What is Hyperliquid and HYPE token?

Hyperliquid is a next-generation decentralized trading platform and Layer-1 blockchain.

Hyperliquid built on its own high-performance Layer-1 blockchain enabling high throughput.

It uses a novel consensus mechanism called HyperBFT, capable of confirming up to 200,000 transactions per second using Byzantine Fault Tolerance. Transactions are finalized in less than a second, making it ideal for fast-paced trading.

It designed to offer traders low fees, fast transactions, and advanced trading tools especially perpetual derivatives.

Hyperliquid offers a good trading experience by combining the speed and user-friendly features of centralized exchanges with the security and transparency of decentralized technology.

Hyperliquid supports trading over 100 assets, including spot markets and perpetual contracts, and allows users to provide liquidity via community-managed pools.

The HYPE token was launched via a community-driven airdrop in 2024, bypassing venture capital involvement.

HYPE token is the native utility and governance token of the Hyperliquid ecosystem. It serves several key functions including:

• Utility: HYPE is used to pay for transaction fees on the platform and to reward users for providing liquidity, trading, and participating in the ecosystem.

• Governance: HYPE holders can stake their tokens to participate in platform governance, influencing decisions about the protocol’s development and future direction.

• Staking: Staking HYPE helps secure the network and allows holders to earn rewards.

• Tokenomics: HYPE has a total supply of 1 billion tokens, with significant portions allocated to community rewards, core contributors, and the Hyper Foundation. A notable airdrop distributed 31% of the supply to early users, making it one of the most valuable airdrops in crypto history.

Hyperliquid does not charge gas fees for standard trading activities.

This means that placing, modifying, or canceling orders on the platform is free of gas costs.

This approach is part of Hyperliquid's commitment to providing a user-friendly and cost-effective trading environment.

While gas fees are eliminated, Hyperliquid implements trading fees based on a user's 14-day rolling trading volume.

The fee structure is tiered, rewarding higher-volume traders with lower fees. Here's an overview.

Perpetual Contracts:

• Tier 0 (≤ $5M volume): Maker fee: 0.015%, Taker fee: 0.045%
• Tier 1 (> $5M): Maker fee: 0.012%, Taker fee: 0.040%
• Tier 2 (> $25M): Maker fee: 0.008%, Taker fee: 0.035%
• Tier 3 (> $100M): Maker fee: 0.004%, Taker fee: 0.030%
• Tier 4 (> $500M): Maker fee: 0.000%, Taker fee: 0.028%
• Tier 5 (> $2B): Maker fee: 0.000%, Taker fee: 0.026%.

Spot trading fees follow a similar structure, with maker and taker fees decreasing as trading volume increases.

Since its launch in late November 2024, HYPE has achieved significant price appreciation and market capitalization, entering the top ranks of cryptocurrencies by market cap, driven by strong fundamentals, innovative DeFi strategies, and a major airdrop.