DeFi Buyback War: Hyperliquid vs Uniswap

Published: 2025-11-12 08:30:16 |

DeFi buyback competition heats up as Uniswap and Hyperliquid deploy contrasting token burn models. On Nov 10, 2025, Uniswap activated its long-awaited fee switch under the UNIfication proposal, routing 0.05% fees on v2 and up to 0.05% on v3 into a burn contract. The plan includes a 100 million UNI treasury burn and merging L2 sequencer fees. Hyperliquid’s automated system channels 97% of trading fees into its on-chain buyback vault, spending $645M to repurchase 21.36M HYPE tokens by October. In a major stress test during the $19B liquidation on Oct 10, Hyperliquid processed half of liquidations without downtime. As of November, HYPE’s $11B market cap and $95M monthly burn outpace UNI’s $460M annual burn potential. Uniswap’s governance-driven model offers transparency and adaptability; Hyperliquid’s code-driven engine delivers speed and predictability but relies on closed-source controls. This DeFi buyback war underscores a shift towards sustainable tokenomics and deflationary mechanisms, setting new benchmarks for value capture in decentralized exchanges.

Bullish

The emergence of aggressive buyback models in leading DeFi exchanges signals growing sustainability and deflationary pressure on token supplies. Historically, deflationary token mechanisms, such as Binance’s BNB burn or Ethereum’s EIP-1559, have bolstered price performance by reducing circulating supply. Hyperliquid’s rapid, automated buyback engine and Uniswap’s newly activated fee-to-burn system reinforce this trend, likely driving up demand for UNI and HYPE. In the short term, traders may anticipate further price appreciation as these protocols execute substantial burns, creating a bullish momentum. Over the long term, consistent deflationary tokenomics can underpin stable value appreciation and market confidence, potentially setting a new standard for decentralized exchange token models. However, traders should monitor governance risks on Uniswap and centralization concerns on Hyperliquid before allocating capital.