Hyperliquid Token HYPE: An On-chain Open Financial System for High-performance L1 Blockchain

2024-12-23, 07:32

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## 🎉 Introduction
Explore Hyperliquid, a revolutionary high-performance L1 blockchain that cleverly combines the efficiency of centralized exchanges with the transparency of the blockchain. This platform, specially designed for perpetual contract order book exchanges, achieves amazing performance with its unique HyperBFT consensus algorithm: a median latency of 0.2 seconds and a processing capacity of 200000 transactions per second. Let's delve into how Hyperliquid is reshaping the DeFi landscape and paving the way for on-chain open financial systems.

## 🚀 Hyperliquid: Revolutionary High-performance L1 Blockchain
Hyperliquid represents a major leap forward in blockchain technology, cleverly combining the efficiency of centralized <a href="https://gate.io/" target="_blank" title="exchanges">exchanges</a> with the transparency of blockchain to create a truly revolutionary crypto product. Hyperliquid's Layer 1 blockchain is not a regular general-purpose chain, but is tailored specifically for high-performance perpetual contract order book exchanges, using a custom consensus algorithm called HyperBFT to fully chain margin and matching engine states. This innovative design enables Hyperliquid to achieve complete decentralization while maintaining extremely high processing speeds, comparable to the performance of centralized exchanges.

The performance metrics of Hyperliquid are impressive. Its median latency is only 0.2 seconds (99% of the time not exceeding 0.9 seconds), and it can process up to 200000 transactions per second, with a daily trading volume exceeding the $10 billion mark. These data fully demonstrate the powerful capabilities of Hyperliquid as a high-performance L1 blockchain, laying a solid technical foundation for building an on-chain open financial system.

## 💡 HYPE Token: The Core Driver of the Ecosystem
As the native token of the Hyperliquid ecosystem, HYPE token plays a crucial role in driving the development of the entire platform. The issuance of HYPE tokens adopts a unique auction mechanism to determine gas fees, with each auction lasting 31 hours and a high starting price. If unsold, the price will linearly decrease to 10000 USDC. This innovative issuance method not only ensures the reasonable pricing of tokens, but also injects sustained vitality into the ecosystem.

The value growth of HYPE token is remarkable. Starting from an initial issue price of $3.90, HYPE climbed to a peak of $27 in just two weeks. This astonishing growth rate has made Hyperliquid's airdrops considered one of the most successful and valuable in the history of cryptocurrency. The total supply of HYPE tokens is 1 billion, of which 31% have been distributed through airdrops, and the total market value has reached an astonishing $1.2 billion.

The HYPE token has a wide range of uses, including transaction fee discounts, staking rewards, and governance rights. Users holding HYPE tokens can enjoy transaction fee discounts and increase transaction profit margins. Meanwhile, users can earn rewards or provide liquidity to the trading pool by pledging HYPE tokens. In addition, HYPE token holders also have the right to vote on protocol development decisions, truly achieving decentralized governance.

## 🔧 Innovative Technology: HIP-1 and HIP-2 Standards Reshape DeFi
Hyperliquid has greatly enhanced the utility and liquidity of tokens by introducing two revolutionary standards, HIP-1 and HIP-2, bringing new possibilities to the DeFi field. The HIP-1 standard allows users to create homogeneous tokens directly connected to the on-chain spot order book, elevating the tokens to specialized financial instruments. Compared to the traditional ERC-20 standard, HIP-1 not only retains the utility of tokens, but also adds trading functionality, making it more suitable for the needs of financial assets.

The HIP-2 standard goes further by permanently binding liquidity to HIP-1 tokens at the time of issuance, fundamentally solving the issue of token liquidity. This innovative mechanism combines liquidity with token standards, ensuring a smooth trading experience that far exceeds the liquidity pool on <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>. The real-time depth feature of HIP-2 provides users with an unparalleled trading experience, greatly reducing the risk of slippage.

The combination of these two standards not only enhances the utility and liquidity of tokens, but also provides powerful tools for projects within the Hyperliquid ecosystem. Developers can use these standards to create more complex and efficient financial products, bringing users more innovative DeFi applications.

## 🌟 Highlights of the Ecosystem: HypurFun and PVP.trade
Hypurr Fun (HFUN) in the Hyperliquid ecosystem is a launch pad designed specifically for "miners", aimed at meeting the needs of crypto enthusiasts who are looking for high potential tokens and want to participate in the earliest stages. HypurFun interacts with users through Telegram bots, allowing them to purchase tokens, monitor their status, and receive reminders directly on Telegram. This innovative interaction method greatly improves the convenience and efficiency of user participation.

HypurFun uses a binding curve mechanism similar to Pump.fun to issue tokens, and potential tokens can automatically transition to the Hyperliquid spot market. Once the liquidity threshold is reached (e.g. 80% of tokens sold), the proceeds from the sale will be used to ensure listing on Hyperliquid. This mechanism not only provides a fair and transparent issuance platform for new projects, but also creates more early participation opportunities for investors.

Another ecosystem component worth noting is PVP.trade, a Telegram robot integrated into the Hyperliquid ecosystem designed specifically for social and competitive transactions. PVP.trade is particularly attractive to airdrop hunters because active trades now accumulate points, which will affect future reward distribution. Users can directly execute transactions through Telegram and support leveraged and spot trading on the Hyperliquid platform.

The social trading feature of PVP.trade allows users to view the holdings of group members, promoting collaboration and learning within the trading community. The points earned through trading will be used for the upcoming token airdrop, which incentivizes users to actively use robots for trading, further increasing the platform's activity and liquidity.

These innovative components of the Hyperliquid ecosystem not only enrich the platform's functionality, but also provide users with diverse ways to participate, thereby promoting the healthy development of the entire ecosystem. With the addition of more users and the continuous launch of new features, Hyperliquid is expected to become a leader in the DeFi field, making important contributions to the development of the permissionless financial application ecosystem.

## 📖 Conclusion
Hyperliquid, with its revolutionary L1 blockchain technology, is redefining the future of DeFi. By integrating the efficiency of centralized exchanges with the transparency of blockchain, it has achieved unprecedented performance. The successful issuance and rapid appreciation of HYPE token demonstrate the market's recognition of this innovation. The introduction of HIP-1 and HIP-2 standards, along with ecosystem components such as Hypurr Fun and PVP.trade, further expanded the platform's functionality and appeal. Hyperliquid is paving the way for permissionless financial applications and is expected to become a new benchmark in the DeFi field.

Risk Warning: The <a href="/price" target="_blank" class="blog_inner_link">crypto market</a> is volatile, and technological innovation may face unknown challenges. Investors should carefully evaluate the risks.

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<div>Author:**Joy Z.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. All investments carry inherent risks; prudent decision-making is essential.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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