Decentralised Finance (DeFi) has given a way to the creation of decentralised exchanges (DEXs), which allow users to trade cryptocurrencies directly with each other, without the need of any intermediary.
With the new developments in the world of DeFi, Hyperliquid-a next generation decentralised exchange, has established itself as one of the best options for traders with its transparency, speed and advanced features. Built on its own Layer 1 blockchain, Hyperliquid combines the advantages of centralised exchanges (CEXs) with safety and autonomy of DEXs.
The platform’s HyperBFT consensus algorithm provides transaction finality in sub-seconds, allowing traders to execute orders in real time.
What is Hyperliquid?
Hyperliquid is a decentralised exchange that transforms cryptocurrency trading by combining the speed of centralised platforms with the features of DeFi. It is built on its own Layer 1 blockchain and supports rapid, safe, and scalable transactions, making it suitable for traders who want efficiency without sacrificing security or autonomy.
A basic component of Hyperliquid is its emphasis on perpetual futures contracts, which permits investors to predict prices of cryptocurrency without actually owning the assets. The on-chain order book ensures precise trade execution, providing users with a seamless and transparent experience. The exchange eliminates the gap between innovation and accessibility in the decentralised finance space.
What are the features & functions of Hyperliquid?
- High-Performance Blockchain: Hyperliquid’s Layer 1 blockchain is developed for speed and efficiency, processing up to 20,000 transactions per second. This high throughput enables rapid transaction execution, which makes it suitable for advanced trading strategies.
- On-Chain Order Book: Unlike many DEXs that depend on automated market makers (AMMs), Hyperliquid uses an on-chain order book. This allows for transparent and efficient order matching similar to centralised exchanges.
- Perpetual Trading with Leverage: With perpetual contracts, traders can gain up to 50 times leverage, increasing their exposure to asset price swings. While this feature can boost potential rewards, it also raises risk, necessitating careful risk management.
- Gas-Free Transactions: Hyperliquid provides gas-free trading, which reduces transaction costs and makes the platform easily accessible to a larger user base.
- Advanced Trading Tools: The exchange includes advanced features such as order types (market, limit, and stop-loss), which adapt to a variety of trading techniques while also improving user experience.
What are the uses of Hyperliquid Token (HYPE)?
The HYPE token is an important part of the Hyperliquid ecosystem. It serves multiple utilities on the DEX platform including staking, governance and key-trading activities.
HYPE Utilities:
- Governance: HYPE token holders play a crucial role in shaping the platform by participating in governance decisions. They have the right to vote on proposals including upgrades, feature development, and policy changes, which fosters a community-driven and decentralised ecosystem.
- Staking: Users can stake their HYPE tokens to help protect the network while receiving rewards as an incentive. This approach not only encourages long-term collaboration, but it also assures that Hyperliquid’s infrastructure remains secure and resilient over the period.
- Transaction Fees: While most of Hyperliquid trading is gas-free, complex HyperEVM operations need HYPE tokens. It is used to deal with smart contracts, dApps, and carrying out advanced transactions.
HYPE Distribution
Hyperliquid’s tokenomics focuses on community-driven development. It has a billion total supply which is distributed among contributors and participants in the growth of the platform.
- Total Supply: 1 billion
- Genesis Distribution (Airdrop): 31% distributed to early supporters and active users.
- Future Emissions & Rewards: 38.888% allocated for community incentives.
- Core Contributors: 23.8% reserved for the development team.
- Hyper Foundation Budget: 6% allocated for operational expenses.
- Community Grants: 0.3% designated for initiatives benefiting the broader community.
How to trade on Hyperliquid?
Trading on Hyperliquid is as easy as any other decentralised exchange. Here’s a quick guide before you start trading:
Step 1. Go to dApp
Visit the official Hyperliquid website and click on ‘Launch App’ button.
Step 2. Connect Your Wallet
Connect your Ethereum-compatible wallet such as MetaMask or Coinbase to the App. This connection will enable smooth interaction with the platform along with ensuring that your funds remain secure and accessible.
Step 3. Fund Your Account
Make sure you have enough funds for transaction fees and trading. If you do not have funds, transfer stablecoins to your associated wallet. Currently, it supports Arbitrum network and stablecoins like USDT, USDC and USDC.e as balanced currencies.
Step 4. Choose a Market
Use the Hyperliquid trading interface to find a trading pair or perpetual futures market that matches your strategy. The exchange provides an extensive list of popular pairs, appealing to both new and seasoned cryptocurrency traders.
Step 5. Place an Order
Use the on-chain order book to execute your preferred order type such as market, limit, or stop-loss. This technology enables exact trade execution, allowing users to successfully apply bespoke trading strategies.
Step 6. Monitor your Trade
With the Hyperliquid interface, you can track the performance of your trades in real time. Use powerful analytical tools to evaluate your holdings and make informed decisions like adjusting stop-loss levels or closing positions in response to market developments.
Step 7. Withdraw Funds
After the completion of your trades, withdraw your earnings or any remaining fund. Hyperliquid’s automated withdrawal process ensures that you have quick and secure access to your crypto holdings whenever you need them.
What are the benefits of using Hyperliquid?
- Speed and Efficiency: With sub-second transaction finality, Hyperliquid attracts traders who need quick execution.
- Transparent On-Chain Order Book: The platform’s on-chain order book promotes transparency and fairness in order matching, which increases user trust.
- Community-Centric Tokenomics: By promoting community distribution over venture capital allocations, Hyperliquid develops a user-driven ecosystem that is aligned with its users’ interests.
- Advanced Trading Features: The platform offers up to 50 times leverage, gas-free transactions, and a range of advanced trading tools to both beginners and expert traders.
Conclusion
With its comprehensive features, user-friendly interface, and fast infrastructure, Hyperliquid has reshaped decentralised exchanges. From its on-chain order book to its gas-free transactions, the platform offers a consistent experience to traders. In addition, its community-centric approach to tokenomics, as well as the innovative token (HYPE), distinguish it from other DeFi options.
Hyperliquid provides efficiency and transparency to the traders who are interested in the future of decentralised trading. The platform’s user-friendly layout and effective tools make it a great choice.
