcoin and Ethereum has attracted widespread attention from global investors. Emerging projects continue to emerge, offering a variety of investment opportunities. Investors are attracted by their high potential for returns, while also being aware of the market's high volatility and risks. Sui and Aptos are two blockchain projects that have recently garnered significan...
When the “Infinite-Ammo” mNAV Flywheel Reverses: Hidden Sell-Side Risks in the Crypto-Treasury Narra…
Executive Summary Treasury-driven alt-coins have turbo-charged this bull run. Ethereum has risen from US$1 800 to US$4 700 (+160 %) as listed “mini-MSTRs” like SBET and BMNR relentlessly buy ETH. Solana, BNB and HYPE have spawned copy-cat treasuries of their own. But the same flywheel that lifts prices can spin backwards. WINT—once a BNB-treasury poster-child—was delisted by Nasdaq and fell 91 %. Lion Group just trimmed US$500 k of its own HYPE stack. If mNAV (market-to-NAV ratio) drops below...
Amid the RWA boom, Pre-IPO demand, and intensifying CEX competition, Hyperliquid's HIP-3 proposal is poised to redefine on-chain derivatives. By transitioning from a closed platform to open infrastructure, it unlocks new business logic and investment opportunities.
In May 2025, Hyperliquid's HIP-3 proposal garnered widespread attention in DeFi, with its MVP now live on testnet. This isn't just a protocol upgrade—it's a strategic leap that could reshape the future of on-chain derivatives trading.
Hyperliquid's evolution is structured around three core proposals (HIPs), each addressing critical industry pain points:
Problem: Opaque, costly listing processes on centralized exchanges force projects into unfavorable terms.
Solution: HIP-1 enables permissionless token creation on Hyperliquid (like ERC-20) for a fee (paid in $HYPE), instantly spawning a spot order book. This democratizes market access.
Problem: New tokens often suffer from illiquidity ("cold start" dilemma).
Solution: HIP-2 ("Hyperliquidity") acts as a native market maker, providing baseline liquidity for HIP-1 tokens via automated bid/ask placements.
Problem: Perpetuals—the largest crypto market—were previously gatekept by Hyperliquid's core team.
Solution: HIP-3 lets any "Builder" deploy custom perpetuals by staking 1M $HYPE (~$42M at current prices). Builders control key parameters (collateral, oracles, leverage) and earn 50% of trading fees—a lucrative incentive.
Together, these transform Hyperliquid from a DEX into a modular financial infrastructure layer.
Mechanism: The 1M $HYPE stake filters for deep-pocketed players (e.g., hedge funds), who will prioritize high-volume RWA markets like:
S&P 500 Index: A 0.1% capture of CME's $512B daily volume could yield builders $256K/day—ROI in ~164 days.
Gold/Forex: Modular design allows tailored risk parameters for diverse RWAs, akin to Aave V4's Hub+Spoke model.
Challenges:
High staking costs exclude retail.
Initial liquidity gaps for new perpetuals.
Emerging Solutions:
$HYPE LSTs: Protocols like HLAggregator could pool retail stakes, issuing liquid staking tokens (LSTs) to share fee revenue.
"Hyperliquid Wars": Expect Curve-style battles among liquidity aggregators vying for $HYPE deposits and project partnerships.
Hyperps Innovation: This feature enables perpetuals for unlisted assets (e.g., SpaceX, OpenAI) by using EMA-based funding rates instead of spot oracles.
Price Discovery: Creates reference prices pre-IPO, reducing散户 exploitation during public listings.
CEX Weaknesses: Slow product launches (e.g., Coinbase's months-long approvals for basic BTC/ETH perps).
Hyperliquid's Edge:
NFT Indices: Launched during NFT mania.
SocialFi Perps: Traded friend.tech keys at peak hype.
HIP-3 accelerates this agility, making market creation fully permissionless.
HIP-3 isn’t just an upgrade—it’s Hyperliquid’s bid to become the core infrastructure bridging DeFi and TradFi. Challenges remain (liquidity bootstrapping, global compliance), but the vision is clear: a modular, composable, and institution-ready on-chain economy.
Key Questions Ahead:
Can $HYPE’s deflationary mechanics sustain its value capture?
Will regulators tolerate decentralized Pre-IPO markets?
One thing’s certain: The race for derivatives dominance just got more interesting.
Data Sources:
Hyperliquid Docs
CME Volume Reports
Aave V4 Whitepaper
Translated for precision, preserving financial/technical nuances while optimizing readability for global DeFi audiences.
Amid the RWA boom, Pre-IPO demand, and intensifying CEX competition, Hyperliquid's HIP-3 proposal is poised to redefine on-chain derivatives. By transitioning from a closed platform to open infrastructure, it unlocks new business logic and investment opportunities.
In May 2025, Hyperliquid's HIP-3 proposal garnered widespread attention in DeFi, with its MVP now live on testnet. This isn't just a protocol upgrade—it's a strategic leap that could reshape the future of on-chain derivatives trading.
Hyperliquid's evolution is structured around three core proposals (HIPs), each addressing critical industry pain points:
Problem: Opaque, costly listing processes on centralized exchanges force projects into unfavorable terms.
Solution: HIP-1 enables permissionless token creation on Hyperliquid (like ERC-20) for a fee (paid in $HYPE), instantly spawning a spot order book. This democratizes market access.
Problem: New tokens often suffer from illiquidity ("cold start" dilemma).
Solution: HIP-2 ("Hyperliquidity") acts as a native market maker, providing baseline liquidity for HIP-1 tokens via automated bid/ask placements.
Problem: Perpetuals—the largest crypto market—were previously gatekept by Hyperliquid's core team.
Solution: HIP-3 lets any "Builder" deploy custom perpetuals by staking 1M $HYPE (~$42M at current prices). Builders control key parameters (collateral, oracles, leverage) and earn 50% of trading fees—a lucrative incentive.
Together, these transform Hyperliquid from a DEX into a modular financial infrastructure layer.
Mechanism: The 1M $HYPE stake filters for deep-pocketed players (e.g., hedge funds), who will prioritize high-volume RWA markets like:
S&P 500 Index: A 0.1% capture of CME's $512B daily volume could yield builders $256K/day—ROI in ~164 days.
Gold/Forex: Modular design allows tailored risk parameters for diverse RWAs, akin to Aave V4's Hub+Spoke model.
Challenges:
High staking costs exclude retail.
Initial liquidity gaps for new perpetuals.
Emerging Solutions:
$HYPE LSTs: Protocols like HLAggregator could pool retail stakes, issuing liquid staking tokens (LSTs) to share fee revenue.
"Hyperliquid Wars": Expect Curve-style battles among liquidity aggregators vying for $HYPE deposits and project partnerships.
Hyperps Innovation: This feature enables perpetuals for unlisted assets (e.g., SpaceX, OpenAI) by using EMA-based funding rates instead of spot oracles.
Price Discovery: Creates reference prices pre-IPO, reducing散户 exploitation during public listings.
CEX Weaknesses: Slow product launches (e.g., Coinbase's months-long approvals for basic BTC/ETH perps).
Hyperliquid's Edge:
NFT Indices: Launched during NFT mania.
SocialFi Perps: Traded friend.tech keys at peak hype.
HIP-3 accelerates this agility, making market creation fully permissionless.
HIP-3 isn’t just an upgrade—it’s Hyperliquid’s bid to become the core infrastructure bridging DeFi and TradFi. Challenges remain (liquidity bootstrapping, global compliance), but the vision is clear: a modular, composable, and institution-ready on-chain economy.
Key Questions Ahead:
Can $HYPE’s deflationary mechanics sustain its value capture?
Will regulators tolerate decentralized Pre-IPO markets?
One thing’s certain: The race for derivatives dominance just got more interesting.
Data Sources:
Hyperliquid Docs
CME Volume Reports
Aave V4 Whitepaper
Translated for precision, preserving financial/technical nuances while optimizing readability for global DeFi audiences.
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