A simple explanation of Hyperliquid's HIP-3 upgrade today
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A simple explanation of Hyperliquid's HIP-3 upgrade today
Allow anyone to deploy perpetual contract markets.
Navigating Web3 tides with focused insightsAuthor: nairolf
Translation: TechFlow
What is HIP-3?
Below is @HyperliquidX's explanation of HIP-3 in very simple terms.
HIP-3 allows developers to deploy perpetual contract markets on HyperCore.
To ensure market quality and protect users, deployers must stake 500,000 HYPE. If malicious market activity occurs, validators have the right to slash the deployer's stake.
You should already be familiar with HyperCore, right? It includes the state of margin and matching engines.
Simply put, it's Hyperliquid's exchange backend.
HIP stands for Improvement Proposals. In short, it's how the protocol makes changes.
The main purpose of HIP-3 is to allow anyone to deploy perpetual contract markets.
Currently, the process of adding new tokens to the perpetual exchange is permissioned.
This means the core team decides which tokens to add based on demand, trading volume, and other criteria.
HIP-3 allows anyone to list their chosen token. Yes, literally any token.
However, there are some restrictions. Only one token can be listed every 31 hours. And you need to win deployment rights through a Dutch auction (using HYPE).
You need to stake 500,000 HYPE and are responsible for setting up the market.
This means choosing an oracle, defining leverage limits, handling settlement logic, and ensuring everything runs securely.
The 500,000 HYPE serves as a security mechanism and a way for the protocol to protect itself.
If strange manipulation occurs in your token market, validators can vote to slash your HYPE.
In short, this HYPE ensures that the token you list is legitimate.
As the token deployer, you can take 50% of the market's total fees. You can even set additional custom fees.
In other words, you can earn a portion of the fees from user trades on the token you've listed.
HIP-3 enables anyone to list tokens on the Hyperliquid perpetual exchange.
To ensure market safety, a 500,000 HYPE stake is required, which may be slashed if suspicious behavior occurs.
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