#hip-3

➤ Hyperliquid has evolved with HIP-3 and HIP-4, transforming into a platform for deploying diverse markets like perpetual futures for stocks and commodities, and prediction markets. ➤ HIP-3 allows external builders to launch perpetuals with significant staked capital, offering flexibility in asset choice and oracles, while HIP-4 introduces event contracts with deterministic settlement, aiming to compete with existing prediction platforms. ➤ Despite early success and expansion into non-crypto assets, risks include deployer concentration, regulatory uncertainty, and oracle dependency, with the platform's future success hinging on wider adoption and regulatory clarity.

➤ Hyperliquid's HIP-3 upgrade enables permissionless deployment of perpetual futures markets for a wide range of assets, including tokenized equities, commodities, and indices. ➤ Open interest on HIP-3 markets has surged, with tokenized equities and commodities now dominating trading volume, leading to comparisons with AWS infrastructure. ➤ The growth of HIP-3 markets, particularly those offering exposure to U.S. equities without KYC, raises significant regulatory questions as institutional interest grows.

➤ RWA perpetuals are experiencing record volume, driven by DeFi wrappers like HIP-3, as centralized exchange (CEX) trading cools. ➤ These wrappers offer advantages such as faster listings, unified margin, and composability, attracting both crypto-native traders and macro desks. ➤ Key risks include oracle reliability, market microstructure, and regulatory uncertainty, while CEXs still lead in overall liquidity and fiat rails.

➤ Hyperliquid's HIP-3 initiative has successfully launched stock-linked and S&P 500 perpetual contracts on-chain, expanding decentralized finance beyond cryptocurrencies. ➤ This expansion has driven cumulative trading volume past $200 billion, highlighting the growing trend of traditional financial products being integrated into decentralized ecosystems. ➤ The move signifies a blurring line between traditional finance and DeFi, offering greater transparency and accessibility, though regulatory uncertainty remains a challenge.

➤ Hyperliquid's HIP-3 framework has enabled builder-deployed perpetual futures markets, achieving significant volume and market share against global exchanges, including Binance. ➤ These markets offer trading on a diverse range of assets, including tokenized equities, synthetic perps on private companies, and commodities, expanding beyond traditional crypto derivatives. ➤ Despite concentrated growth driven by a few deployers and a high staking requirement, Hyperliquid is poised for further expansion with upcoming features like outcome-based contracts.

➤ Hyperliquid's RWA open interest has surpassed $3 billion, marking a new all-time high and extending a consistent monthly record streak since October 2025. ➤ This growth is attributed to HIP-3, a dedicated RWA perpetuals market on Hyperliquid's proprietary L1 chain, attracting traders seeking leveraged access to tokenized off-chain assets. ➤ While impressive, the concentration of open interest on a single venue raises concerns about risk, and future growth may depend on expanding product breadth and navigating regulatory landscapes.

➤ Hyperliquid is experiencing significant growth, capturing 44% of all perpetual DEX volume and surpassing $3 billion in RWA open interest, driven by its HIP-3 upgrade. ➤ The platform is expanding its ecosystem beyond derivatives with the introduction of prediction markets (HIP-4) and benefits from a HYPE token burn mechanism that reduces circulating supply. ➤ This growth indicates a strong shift towards deeper liquidity, faster execution, and diversified use cases, attracting both retail and institutional flows in onchain finance.

➤ Hyperliquid, a decentralized exchange, has achieved a record 6.9% share of perpetual futures open interest against centralized exchanges. ➤ This growth is primarily driven by its HIP-3 markets, which allow trading on real-world assets like gold, oil, and S&P 500 futures, contributing significantly to open interest. ➤ Despite its success, the article notes concentration risks within the DEX space and novel risks associated with RWA trading, such as price feed reliability and regulatory classification.