Hyperliquid Announcements

Based on stalequant's methodology (https://github.com/stalequant/stalequant.github.io/blob/main/build_delisting_recos.py) and community request, max leverage was increased for PAXG (10x), PUMP (10x), and ASTER (5x) and reduced to 3x for BIGTIME, GRIFFAIN, NXPC, SAGA, SCR, and SOPH. Note that max leverage decreases do not affect the liquidation price of open positions until they are modified. To reduce positions that exceed initial margin requirements under the new max leverage, use reduce-only orders. The first non-reduce-only order that modifies a position will subject it to the new max leverage and maintenance margin requirements. As a reminder, maintenance margin is half of the initial margin at max leverage. E.g., if max leverage is 10x, the maintenance margin is 5%.

On Hyperliquid, there is no listing fee, no listing department, and no gatekeepers. Spot deployment on Hyperliquid is permissionless. Anyone can deploy a spot asset by paying a gas fee in HYPE. Deployers can choose to receive up to 50% of trading fees on their spot pairs. Everything is transparent and verifiable onchain. The full defi lifecycle includes building a project, launching a token, and trading that token. Every step of that journey can be done permissionlessly on Hyperliquid.

Weekly update Product & Tech + HIP-3 was enabled on mainnet. There is no immediate change for users. Deployers who meet the onchain requirements can deploy perps for trading once ready. See Docs for more: https://hyperliquid.gitbook.io/hyperliquid-docs/hyperliquid-improvement-proposals-hips/hip-3-builder-deployed-perpetuals + Hyperliquid had zero downtime, no latency issues, and no bad debt during the weekend's market volatility + Added filters by quote asset (USDC, USDH, USDT) for Spot in the token selector Trading + Reached new ATH in 24h volume: $32B + MET and MON hyperps were listed New Teams on the HyperEVM + Chainlink released a HyperEVM testnet RPC: https://x.com/chainlink/status/1976377162304287117 New Teams on HyperCore (in no particular order) + MetaMask added support for perps trading through Hyperliquid: https://x.com/metamask/status/1975910330669957326 + Rainbow wallet integrated perps trading through Hyperliquid: https://x.com/rainbowdotme/status/1975234405074673691 + Supercexy added conditional orders using 2 different assets (e.g., If BTC >$120k, close ETH long): https://x.com/try_supercexy/status/1975850627562373528 Upcoming Community Events + Hyperliquid UAE is hosting a meet-up on Oct 16 in Dubai: https://x.com/Hyperliquidae/status/1976604861618909565 + Hyperliquid Australia is hosting a meet-up on Oct 23 in Melbourne: https://x.com/HyperliquidAu/status/1975776248816410856

During the recent market volatility, the Hyperliquid blockchain had zero downtime or latency issues despite record traffic and volumes. HyperBFT consensus and execution handled the spike in throughput gracefully. This was an important stress test proving that Hyperliquid's decentralized and fully onchain financial system can be robust and scalable. The system's risk and margining implementation functioned as designed, ensuring platform solvency throughout the extreme volatility.

By community request, Hyperliquid has listed MET-USD hyperps. You can now long or short the unlaunched Meteora token with up to 3x leverage. As a reminder, hyperps do not rely on any external data for the oracle price. Hyperps trade like perpetual contracts that users are familiar with, but do not require an external spot or index oracle price. Instead, the funding rate is determined relative to a moving average of the hyperp mark price. Trading is on low leverage and isolated margin only. Beware of low liquidity, high volatility, potentially extreme funding, and increased liquidation risk. Note: MET-USD will convert to a vanilla perp upon CEX spot listing. See Docs for more. MET-USD is a hyperp contract that poses higher than normal risk. Do not trade contracts you are unfamiliar with and do not understand the risks for. Read the Docs to learn more about the hyperp mechanism. NFA. https://app.hyperliquid.xyz/trade/MET

Perps trading is now live on MetaMask, powered by Hyperliquid https://metamask.io/news/introducing-metamask-perps

By community request, Hyperliquid has listed MON-USD hyperps. You can now long or short the unlaunched Monad token with up to 3x leverage. As a reminder, hyperps do not rely on any external data for the oracle price. Hyperps trade like perpetual contracts that users are familiar with, but do not require an external spot or index oracle price. Instead, the funding rate is determined relative to a moving average of the hyperp mark price. Trading is on low leverage and isolated margin only. Beware of low liquidity, high volatility, potentially extreme funding, and increased liquidation risk. Note: MON-USD will convert to a vanilla perp upon CEX spot listing. See Docs for more. MON-USD is a hyperp contract that poses higher than normal risk. Do not trade contracts you are unfamiliar with and do not understand the risks for. Read the Docs to learn more about the hyperp mechanism. NFA. https://app.hyperliquid.xyz/trade/MON

Weekly update Product & Tech + See the posts above for Hyperliquid Labs' views on aligned quote assets, with a streamlined version here: https://hyperliquid.gitbook.io/hyperliquid-docs/hypercore/aligned-quote-assets + The onchain implementation for aligned quote assets is live on testnet, per https://discord.com/channels/1029781241702129716/1208476333089497189/1424066531389607947 Hypurr NFTs + Hypurr NFTs were deployed on the HyperEVM and distributed to Genesis Event participants. The collection can be viewed on https://drip.trade/collections/hypurr and https://opensea.io/collection/hypurr-hyperevm + The goal of the Hypurr NFT collection was to share a memento with those who believed in and contributed early on to Hyperliquid’s growth. Each NFT is unique and captures the different moods, hobbies, tastes, and quirks of the Hyperliquid community, as depicted by Hypurr Trading + 2Z and ZEC perps were listed + 2Z spot trading, deposits, and withdrawals went live via Unit Protocol New Teams on the HyperEVM (in no particular order) + Rysk Finance PURR covered calls: https://x.com/ryskfinance/status/1972546675635048497 + Drip.Trade Hypurr NFT trading: https://x.com/drip__trade/status/1972338669991387601 Token2049 Week Thank you to everyone who organized events and flew all the way to SG to join the community events this past week. We enjoyed meeting many of you in-person. There were too many great events to track, but a few highlights were: + Hyperliquid Labs event in Sentosa: https://x.com/HyperliquidX/status/1974077580065300962 + HypurrCo event: https://x.com/kirbyongeo/status/1974274439245389902 + Token2049 fireside chat and defi panel with Jeff: https://x.com/HyperliquidX/status/1973622266601861139 Other Community Events + Hyperliquid Malaysia is hosting a meet-up focused on opsec on Oct 16 at Symphony Square, Petaling Jaya: https://x.com/hyperliquid_my/status/1974746647310868757 + Hyperliquid Italia hosted a meet-up in Rome: https://x.com/Hyperliquidita/status/1972390984886669737

Offchain requirements, enforced through onchain quorum of validator votes: 1. The stablecoin is 1:1 backed by cash, short-term US treasuries, and tokenized US treasury or money market funds to the extent permitted under applicable regulatory frameworks. Aligned issuers must also provide par redemption at all times, with a publicly disclosed and timely redemption service consistent with their applicable regulatory regime. These conditions can be revisited by the validators, in the spirit of building a regulatorily compliant chain for payments and banking opportunities. The guiding requirement is that a large percentage of the world's circulating dollars could compliantly be converted to the aligned stablecoin in the context of existing businesses and use cases in the financial world. 2. The full supply is natively minted on HyperEVM. Any supply on other chains or offchain must first be minted on HyperEVM as the source chain. 3. The deployer can only deploy assets that directly support the aligned stablecoin. For example, the underlying treasuries could be issued onchain. The net effect is that the deployer must share half of its offchain yield income through the existence of the aligned stablecoin. The deployer and its affiliates may not receive any economic benefits tied to conversion of the aligned stablecoin into another asset. "Benefit" includes but is not limited to revenue share, order-flow payments or any form of rate-linked compensation. 4. The team building an aligned stablecoin must be independent and dedicated to building on Hyperliquid.

Revised condition: The stablecoin is 1:1 backed by cash, short-term US treasuries, and tokenized US treasury or money market funds to the extent permitted under applicable regulatory frameworks. Aligned issuers must also provide par redemption at all times, with a publicly disclosed and timely redemption service consistent with their applicable regulatory regime. These conditions can be revisited by the validators, in the spirit of building a regulatorily compliant chain for payments and banking opportunities. The guiding requirement is that a large percentage of the world's circulating dollars could compliantly be converted to the aligned stablecoin in the context of existing businesses and use cases in the financial world. 2. Full supply natively minted on HyperEVM. Any supply on other chains or offchain must first be minted on HyperEVM as the source chain. There was feedback here that this is overly restrictive technically. To clarify, crosschain transfers through any bridging protocols would not violate this requirement, as long as the supply is first minted on HyperEVM. Many chains use a designated source chain for minting, while offering a seamless multichain experience for users. The motivation behind the requirement is not restriction, but rather ease of technical accounting on the protocol level. It is difficult for validators to report the crosschain supply of a token, but it is more straightforward to slash on the condition that all supply must be minted first on HyperEVM. As long as this requirement is met, the protocol yield share can be computed as part of onchain execution. 3. The issuer exclusively issues this one asset. The issuer may work on other products, but they must synergize with the aligned stablecoin. Examples include neobanks and payments denominated in the stablecoin. & 4. The issuer cannot benefit from any other form of yield income or asset issuance. One clarification here is that "issuer" can be distinct from the "deployer." Many teams will build on top of technical infrastructure for issuance. Here and elsewhere, "issuer" has been replaced with "deployer" to broaden the scope. The intention behind this requirement is that the deployer shares half of its yield income with the protocol, and focuses its entire effort on supporting the aligned stablecoin. Revised condition (for 3&4): The deployer can only deploy assets that directly support the aligned stablecoin. For example, the underlying treasuries could be issued onchain. The net effect is that the deployer must share half of its yield income through the existence of the aligned stablecoin. The deployer and its affiliates may not receive any economic benefits tied to conversion of the aligned stablecoin into another asset. "Benefit" includes but is not limited to revenue share, order-flow payments or any form of rate-linked compensation. In sum, the updated requirements would be as follows: Onchain requirements: 1. Enabled as a permissionless quote token 2. 800k additional staked HYPE by deployer, meaning a total of 1M staked HYPE including the 200k staked HYPE for the quote token deployment. This is to give builders and users assurance to use the aligned stablecoin. 3. 50% of the deployer’s offchain reserve income must flow to the protocol. Validators may vote to update the calculation methodology as regulatory standards evolve. There will be follow-up work on the precise definition of risk-free rate, which will be updated according to an onchain stake-weighted median of validator reported values. A CoreWriter action will allow the deployer to reflect the exact minted balance from HyperEVM directly to HyperCore, which will allow a fully automated fee share mechanism as part of L1 execution.

Two responses. Firstly, the benefits of aligned stablecoins are substantial but by no means a requirement for a successful stablecoin deployment. Furthermore, many stablecoins that may not qualify for alignment will naturally have their own incentivization opportunities coming out of a much higher top-line yield. The opportunity exists for many stable assets to thrive and synergize. Secondly, even if a project insists on "aligned or nothing" and deprioritizes deployment on Hyperliquid as a result, the tradeoff can still be worthwhile for the protocol. The sheer size of the stablecoin opportunity as part of housing all finance is worth more than any short term metric boosts such as trading volume or TVL incentivized by specific stablecoin deployers. As I once tweeted, “When you see a 100x, you drop everything to make that a reality.” I hope that as Hyperliquid grows, we continue to dream big and recognize that the largest growth opportunities involve taking bets on talented new teams building in uncharted territory. 3. Users will naturally choose the most aligned stablecoins, so the offchain conditions are not necessary. While this would be true in an ideal state of the world, it's important to be realistic about the probability of it playing out. Such an outcome depends on 1) competent deployers choosing to remain aligned with the protocol and 2) users doing research, correctly identifying the most protocol-aligned stablecoin, and actively choosing to use it. Neither of these conditions are guaranteed. The protocol unfortunately does not have the luxury of experimentation here, and given the size of the opportunity, it would be too risky to leave this level of uncertainty in the outcome. Any aligned stable that achieves massive success will owe its initial distribution to the protocol. It is only fair that deployers seeking this benefit should recognize and commit upfront to sharing back with the protocol and community. 4. The requirements kill the prospect of alternative stablecoins. This is not the intention and should have been clearer in the first draft of the proposal. The projected market for regulated stablecoins is orders of magnitude larger than that for alternative stablecoins. Of course, there is no guarantee on this outcome, but much of Hyperliquid's success has come from building infrastructure with real-world, practical context. Furthermore, alternative stablecoins usually have different yield characteristics that can offset the lack of trading benefits from alignment. Given this context, here are some point-by-point criticisms, responses, and revisions to the offchain conditions: 1. Fiat USD-backed stablecoin Several teams want to deploy delta-neutral strategies or other forms of higher yielding synthetic dollar assets. While Hyperliquid as a protocol does not have value judgment on various assets, regulatory conditions do. The payments, banking, and other regulated dollar opportunities at the moment are anchored by the GENIUS Act. Regulation is fluid, though, so the condition will be revised to account for this. Other teams suggested clarification that "fiat" may include US treasuries in addition to cash. Any revisions expanding the allowed yield-bearing backing assets would require an update to the protocol’s alignment rules to ensure that 50% of the deployer’s offchain reserve income continues to flow to the protocol. As noted above, higher yielding stable assets inherently have more incentives available to share for each unit of additional supply.

The following post is from Hyperliquid Labs. Thanks to everyone who shared thoughtful responses to the proposed aligned stablecoins proposal. As a reminder, offchain conditions are ultimately voted upon by validator quorum, as any such conditions are not able to be reflected directly in protocol execution. Like on most other blockchains, independent validators on Hyperliquid achieve consensus on a self-contained state machine’s execution. This state machine’s evolution is entirely onchain. In the case of the offchain conditions for an aligned stablecoin, this evolution is driven by validator vote. The following reflect views expressed by Hyperliquid Labs after careful consideration about the best outcome for the protocol and users. There was pushback on each one of the offchain criteria. Before discussing the detailed points, it is helpful to refine the overarching purpose of the proposal. At its core, Hyperliquid is a permissionless protocol. Unlike a centralized entity that can enter into contracts and agreements, a protocol can only reflect neutral rules. Hyperliquid's rules should optimize for the long-term prosperity of users, while adhering to the principles of fairness and transparency. The grand vision: Stablecoins are increasingly recognized as an important development and significant opportunity, with traditional finance embracing the technology as an upgrade to the digital dollar. It's unclear what the exact outcome will be: payments, neobanks, corporate treasuries, or something else entirely. But it is clear that there is an opportunity to leverage Hyperliquid's unique distribution to become the stablecoin chain of choice for the next billion users. Alignment as a protocol feature is to ensure that stablecoin empires built on Hyperliquid do not simply take advantage of Hyperliquid as a stepping stone, but rather build and grow with the protocol in perpetuity. Alignment should carefully thread a needle. It should not unnecessarily box out deployers of other stablecoins or other assets who want to expand into Hyperliquid as part of a multifaceted growth strategy. It should preserve a level playing field for compliant alternatives. However, it should be firm, opinionated, and take a bold stance, given what is at stake for the protocol. The blockchain that houses the future of finance should also be the premier stablecoin chain. The general feedback, not tied to specific points: 1. Offchain requirements are overly restrictive. The protocol should only enforce strictly onchain requirements such as staking requirements and yield share. Onchain requirements are almost always preferable to offchain ones. They are simpler, objective, and do not require validator enforcement. However, the real world is inherently nuanced and complex. Given the opportunity size of becoming the premier stablecoin chain and the difficulty with associated yield being fully offchain, the protocol must compromise with a system that accomplishes the goal of true alignment. The only obvious way to accomplish this goal is through validator quorum enforcing offchain conditions. That being said, the feedback is duly noted that conditions should be as simple as possible while accomplishing these goals. 2. The requirements are too strict and will dampen the quality of projects ready to immediately deploy on Hyperliquid.