What Is Hyperliquid (HYPE)?

Hyperliquid is a decentralized exchange (DEX) built on its proprietary Layer-1 blockchain, Hyperliquid L1, offering traders low fees, fast transactions, and advanced trading tools such as perpetual derivatives. Launched in 2023, the platform combines the speed and efficiency of centralized exchanges (CEXs) with the transparency and security of decentralized finance (DeFi). By eliminating common inefficiencies in DeFi trading, Hyperliquid aims to provide an optimal experience for both retail and institutional traders.

Who Created Hyperliquid

Hyperliquid was co-founded by Jeff Yan and Iliensinc, both alumni of Harvard University. Jeff Yan began his career at Hudson River Trading, a prominent high-frequency trading firm, before venturing into the cryptocurrency space. The founding team comprises individuals with backgrounds from esteemed institutions such as MIT and Caltech, and professional experience at companies including Google, Citadel, and Nuro.

How Does Hyperliquid Work

Hyperliquid operates on Hyperliquid L1, a custom-built Layer-1 blockchain optimized for high-speed trading. The platform supports up to 20,000 transactions per second, ensuring seamless execution and low-latency performance, rivaling traditional centralized exchanges.

One of Hyperliquid’s standout features is its fully on-chain order book, which enhances transparency and security by recording all transactions directly on the blockchain. Unlike many decentralized exchanges that rely on off-chain mechanisms, Hyperliquid ensures tamper-proof trade execution, reducing risks associated with intermediaries and potential manipulation.

Additionally, the platform eliminates gas fees, significantly lowering trading costs and increasing accessibility for users. This makes it an attractive option for traders of all levels, from casual retail participants to high-volume institutional investors.

Looking ahead, Hyperliquid plans to expand its platform by introducing a decentralized listing mechanism, allowing users to list project tokens through staking and community voting—a move that further decentralizes governance and enhances user participation.

Hyperliquid Tokenomics

Hyperliquid’s ecosystem is powered by its native token, HYPE, which was launched via airdrop in 2024. The total supply of HYPE is capped at 1 billion tokens.

The initial token distribution, known as the Genesis Event, took place on November 29, 2024, during which 31% of the total supply (310 million tokens) was airdropped to eligible users, with all airdropped tokens being fully unlocked at the time of distribution.

The remaining token allocation is structured as follows:

Future Emissions & Community Rewards – 38.9%
Core Contributors – 23.8%
Hyper Foundation – 6%
Community Grants – 0.3%
HIP-2 Allocation – 0.01%

Hyperliquid has notably avoided private investors, ensuring that no external entities have disproportionate influence over the project. Team members' token allocations are subject to a one-year vesting period post-token generation, reinforcing the project’s long-term commitment to sustainability.

HYPE plays a crucial role in the governance and security of the Hyperliquid ecosystem. Token holders can stake HYPE to support network validation, selecting validators and earning staking rewards for their contributions.

At the launch of the staking program, 300 million HYPE tokens were staked by Hyperliquid itself, with an additional 7 million tokens contributed by users within the first hour, distributed across 16 validators.

The next scheduled token unlock event is set for November 29, 2025, during which 216,580 HYPE tokens (0.02% of the total supply) will be released.

How To Trade Hyperliquid (HYPE) on Flipster

Sign up for an account on the Flipster website or by downloading the Flipster app (Android or Apple).
Click the [Trade] tab.
Search for HYPE and click on it.
Select the leverage (up to 10x).
Select either a Trigger Order or Market Order.
Input the amount of crypto you wish to trade, or select a percentage of your available funds to use.
Once you have confirmed the details, click the [Long] or [Short] button to open a position.