The decentralized exchange Hyperliquid has announced an update allowing third parties to independently launch their own perpetual swap contracts on the platform.
Hyperliquid Improvement Proposal 3 (HIP-3) will be effective starting Monday, as stated in the official Hyperliquid Discord channel. This update introduces permissionless, builder-deployed perpetual futures contracts, representing a significant advancement toward fully decentralized perpetual futures listings.
HIP-3’s implementation on the decentralized exchange (DEX) permits anyone who stakes 500,000 HYPE ($20.5 million at the time of writing) to deploy their own perpetual swap contract with independent margining, order books, and parameters.
Deployers “can set a fee share of up to 50%” beyond the base fee rate and are accountable for market definition, which includes the oracle and contract specification, as well as market management, such as establishing oracle prices, leverage limits, and settlement if necessary.
Perpetual swaps are futures derivative contracts that mirror the price of an underlying asset but do not have an expiration date, allowing traders to maintain leveraged long or short positions indefinitely. Their prices remain close to the spot market through a funding rate mechanism that regularly transfers payments between long and short positions.
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Long in the works
HIP-3’s minimum viable product implementation has been operational on the testnet since late September, with a network upgrade occurring on Monday, enabling it on the mainnet. Blockchain infrastructure firm QuickNode noted in its analysis that HIP-3 enhances market responsiveness to builder needs:
“HIP-3 replaces gatekeepers with code so teams can ship markets as quickly as they can design them while ensuring quality and user safety through on-chain rules and incentives.”
This proposal eliminates listing fees commonly seen on centralized exchanges, lowers fixed costs by sharing infrastructure, and enables builders to recover costs through fee-sharing.
“Execution quality improves while transaction costs decrease, driving more volume into HIP-3 markets, further subsidizing builders through fee revenue,” QuickNode stated in its analysis.
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Hyperliquid evolves into financial infrastructure
Blockchain data layer Chainsight also discussed in an analysis that HIP-3 transforms the existing model, where only exchange operators can list assets. According to Chainsight, this transition turns “Hyperliquid from a singular exchange into permissionless financial infrastructure.”
Chainsight anticipates this shift will pave the way for new asset classes in decentralized finance (DeFi), as “virtually any data feed can now become a tradable market.” This includes realized volatility, pre-IPO company valuations, traditional forex pairs, stock indices, and exotic derivatives like correlation swaps.
Synthetic markets protocol Ventuals also plans to utilize HIP-3 for exposure to the price movements of private companies. The company stated that “by creating perpetual futures (or perps) tied to private company valuations, Ventuals enables anyone to express a view on the trajectory of companies they follow closely.”
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