Hyperliquid HIP-3 Enables Permissionless Perpetual DEXs
Hyperliquid HIP-3 upgrade will let anyone launch permissionless perpetual futures DEXs on its Layer-1 HyperCore blockchain. Deployers stake 500,000 HYPE tokens and bid in Dutch auctions for each additional asset after three free slots. Each new perpetual futures DEX can customise order books, oracles, margin settings and support up to 20× leverage with diverse crypto and traditional collateral.
Hyperliquid HIP-3 introduces on-chain order books and reduces gas fees via Dutch auctions every 31 hours. Future updates will add cross-margining and streamlined asset reservations. Staking HYPE tokens offers fee discounts, referrals and potential buybacks.
Analysts say HIP-3 poses a challenge to Binance after its recent outages. Hyperliquid maintained 100% uptime and zero bad debt during October’s market crash. If 100 exchanges go live, HIP-3 could lock 20% of HYPE’s circulating supply, boosting liquidity and validator-backed security. With HYPE down 15% to $38.78 and BNB down 10%, the success of HIP-3 may attract traders seeking 24/7, zero-middleman perpetual trading and reshape market share.
Bullish
The Hyperliquid HIP-3 upgrade can boost HYPE token demand by requiring significant staking, locking up supply and offering fee incentives. Short-term traders may respond positively to increased liquidity and new DEX launches, driving buying pressure. Long-term, permissionless perpetual futures DEXs and planned cross-margin features could expand Hyperliquid’s ecosystem and support HYPE’s value. These factors suggest a bullish outlook for HYPE’s price.