What is Hyperliquid? The decentralized exchange with its own blockchain

Decentralized perpetual Futures -Exchange Hyperliquid has gone from a market maker to one of the largest crypto projects in the world.

Hyperliquid has incorporated trillions of dollars in volume in its lifetime and is now the third largest decentralized exchange in crypto-all-sector veterans pancakeswap and uniswap.

It was the city’s conversation in 2025, but what exactly is Hyperliquid? Why do people give so much about it? And how did it become one of the largest projects in Crypto?

What is Hyperliquid?

Hyperliquid is one Decentralized exchange Specialized in eternal futures trade, built on top of his own special Layer-1 network.

The indigenous token hype has been a roaring success, that a top 20 cryptocurrency becomes less than a year after launch due to market capitalization.

Why do people care about hyperliquid?

Simply put, hyperliquid makes it easier for traders to speculate about the price fluctuations of cryptocurrenciesThanks to low costs, a large amount of available assets – and of course degenerate levels of leverage.

Costs about hyperliquid vary from 0.07% for low volume-drawer spotage, especially up to 0% for high volume perp maker costs, according to the hyperliquid docs. Taker traders are when the liquidity is removed from the market, while makers add liquidity to the market. For comparison, Uniswap applies a reimbursement of 0.3% on transactions.

Just like a centralized exchange, users can place transactions on most major coins, regardless of which chain they are. Bitcoin, Ethereum, Dogecoin, Trump – all tradable in one place. With hyperliquid, traders can use leverage of up to 40x. For comparison, the maximum leverage that Binance offers is 20x and you must meet certain requirements to access this layer.

As a result, it has become a battlefield for degenerate wars between whales and the crypto community.

In particular, in March 2025, a whale opened a 40x leverage with a value of $ 521 million against Bitcoin, which led to everyday traders working together in an attempt to liquidate whale. Spectators were able to view every movement on the Hyperliquid Block Explorer, which openly shows the detained positions of a wallet, whether it is in profit and the liquidation prize. The whale won in this case and dumped the position for a win of $ 3.9 million.

All these combined factors have led Hyperliquid to attract more than 700,000 total users since the launch of 2023 and collect a total volume of $ 2.7 trillion, according to his Statistics dashboard.

Hyperliquid’s origin story

Hyperliquid was completely financed and was built by a team of only 11 people, founder Jeff Yan told Wubllockchain in August 2025. He said that the project has rejected venture capital financing because it gives a fake feeling of progression; Instead, the team wanted to concentrate on ‘real progress’ by giving value to users – non -investors.

Yan Crypto started to trade in 2020 and founded a market company, the earliest form of hyperliquid. Two years later he told the When shift takes place Podcast, the high -frequency market offering, had effectively ‘covered’, while he wanted to grow the project.

That is when the centralized exchange of Sam Bankman-Gefuurte FTX imploded by using customer funds to cover losses at his trading company Alameda Research. When a critical mass of users tried to withdraw their money, their money was not there and the exchange was caught with his pants. Bankman-Grieduurd was found guilty of seven counts of fraud, money laundering and conspiracy, which resulted in a 25-year prison sentence.

“Suddenly people had a real reason not to trust centralized exchanges – and it was not only Mumbo Jumbo intellectual things, they literally lost all this money, and it was because of centralized exchanges,” said Yan the podcast and called it a “light bulb moment” and called it a “glowing camp” ‘light bulb moment’ and called it a ‘light bulb moment’.

The collapse of FTX, Yan said, was the catalyst who made hyperliquid “go all in” when building a decentralized exchange.

In February 2023, hyperliquid’s Mainstet closed Alpha Went live. In the first five months, it claimed To have attracted 4,000 users, with 28 different assets available for acting. It hit the entire mainnet August of the same year.

Hyperliquid experienced explosive growth after its $ 1.6 billion AirDrop in November 2024 – one of the largest crypto -Airdrops of all time. Armed with Goodwill among traders, Hyperliquid became the conversation of the city that 2025 started.

It is not all smoothly sailed for the platform. In December 2024, Hyperliquid attracted unwanted attention from North Korean hackers who sniffed at vulnerabilities. A few months later it was confronted with a liquidation crisis and he was forced to scrap a Solana -Meme Munt when a trader wages that the hyperliquid foundation would be forced to cover some losses.

The incident released concern about how the exchange used heavy lifting tree positions – with Gracy Chen, CEO of centralized Exchange Bitget, assertion It can be “FTX 2.0”.

The future of hyperliquid

Since these early growing pains, Hyperliquid has been proven relatively drama-free and has quickly established itself as a player in the crypto room.

From this letter, according to Defillama, it has locked the eighth largest Defi-Total value of every low-1 network of chains such as Aptos, Avalanche and Linea. It also processes the third highest monthly trade volume of each decentralized exchange, by Defillama.

Of stablecoins One of the dominant stories in 2025 is whether Hyperliquid would inevit his own Stablecoin inevitably was the subject of intense speculation.

Hyperliquid -founder Yan said in the Wubllockchain Interview that the Hyperliquid Foundation, the entity that supports the development of the Hyperliquid Blockchain and its ecosystem would not publish its own Stablecoin.

In September 2025, however, the foundation opened entries for teams to publish a “hyperliquid-released” Stablecoin, USDH. It attracted to presenting major players such as Ethena, Paxos and Sky, but eventually went to a newly formed company in native markets. With USDH now live and trade, Hyperliquid now has a stablecoin that has devoted half of its income to a protocol-controlled buy-back schedule.

Now Hyperliquid is confronted with direct competition from the emerging aster-decentralized exchange, which offers higher levels of leverage and has the support of Binance co-founder Changpeng “CZ” ZHAO.

At the time of publication, Hyerliquid is paramount in terms of token valuation and trade volume – but how long will that take?