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Hyperliquid Diligence Report

Deep Research ReportGenerated on Oct 28, 2025

Comprehensive Diligence Report for Hyperliquid

General

1. What is the function or purpose of the project?

Project Purpose
Hyperliquid is a vertically integrated protocol that combines a high-performance Layer-1 blockchain with a leading decentralized perpetual exchange (DEX) and a burgeoning spot market 12. Its core purpose is to build a fully on-chain central-limit order book (CLOB) perpetual DEX that can rival the speed and user experience of centralized exchanges (CEXs) like Binance, while offering transparency and self-custody 12. The project aims to become a full-fledged Layer-1 network, evolving into a comprehensive on-chain financial ecosystem, akin to an "on-chain Binance" 132.
The Hyperliquid L1 blockchain was developed from the ground up to specifically support its high-performance perpetual DEX 1. It utilizes a Proof-of-Stake (PoS) model and its proprietary HyperBFT consensus algorithm to ensure low latency and high throughput, optimizing for high-frequency order book trading 1. This design allows for specific order prioritization, such as cancels and post-only limit orders, which are crucial for market makers, and enables gasless trading for most transactions 14.
The platform has evolved beyond just a perp DEX, with the launch of a spot market and planned HyperEVM integration, moving it towards a broader general-purpose network 14. The HyperEVM, launched on mainnet in February 2025, functions within the existing L1 framework, maintaining security through HyperBFT consensus while offering Ethereum-compatible tooling for developers 5. Over 35 teams have announced plans to build on or integrate with the HyperEVM 46.
Asset Function
The HYPE token serves as the native asset for Hyperliquid's HyperBFT consensus and HyperEVM, with a maximum supply of 1 billion tokens 789. HYPE launched on November 29, 2024, and functions as the staked asset for Hyperliquid's HyperBFT consensus mechanism, securing the network 101112. The token serves multiple critical functions including staking for network consensus, acting as the gas token for HyperEVM smart contracts, enabling governance through validator voting, and providing fee discounts through tiered staking requirements 10115.

2. What is the function or purpose of the asset (if applicable)?

The HYPE token serves multiple critical functions within the Hyperliquid ecosystem. As the native staking asset for Hyperliquid's HyperBFT consensus mechanism, HYPE secures the network through validator staking and delegation 101112. The token functions as the gas token for HyperEVM, supporting smart contracts and enabling the broader ecosystem 10115.
HYPE enables governance through on-chain validator voting for critical decisions such as asset delisting and ticker assignments 1314. The token provides utility through permissionless market creation, where deployers must stake 500,000 HYPE to launch perpetual futures markets via HIP-3 151617. For permissionless quote asset deployment, 200,000 HYPE must be staked for at least three years 18.
The token offers fee discounts through a tiered staking system, ranging from Wood tier (>10 HYPE staked, 5% discount) to Diamond tier (>500,000 HYPE staked, 40% discount) 19. HYPE is also a tradable asset on Hyperliquid's decentralized exchange, with HYPE/USDC being a supported trading pair 1011.

3. Project Background

Hyperliquid was founded in late 2022 by a team of former high-frequency traders who aimed to build a fully on-chain central-limit order book (CLOB) perpetual decentralized exchange (DEX) capable of rivaling centralized exchanges (CEXs) 1. The team recognized the value of a transparent, open-source alternative to CEXs following the collapse of FTX 1. Jeff Yan is identified as a co-founder of Hyperliquid 20171821.
The protocol launched in late 2022 and has achieved significant milestones in its development 1. In January 2024, ProtocolCover launched on Hyperliquid, offering protection against hacks, oracle failures, and severe liquidation failures 22. By April 2024, the protocol demonstrated capabilities beyond just a decentralized perpetual exchange 1.
In October 2024, Hyperliquid's perp DEX achieved an all-time high in market share, capturing 26% of on-chain derivative DEX volume, and its open interest reached a record $1.5 billion 4. The Hyper Foundation announced the issuance of the native HYPE token in October 2024 12.
The HYPE token launched on November 29, 2024, with 31% of supply airdropped to early adopters 1011. HYPE token staking went live on mainnet on December 30, 2024, with the Hyper Foundation launching a Delegation Program 232425.
HyperEVM launched on mainnet on February 18, 2025, enabling spot transfers between native spot HYPE and HyperEVM HYPE, with HYPE as the native gas token 5. In March 2025, Hyperliquid implemented a 20% margin ratio requirement on margin transfers and introduced on-chain validator voting for asset delisting 2613.
A significant upgrade, HIP-3, was enabled on October 13, 2025, allowing for the permissionless creation of perpetual futures markets 1516. Deployers can launch perpetuals by staking 500,000 HYPE tokens, gaining access to the HyperCore DEX 151617.
The project has maintained a lean team of fewer than 10 contributors and has been largely self-funded, avoiding private investors 1. The network has seen significant growth, becoming the 11th largest chain by Total Value Locked (TVL) as of November 2024 4.

4. What's the URL to the project whitepaper?

Hyperliquid does not have a traditional whitepaper. Instead, its official documentation serves as the primary technical resource and is available at:
The documentation provides comprehensive information about Hyperliquid as a performant Layer 1 blockchain designed for a fully onchain open financial system 28. It includes detailed specifications for Hyperliquid Improvement Proposals (HIPs), such as HIP-3 for builder-deployed perpetuals 17, and covers various aspects of the protocol including staking, trading, and development resources.
Additional documentation resources include:

5. Is the project sponsored or supported by a centralized entity?

Yes, Hyperliquid is supported by the Hyper Foundation, which serves as a centralized supporting entity within the Hyperliquid ecosystem 2312. The Hyper Foundation plays several key roles:
Foundation Activities: The Hyper Foundation has announced initiatives such as the Hypurr NFT airdrop 29 and the Hyperliquid Delegation Program 30. The Foundation also facilitates protocol management, including the on-chain validator vote for the USDH ticker 14.
Token Allocation: The Hyper Foundation received 6% (60 million tokens) of the total HYPE supply for its operational budget 1131.
Governance Role: The Foundation participates in governance processes, with Foundation validators abstaining from certain votes by voting for the team with the most non-Foundation votes 14.
Compliance Requirements: The Foundation requires applicants for its Delegation Program to comply with applicable laws and regulations, complete Know Your Customer (KYC) or Know Your Business (KYB) verification, and not reside in restricted jurisdictions 30.
The documents do not explicitly state the incorporation or operating location of the Hyper Foundation, though it operates compliance programs requiring KYC/KYB verification and jurisdictional restrictions 30.

6. When was it founded or originated?

Hyperliquid was founded in late 2022 1. The protocol launched in late 2022, developed by a team of former high-frequency traders who aimed to build a fully on-chain central-limit order book (CLOB) perpetual decentralized exchange 1.

7. Where is it based or operating (if applicable)?

The specific incorporation or operating location of Hyperliquid and the Hyper Foundation is not explicitly disclosed in the available documentation. However, the project operates globally with compliance requirements indicating international operations:
Operational Indicators: The Hyper Foundation requires participants in its Delegation Program to comply with applicable laws and regulations, complete KYC/KYB verification, and confirms that applicants do not reside in restricted jurisdictions 30.
Team Background: The founding team consists of former high-frequency traders 1, and Jeff Yan, the co-founder, grew up in the United States and graduated from Harvard University in 2017 323334.
Global Operations: The project operates compliance programs and has international exchange listings, suggesting global operations rather than being restricted to a specific jurisdiction.

8. List of core team members or leaders (include LinkedIn and Twitter profiles).

Identified Core Team Member:
Jeff Yan - Co-founder and CEO of Hyperliquid 20171821+2
  • Background: Former high-frequency trader, Harvard University graduate (2017) with degrees in mathematics and computer science 323334
  • Previous Experience: HFT Engineer at Hudson River Trading, founder of Chameleon Trading (market-making firm) 3537
  • Role: CEO and co-founder, leads Hyperliquid's development and strategic direction 3536
Team Composition: The Hyperliquid team is described as lean, consisting of fewer than 10 total contributors 1. The team has generally maintained a private profile, remaining "closed to private investors and contributors" and being largely self-funded 1. The founders are noted to be ex-high-frequency traders who aimed to build a fully on-chain CLOB perpetual DEX 1.
Supporting Entities:
  • Hyperliquid Labs: Identified as a core contributor to the Hyper ecosystem 29
  • Hyper Foundation: Manages token distribution, delegation programs, and governance processes 293014
Note: Specific LinkedIn and Twitter profiles for the core team members are not provided in the official documentation. The team has maintained a relatively private profile, with Jeff Yan being the primary publicly identified founder through interviews and public appearances 38394041+3.

9. Does the project team have a relevant background, experience, or expertise in relation to the development of the project?

Yes, the Hyperliquid project team has highly relevant background and expertise for developing a high-performance decentralized exchange and Layer-1 blockchain.
Jeff Yan (Co-founder/CEO):
  • Educational Background: Harvard University graduate (2017) with degrees in mathematics and computer science 323334
  • Professional Experience: Former HFT (High-Frequency Trading) Engineer at Hudson River Trading 3537
  • Entrepreneurial Experience: Founded Chameleon Trading, a market-making firm that later served as a liquidity source for Hyperliquid's launch 37
  • Domain Expertise: Transitioned from quantitative trading to crypto after discovering Ethereum, with experience in low-level infrastructure and solving technical challenges like liquidity and slippage 3534
Team Composition: The founding team consists of former high-frequency traders 1, providing directly relevant experience for building a high-performance trading infrastructure. This background is particularly valuable for:
  • Understanding the technical requirements for low-latency trading systems
  • Designing order book mechanics and market microstructure
  • Implementing the performance optimizations needed to compete with centralized exchanges
  • Developing the custom HyperBFT consensus algorithm for high-frequency trading 1
Technical Expertise: The team's background in quantitative trading and low-level infrastructure proved crucial in solving technical challenges specific to decentralized exchange development, including liquidity provision, slippage minimization, and achieving the performance metrics necessary to rival centralized exchanges 35.
The team's experience in traditional high-frequency trading directly translates to the core value proposition of Hyperliquid: building a fully on-chain CLOB perpetual DEX with performance comparable to centralized exchanges 1.

Token Usage and Economics

1. How does the asset work? Provide a description of the primary use(s) of the asset in the network or protocol.

The HYPE token launched on November 29, 2024, with a total supply capped at 1 billion tokens 1011. It operates on Hyperliquid's custom Layer-1 blockchain and serves multiple critical functions within the ecosystem.
Staking for Network Consensus: HYPE serves as the staked asset for Hyperliquid's HyperBFT consensus mechanism 1011. Users can delegate HYPE to validators to secure the network and earn rewards 2324. Validators require a self-delegation of 10,000 HYPE to become active and earn rewards proportional to their total delegated stake 24. The active validator set consists of the top 21 accounts based on their staked HYPE 44.
Gas Token for HyperEVM: HYPE functions as the native gas token for the HyperEVM, Hyperliquid's EVM-compatible smart contract platform 115. The HyperEVM launched on mainnet on February 18, 2025, with Chain ID 999 and JSON-RPC endpoint at https://rpc.hyperliquid.xyz/evm 5.
Governance and Permissions: HYPE enables governance through on-chain validator voting for critical protocol decisions. Validators use stake-weighted voting for actions like asset delisting and assigning canonical tickers 1314. For example, in September 2025, validators voted to assign the USDH ticker, with Native Markets winning with 70.66% of the stake share 454647.
Permissionless Market Creation: Under HIP-3, deployers must stake 500,000 HYPE tokens to launch perpetual futures markets permissionlessly 151617. This requirement was reduced from an initial 1 million HYPE and is expected to decrease further as infrastructure matures 17. The staking requirement is maintained for 30 days even if all deployed perps are halted 17.
Quote Asset Deployment: Deploying permissionless quote assets requires staking 200,000 HYPE for at least three years, subject to slashing criteria if peg or liquidity conditions are not met 18. An additional 800,000 HYPE is required for "aligned stablecoin" status 20.
Fee Discounts: HYPE staking provides trading fee discounts through a tiered system implemented on May 5, 2025 19. The tiers range from Wood (>10 HYPE staked, 5% discount) to Diamond (>500,000 HYPE staked, 40% discount) 19.
Tradable Asset: HYPE is tradable on Hyperliquid's decentralized exchange with HYPE/USDC as a supported trading pair 1011. It has also been listed on centralized exchanges including Bitfinex and Robinhood 484950.

2. Do users or token holders earn fees, additional tokens, or any form of compensation by interacting with the network or in relation to holding the token (such as dividends, interest, liquidity rewards, or similar distributions)?

Yes, users and token holders can earn various forms of compensation through multiple mechanisms:
Staking Rewards: Users can delegate HYPE tokens to validators to earn staking rewards 2324. Validators earn rewards for successful participation in consensus, which are then shared with delegators 51. Delegators can stake HYPE tokens without minimum or maximum limits and currently earn an annualized staking reward of approximately 2.10%–2.30% 52. Rewards are automatically redelegated (compounded) daily 53.
Validator Rewards: Active validators produce blocks and receive rewards proportional to their total delegated stake 54. Validators can charge commissions, capped at a 1% increase 55. To become an active validator, a minimum self-delegation of 10,000 HYPE is required 55535657+1.
HIP-3 Market Deployment Rewards: Deployers who stake 500,000 HYPE to launch perpetual markets via HIP-3 receive 50% of the transaction fees generated from trading volume on their frontends 15161759. This creates a revenue-sharing model where successful market deployment can generate ongoing fee income.
Fee Discounts: HYPE staking provides trading fee discounts through a tiered system 19:
  • Wood: >10 HYPE staked, 5% trading fee discount
  • Bronze: >100 HYPE staked, 10% trading fee discount
  • Silver: >1,000 HYPE staked, 15% trading fee discount
  • Gold: >10,000 HYPE staked, 20% trading fee discount
  • Platinum: >100,000 HYPE staked, 30% trading fee discount
  • Diamond: >500,000 HYPE staked, 40% trading fee discount
Liquid Staking Options: Users can participate in liquid staking protocols like beHYPE (launched August 31, 2025) and Kinetiq, which allow staking HYPE while maintaining liquidity 6061. Kinetiq has a TVL of over $1.6 billion, with 36.5 million liquid staked HYPE supporting over 30 HIP-3 exchanges 6162.
Referral and Builder Rewards: Builders and referrers who stake HYPE can earn a percentage of their referred users' trading fees, up to a maximum of 40% for those at the highest staking tier 6364.

2.1. If so, how?

The compensation mechanisms operate through several integrated systems:
Staking Mechanism: Users delegate HYPE to validators through the staking interface. Rewards are calculated based on the minimum balance a delegator has staked during each staking epoch (100,000 rounds) 54. There is a 24-hour lockup period before delegated tokens become active for rewards, and rewards are auto-compounded daily 53.
Validator Selection: The active validator set consists of the top 21 validators by stake 44. Validators must maintain a minimum self-delegation of 10,000 HYPE locked for up to a year . Jailed validators do not produce rewards for their delegators 54.
HIP-3 Revenue Sharing: When deployers stake 500,000 HYPE and launch perpetual markets, they receive 50% of transaction fees from their markets while HyperCore supplies liquidity 59. The fee structure is fixed at 50% from the deployer's perspective but represents 2x the usual fees from the user's perspective 17.
Fee Discount Application: Fee discounts are applied automatically based on the amount of HYPE staked. Users' perpetuals and spot volume are counted together, with spot volume counting double towards fee tiers 19. A single fee tier applies across all assets including perps, HIP-3 perps, and spot 66.
Slashing Risks: Delegation comes with slashing risks 67. Validators can be slashed for behavior that jeopardizes protocol correctness, uptime, or performance, with penalties determined by stake-weighted validator votes 1724.

3. What are the typical ways users can acquire this asset (e.g., ICO, airdrop, purchase on an exchange, in-game rewards, reward for using a service, etc.)?

Users can acquire HYPE tokens through several methods:
Initial Airdrop: The largest initial distribution was through an airdrop on November 29, 2024, where 31% (310 million tokens) of the total supply was distributed to eligible early adopters 1011. This airdrop was notably higher than the typical 5-15% seen in other projects 68. Eligible users could also optionally receive a Hypurr NFT during the genesis distribution 12.
Exchange Trading: HYPE is available for purchase on both centralized and decentralized exchanges:
  • Centralized Exchanges: Listed on Bitfinex and Robinhood 484950
  • Decentralized Trading: Available on Hyperliquid's native DEX with HYPE/USDC as a supported trading pair 1011
Staking Rewards: Users can earn HYPE through staking and delegation rewards. Delegators currently earn approximately 2.10%–2.30% annualized staking rewards 52. Validators earn rewards proportional to their total delegated stake 54.
HIP-3 Market Deployment: Deployers who stake 500,000 HYPE to launch perpetual markets receive 50% of transaction fees generated from trading on their markets 15161759.
Future Community Rewards: Nearly 40% (388 million tokens) of HYPE tokens are reserved for future rewards, leading to speculation about potential second airdrops for engaged users 6911. The Community Rewards allocation represents 38.8% of the total supply 1131.
Liquid Staking Protocols: Users can acquire exposure through liquid staking tokens like beHYPE and participate in protocols like Kinetiq that offer liquid staking services 6061.
Platform Rewards: Users may earn HYPE through various platform activities and ecosystem participation, though specific reward mechanisms for general platform usage are not detailed in the current documentation.

4. Does the network have a staking or liquidity provision mechanism?

Yes, Hyperliquid has comprehensive staking mechanisms and supports liquidity provision through multiple channels.

4.1. If yes, how does it work?

Native Staking for Network Security: HYPE serves as the staked asset for Hyperliquid's HyperBFT consensus mechanism 1011. Users can delegate HYPE to validators to secure the network through a Proof-of-Stake model 2324.
Validator Operations: The active validator set consists of the top 21 validators by stake 44. Validators are responsible for producing blocks, publishing spot oracle prices every three seconds for perpetual assets, and participating in governance decisions 7054.
Liquid Staking Protocols: Multiple liquid staking options are available:
  • beHYPE: Launched August 31, 2025, allows users to stake HYPE for beHYPE tokens while maintaining liquidity 60
  • Kinetiq: A liquid staking protocol with TVL over $1.6 billion and 36.5 million liquid staked HYPE 6162
  • Kintsu (sHYPE): Introduces a gamified governance model where validators compete for stake based on performance 7172
Liquidity Provision: Users can provide liquidity through:
  • Native Spot Market: Hyperliquid's spot market features "Hyperliquidity," offering native concentrated liquidity 1
  • HIP-3 Market Support: Liquid staked HYPE can support over 30 HIP-3 exchanges, with each requiring significant HYPE staking 62

4.2. What are the eligibility requirements?

General Staking: Users can delegate HYPE tokens without minimum or maximum limits 52. There is a 24-hour lockup period before delegated tokens become active for rewards 53.
Validator Requirements: To become an active validator, entities must meet specific criteria:
  • Minimum self-delegation of 10,000 HYPE tokens 55535657+1
  • Self-delegated stake must be locked for up to a year
  • Must be among the top 21 validators by total stake to be active 44
Hyper Foundation Delegation Program: For validators seeking Foundation delegation:
  • Minimum self-delegation of 10,000 HYPE required 57
  • Must run at least two non-validator nodes with 95% uptime 57
  • Completion of KYC/KYB and acceptance of Program Terms 57
  • Must not reside in restricted jurisdictions 30
HIP-3 Market Deployment: To deploy perpetual markets:
  • Must stake 500,000 HYPE tokens 151617
  • Stake maintained for 30 days even after perps are halted 17
  • Subject to slashing for malicious behavior 17
Permissionless Quote Assets: To deploy quote assets:
  • Must stake 200,000 HYPE for at least three years 18
  • Additional 800,000 HYPE required for "aligned stablecoin" status 20
  • Subject to slashing if liquidity or peg conditions not met 18

4.3. Is delegation available or required?

Delegation Available: Yes, delegation is available and encouraged. Users can delegate HYPE to any number of validators within a staking account 54. Delegation allows users to participate in network security without running validator infrastructure.
Not Required for Basic Participation: Delegation is not required for basic token holding or trading activities. Users can hold and trade HYPE without staking.
Required for Validator Operations: Self-delegation is required for validators. Active validators must self-delegate a minimum of 10,000 HYPE tokens 55535657+1.
Delegation Mechanics:
  • Delegators can choose any active validator
  • Rewards are shared proportionally based on stake
  • Validators can charge commissions capped at specific rates 55
  • Delegation can be withdrawn subject to unstaking periods

4.4. Are there minimums or maximums concerning node count, funds staked, number of delegators, etc.?

Validator Set Limits: The active validator set is limited to 21 validators, determined by the top validators by total stake 44.
Minimum Staking Requirements:
  • Validator Self-Delegation: 10,000 HYPE minimum 55535657+1
  • General Delegation: No minimum or maximum limits for delegators 52
  • HIP-3 Deployment: 500,000 HYPE minimum 151617
  • Quote Asset Deployment: 200,000 HYPE minimum 18
  • Aligned Stablecoin Status: Additional 800,000 HYPE required 20
Commission Limits: Validator commissions are capped at a 1% increase 55.
Staking Epochs: Stakes remain static for the duration of each staking epoch, which consists of 100,000 rounds 54.
No Maximum Delegation Limits: There are no specified maximum limits on the amount users can delegate or the number of delegators a validator can have.

4.5. How are rewards paid?

Automatic Distribution: Rewards are automatically redelegated (compounded) to the staked validator daily 5453. This compounding mechanism increases the delegator's stake automatically without requiring manual action.
Proportional Distribution: Validators earn rewards proportional to their total delegated stake, and these rewards are shared with delegators based on their contribution to the validator's total stake 5451.
Reward Calculation: Rewards are calculated based on the minimum balance a delegator has staked during each staking epoch (100,000 rounds) 54. This prevents gaming through temporary stake increases.
Commission Structure: Validators can charge commissions from the rewards before distribution to delegators, with commissions capped at specific rates 55.
Liquid Staking Rewards: For liquid staking protocols like beHYPE and Kinetiq, rewards are typically distributed through the liquid staking token's appreciation or through separate reward mechanisms 6061.

4.6. Where do they come from (fees, inflation, foundation, etc.)?

Network Fees: Rewards primarily come from network transaction fees and block production rewards within the HyperBFT consensus mechanism 1011.
Protocol Revenue: A portion of Hyperliquid's trading fees supports the network through various mechanisms, though the specific allocation to staking rewards is not detailed in the available documentation.
HIP-3 Fee Sharing: For HIP-3 market deployers, 50% of transaction fees from their deployed markets are distributed as rewards 15161759.
Inflation/Emissions: The protocol has allocated 38.8% of the total HYPE supply (388 million tokens) for future emissions and community rewards 1131. This allocation can support ongoing reward distribution, though specific emission schedules are not detailed.
Foundation Support: The Hyper Foundation, which received 6% of the total supply, may support reward mechanisms through its operational budget 1131.
The exact breakdown of reward sources and emission schedules is not comprehensively detailed in the available documentation, indicating that reward mechanisms may be subject to governance decisions and protocol evolution.

5. Is the asset primarily used on an associated platform or access point? If yes, what is the URL?

Yes, HYPE is primarily used on Hyperliquid's associated platforms and access points:
Primary Trading Platform: https://app.hyperliquid.xyz/trade 73
  • This is the main interface for trading HYPE and other assets on Hyperliquid's decentralized exchange
  • Users can trade HYPE/USDC pairs and access perpetual and spot markets
  • The platform provides access to staking, delegation, and other HYPE utility functions
HyperEVM Access: HYPE serves as the gas token for HyperEVM smart contracts, accessible via:
Documentation and Developer Resources: https://docs.hyperliquid.xyz 27 or https://hyperliquid.gitbook.io/hyperliquid-docs/ 73
  • Provides comprehensive information about HYPE token functionality
  • Includes staking guides, API references, and integration documentation
Block Explorer: HypurrScan at https://hypurrscan.io 747576
  • Allows users to view HYPE token transactions, holder distributions, and network activity
  • Provides real-time monitoring of staking and validator information
Staking and Governance: HYPE is used for:
  • Validator staking and delegation through the main platform
  • On-chain governance voting for protocol decisions
  • HIP-3 market deployment requiring 500,000 HYPE stakes 151617
  • Permissionless quote asset deployment requiring 200,000 HYPE stakes 18
The token's utility is deeply integrated into Hyperliquid's ecosystem, making the associated platforms essential for accessing most HYPE functionality beyond basic trading on external exchanges.
HYPE token holders have specific governance rights and protocol participation mechanisms, though these are primarily related to network governance rather than traditional equity-like claims:
Governance Rights: HYPE enables participation in on-chain governance through validator voting mechanisms. Token holders can participate in critical protocol decisions such as:
  • Asset delisting votes conducted by validators 1314
  • Ticker assignment processes, such as the USDH vote where Native Markets won with 70.66% of stake share 454647
  • Protocol upgrade decisions through the validator consensus mechanism
Validator Voting Power: HYPE staking provides voting power proportional to stake in validator-mediated governance decisions. Validators use stake-weighted voting for protocol governance, with a quorum defined as validators holding more than two-thirds of total network stake 54.
Network Participation Rights: Token holders have rights to:
  • Participate in network consensus through staking and delegation 2324
  • Deploy permissionless markets by staking required amounts (500,000 HYPE for HIP-3, 200,000 HYPE for quote assets) 15161718
  • Receive fee discounts based on staking tiers 19
No Traditional Equity Claims: The documentation does not indicate that HYPE holders have traditional equity-like claims such as:
  • Claims on capital or assets of the Hyper Foundation
  • Rights to profit distributions from the supporting entity
  • Legal ownership stakes in Hyperliquid Labs or related entities
Protocol Economic Rights: Token holders benefit from protocol economics through:
  • Staking rewards from network participation 52
  • Fee sharing for HIP-3 market deployers (50% of transaction fees) 15161759
  • Potential value accrual from the Assistance Fund's ongoing HYPE buybacks 7778
Foundation Relationship: While the Hyper Foundation supports the protocol, HYPE holders do not have explicit legal claims on the Foundation's assets or operations beyond their governance participation rights 2312.
Yes, Hyperliquid has significant burning and buyback mechanisms currently active and planned for the future:
Assistance Fund Buyback Program: Hyperliquid operates an active buyback program through its Assistance Fund (AF), which conducts ongoing HYPE token purchases from the market 7778. The AF channels 97% of Hyperliquid's trading fees into continuous HYPE token buybacks through an automated, on-chain mechanism 79.

8. Date(s) of the burn or buyback event(s).

Ongoing Buyback Activity (2025):
  • January 21 - February 3, 2025: The Assistance Fund purchased an average of approximately $1.7 million worth of HYPE daily, with notable spikes exceeding $4.5 million on February 3, 2025 78
  • August 2025: The Assistance Fund had repurchased over $29 million in HYPE, bringing total buybacks to over $540 million 80
  • September 2025: Monthly buybacks spiked to $168.45 million 81
  • 2025 Total: Hyperliquid repurchased over 21 million HYPE tokens (approximately 2.1% of total supply) with nearly $645 million allocated through the Assistance Fund 828381
Proposed Future Burns: A governance proposal in September 2025 seeks to burn all HYPE currently held in the Assistance Fund (approximately 31 million HYPE) and any HYPE the AF acquires on an ongoing basis 8485. This would reduce the supply by 21 million HYPE from the assistance fund 86.
Historical Buyback Scale: By October 2025, the Assistance Fund's total purchases of HYPE surpassed $1.3 billion 87. Hyperliquid accounted for 46% of all token buyback activity in 2025, with monthly buybacks averaging $65.5 million 81.

9. Are these efforts executed algorithmically or completed by the Project Team?

Algorithmic Execution: The buyback program appears to be primarily algorithmic and automated. The Assistance Fund conducts "continuous HYPE token buybacks through an automated, on-chain mechanism" 79. The consistent, ongoing nature of purchases and references to "programmatic buybacks" suggest a structured, automated approach 8078.
Protocol-Level Integration: The buyback mechanism is integrated at the protocol level, with 97% of trading fees automatically directed to the Assistance Fund for HYPE purchases 79. This systematic approach indicates algorithmic rather than manual execution.
Governance-Driven Changes: While the execution is algorithmic, the parameters and policies are subject to governance decisions. The September 2025 proposal to burn AF holdings and modify the buyback mechanism demonstrates that the community and governance can modify these automated systems 8485.
Validator Involvement: Some aspects involve validator participation, such as the governance proposal process and potential future changes to the buyback mechanism structure 84.
The combination of automated execution with governance oversight provides both consistency in buyback activity and community control over the mechanism's evolution.

10. Is the asset a stablecoin?

No, HYPE is not a stablecoin. HYPE is the native utility and governance token of the Hyperliquid ecosystem, serving multiple functions including staking for network consensus, gas for smart contracts, and governance participation 10115.

10.1. If so, explain what it is pegged to, how it is backed, and what mechanism(s) are used to maintain that peg.

Not applicable, as HYPE is not a stablecoin.

10.2. Is it redeemable for the asset that it is pegged to, on a 1:1 basis or otherwise?

Not applicable, as HYPE is not a stablecoin.
Note on Aligned Stablecoins: While HYPE itself is not a stablecoin, Hyperliquid supports "aligned stablecoins" within its ecosystem. These are stablecoins where issuers share at least 50% of the yield earned by their off-chain assets with the protocol, enabling users to receive 20% lower taker fees, 50% better maker rebates, and 20% more volume contribution towards fee tiers 20. However, these are separate assets from HYPE.

11. Does the asset have privacy characteristics or does it anonymize transactions in any way?

No, HYPE does not have specific privacy characteristics or transaction anonymization features. HYPE operates on Hyperliquid's Layer-1 blockchain, which uses a transparent, account-based model similar to Ethereum 1.

11.1. If yes, how so?

Not applicable, as HYPE does not have privacy characteristics.

11.2. If no, are there any future plans to implement privacy or anonymization technology?

The available documentation does not indicate any announced plans to implement privacy or anonymization technology for HYPE transactions or the Hyperliquid network. The protocol appears focused on transparency and performance rather than privacy features.

11.3. If yes, how would it work and how far along are these plans?

Not applicable, as no privacy implementation plans have been identified.

12. Is there notable concentration among nodes or validators? If yes, explain.

Yes, there is notable concentration among validators in the Hyperliquid network:
Current Validator Concentration: Hyperliquid's validator nodes are primarily run by the core team to minimize network latency and enable frequent updates 1. These validators are responsible for critical functions such as securing bridges and publishing prices for the native oracle to calculate funding rates 1.
Limited Validator Set: The active validator set is limited to 21 validators, determined by the top validators by total stake 44. This relatively small validator set creates inherent concentration compared to networks with hundreds or thousands of validators.
Team-Operated Infrastructure: While this setup prioritizes performance, it has led to concerns regarding network centralization due to the relatively small validator set and team operation . The current structure is designed to optimize for the high-performance requirements of the trading infrastructure.
Decentralization as Long-Term Goal: Hyperliquid acknowledges this centralization and positions decentralization as a longer-term objective 1. As an initial step toward decentralization, non-validator (read-only) nodes have been introduced that do not participate in consensus but provide oversight and audit capabilities 1.
Transition Plans: The protocol is working towards greater decentralization through initiatives like:
  • The Hyper Foundation Delegation Program to support community validators 2325
  • Liquid staking protocols like Kintsu that introduce gamified governance models where validators compete for stake based on performance 7172
  • Gradual transition from team-operated to community-operated validators as the network matures
The concentration is acknowledged as a temporary trade-off for performance, with plans for gradual decentralization as the protocol develops.
Yes, there is notable concentration among HYPE token holders, though the largest individual holder represents a relatively modest percentage:
Top Holder Concentration: The largest individual holder of HYPE tokens holds 1.1% of the supply 89. While specific details for all top 10 addresses are not provided, the available data shows significant institutional and protocol-related holdings.
Notable Large Holders (as of available data):
  • HyperLabs: 242,039,131.67 HYPE (all staked) 90
  • HyperEVM: 33,666,326.91 HYPE 90
  • Assistance Fund: 31,895,779.22 HYPE 90
  • Individual Addresses: Several addresses holding between 800,000 to 1.8 million HYPE 90
Total Holders: There are 185,558 HYPE token holders as of the most recent data 90.
Institutional Holdings:
  • Hyperliquid Strategies: Holds 12.6 million HYPE tokens in its treasury 82919250
  • Circle: Has become a direct stakeholder in HYPE and is exploring validator status 93
Block Explorer: The primary block explorer for Hyperliquid is HypurrScan, accessible at https://hypurrscan.io 747576. This explorer provides comprehensive token holder information and real-time distribution data.
Distribution Characteristics: The concentration appears to be primarily among protocol-related entities (HyperLabs, HyperEVM, Assistance Fund) rather than individual whale holders, which may indicate a more distributed individual holder base despite institutional concentration.

12.2. Are there superusers or other network privileges that allow one or more users to modify transactions or holdings of tokenholders?

Yes, there are several network privileges and mechanisms that allow certain users to modify aspects of the network and potentially affect token holders:
Validator Slashing Powers: Validators have the authority to slash stakes of deployers who violate protocol conditions 1718. Slashing penalties are determined by stake-weighted median of validator votes and can range up to 100% for severe violations like invalid state transactions or prolonged network downtime 17. Slashed HYPE tokens are burned to prevent false incentives 94.
Asset Delisting Authority: Validators can vote to delist assets and disable perpetual DEXs using specific assets as collateral 17. This was demonstrated in the JELLY perps delisting incident where validators voted to remove the asset due to suspicious market activity 95.
Market Settlement Powers: HIP-3 deployers have the authority to settle assets using the haltTrading action, which cancels all orders and settles positions to the current mark price 96. While this affects market participants, it's limited to specific deployed markets.
Oracle Price Control: Validators are responsible for publishing spot oracle prices every three seconds for perpetual assets, which directly affects funding rates and liquidations 70. This gives validators significant influence over market mechanics.
Governance Override Capabilities: The current validator set, being primarily team-operated, has significant control over protocol upgrades and governance decisions 1. With validators holding more than two-thirds of total stake forming a quorum, they can implement changes that affect all token holders 54.
Foundation Privileges: The Hyper Foundation has operational control over certain programs and can implement compliance requirements like KYC/KYB for participation in delegation programs 30.
Limitations: These privileges are generally:
  • Subject to stake-weighted voting rather than unilateral control
  • Focused on protocol security and market integrity
  • Designed to transition to more decentralized governance over time 1
The concentration of these powers in the current validator set represents a centralization risk that the protocol acknowledges and plans to address through gradual decentralization.

12.3. Are there contributors outside of the project team that are compensated for working on the project? If so, how are they compensated (from a central entity, grant programs, onchain treasury spends, etc.)? Are there any contributors that are not compensated for their work?

Community Grants Program: The Hyper Foundation has allocated funds for community grants, with Community Grants accounting for $169.13 million in the token allocation 97. The Foundation received 6% of the total HYPE supply for operational budget, which includes grant distributions 1131.
Validator Compensation: External validators who meet the requirements can earn rewards through the network's consensus mechanism. Validators earn rewards proportional to their total delegated stake, with rewards shared with delegators 5451. The Hyper Foundation Delegation Program supports high-performing community validators 2325.
HIP-3 Market Deployers: External developers who deploy perpetual markets by staking 500,000 HYPE receive 50% of transaction fees generated from trading on their markets 15161759. This creates a direct compensation mechanism for ecosystem builders.
Ecosystem Development: Over 35 teams have announced plans to build on or integrate with the HyperEVM 46, suggesting various forms of ecosystem support and potential compensation, though specific details are not provided.
Liquid Staking Protocol Operators: Teams building liquid staking solutions like beHYPE (Hyperbeat and ether.fi collaboration) and Kinetiq likely receive compensation through their protocol operations and token economics 6061.
Audit and Security Contributors: External auditors like Nethermind and Certora have been compensated for security audits of ecosystem projects like beHYPE 60.
Open Source Contributions: While Hyperliquid is described as open-source 1, specific details about compensation for code contributions from external developers are not provided in the available documentation.
Uncompensated Contributors: The documentation does not explicitly identify contributors who work without compensation, though the open-source nature of the project suggests some community contributions may be voluntary.
The compensation structure appears to focus on ecosystem development, security, and network operation rather than traditional employment relationships.

12.4. Does the network have a governance process? If yes, please describe.

Yes, Hyperliquid has a governance process that operates through on-chain validator voting mechanisms:
Validator-Based Governance: The primary governance mechanism operates through stake-weighted validator voting. Validators use their stake to vote on critical protocol decisions, with a quorum defined as validators holding more than two-thirds of the total network stake 54.
On-Chain Voting Examples:
  • Asset Delisting: Validators can vote to delist assets that fail to meet quality standards or pose risks to the protocol 1713
  • Ticker Assignment: In September 2025, validators voted to assign the USDH ticker, with Native Markets winning with 70.66% of the stake share 454647
  • Slashing Decisions: Validators determine slashing penalties through stake-weighted median votes for deployers who violate protocol conditions 17
Governance Scope: The governance process covers:
  • Technical Upgrades: Protocol upgrades and parameter changes
  • Asset Management: Listing, delisting, and ticker assignments for assets
  • Risk Management: Slashing conditions and penalty determinations
  • Economic Parameters: Fee structures and reward mechanisms
Proposal Implementation: Approved governance proposals are implemented through the validator consensus mechanism. The current validator set, being primarily team-operated, has significant control over implementation 1.
Foundation Role: The Hyper Foundation participates in governance processes, with Foundation validators abstaining from certain votes by voting for the team with the most non-Foundation votes 14.
Future Evolution: As the network decentralizes, the governance process is expected to become more community-driven, with broader participation from independent validators and potentially direct token holder voting mechanisms.
The governance process is currently functional but centralized due to the team-operated validator set, with plans for increased decentralization over time.
Currently, the project team has significant control over proposal implementation due to the centralized validator structure:
Team Control Through Validator Set: Since Hyperliquid's validator nodes are primarily run by the core team 1, they effectively control the governance process through their stake-weighted voting power. With validators needing more than two-thirds of total stake to form a quorum 54, the team-operated validators can influence or block proposals.
Validator Voting Mechanism: While governance operates through validator voting, the concentration of validators under team control means that proposals effectively require team consent for implementation. The team can override community preferences through their validator majority.
Foundation Abstention Policy: The Hyper Foundation has demonstrated some restraint by abstaining from certain votes, such as voting for the team with the most non-Foundation votes in the USDH ticker assignment 14. However, this is a voluntary policy rather than a technical constraint.
Technical Implementation Control: Beyond voting, the team maintains control over the technical implementation of approved proposals through their operation of the validator infrastructure and protocol development.
Transition Plans: The protocol acknowledges this centralization and positions decentralization as a longer-term objective 1. As more independent validators join the network and the team reduces its validator control, proposals could potentially be implemented without team consent.
Current Reality: In the current state, proposals cannot be implemented without the project team's consent due to their control over the validator set. The team has the ability to override proposals and make unilateral changes through their validator majority.
This represents a significant centralization risk that the protocol plans to address through gradual validator decentralization and the growth of independent validator participation.

12.6. Please provide any additional details on current and future project decentralization.

Current Decentralization Status: Hyperliquid currently operates with significant centralization, particularly in validator operations and protocol governance. The core team runs the majority of validator nodes to optimize performance and enable rapid protocol updates 1. This centralized approach is acknowledged as a temporary trade-off for achieving the high-performance requirements necessary to compete with centralized exchanges.
Decentralization Roadmap: The project has outlined several initiatives to increase decentralization over time:
Validator Decentralization:
  • Non-Validator Nodes: Introduction of read-only nodes that provide oversight and audit capabilities without participating in consensus 1
  • Delegation Program: The Hyper Foundation Delegation Program supports community validators by delegating tokens to reliable and high-performing validators 2325
  • Validator Competition: Liquid staking protocols like Kintsu introduce gamified governance models where validators compete for stake based on performance 7172
Community Governance Evolution:
  • Stake-Weighted Voting: The governance system is designed to become more decentralized as independent validators accumulate stake 54
  • Permissionless Participation: HIP-3 allows permissionless market deployment, reducing reliance on team-controlled market creation 1516
  • Community Rewards: 38.8% of HYPE supply is allocated for future community rewards, potentially supporting decentralization initiatives 11
Technical Decentralization:
  • Open Source Development: The protocol is open-source, allowing community contributions to development 1
  • HyperEVM Ecosystem: Over 35 teams building on HyperEVM create a more distributed ecosystem 46
  • Permissionless Asset Deployment: Quote asset deployment and market creation reduce central control over ecosystem expansion 18
Timeline and Challenges: Decentralization is positioned as a longer-term goal that becomes more feasible as development velocity slows and the protocol matures 1. The challenge is balancing decentralization with the performance requirements that make Hyperliquid competitive with centralized exchanges.
Economic Decentralization: The Assistance Fund's buyback mechanism and community token distribution through airdrops and future rewards contribute to broader token distribution, supporting governance decentralization over time 7778.
The project's approach to decentralization appears gradual and performance-conscious, prioritizing functionality while building infrastructure for eventual community control.

Technology

1. Is the project open-source? If so, under what license?

Yes, Hyperliquid is confirmed to be open-source. The team behind Hyperliquid consists of former high-frequency traders who value the transparency of an open-source system, especially after events like the FTX collapse 1. Hyperliquid is built as a fully onchain Central Limit Order Book (CLOB) perpetual decentralized exchange (DEX) that aims to be a transparent, open-source alternative to centralized exchanges 1.
However, the specific open-source licenses used for Hyperliquid's repositories are not detailed in the available documentation. While the project confirms its open-source nature and emphasizes transparency as a core value, the exact licensing terms and repository-specific license information would need to be verified directly from the project's code repositories.
The available documentation confirms that Hyperliquid has publicly available code repositories and emphasizes its open-source nature 1, but specific links to the primary GitHub or GitLab repositories for Hyperliquid's core code are not provided in the gathered information.
The project does maintain comprehensive documentation that includes developer resources:
For developers building on the ecosystem, the documentation includes:
  • API references for deploying HIP-1 and HIP-2 assets 18
  • HIP-3 builder-deployed perpetuals specifications 17
  • Integration guides and development resources
While the open-source status is confirmed, the specific repository locations would need to be obtained directly from the official Hyperliquid channels or documentation.

3. Is the asset built on its own network, or on top of another? Is the asset's underlying network a fork of another network? Include the token standard(s) as applicable.

HYPE is built on its own custom Layer-1 network, not on top of another blockchain. Hyperliquid's Layer-1 blockchain was developed from the ground up specifically to support its high-performance perpetual DEX 1.
Custom Network Architecture: The Hyperliquid L1 utilizes a custom Proof-of-Stake (PoS) model and its proprietary HyperBFT consensus algorithm 1. This custom consensus mechanism is designed to ensure low latency and high throughput, optimizing for high-frequency order book trading with approximately 70ms block times and the ability to handle up to 200,000 orders per second 19899.
Not a Fork: The network is not a fork of another blockchain but was custom-built to meet the specific performance requirements of a high-frequency trading environment. The HyperBFT consensus algorithm is proprietary and differs from other consensus mechanisms like Tendermint by allowing parallel transaction sequencing before block hash execution 1.
Dual Architecture: The network features a dual architecture:
  • HyperCore: The native trading infrastructure for perpetuals and spot markets
  • HyperEVM: An EVM-compatible smart contract platform (Chain ID 999) that launched on mainnet February 18, 2025 5
Token Standards:
  • Native HYPE: Operates on the custom Hyperliquid L1 with its own native token standard
  • HyperEVM HYPE: When used on the HyperEVM, HYPE functions similarly to ETH on Ethereum, serving as the gas token
  • WHYPE: A wrapped version of HYPE exists on HyperEVM at address 0x5555555555555555555555555555555555555555 100101102
Account-Based Model: The network uses an account-based accounting model similar to Ethereum rather than a UTXO model 1.
HYPE operates on Hyperliquid's custom Layer-1 blockchain, so it does not have traditional smart contracts in the same way as ERC-20 tokens on Ethereum. However, there are relevant contract addresses for the HyperEVM integration:
HyperEVM Contract:
Block Explorer: The primary block explorer for Hyperliquid is HypurrScan at https://hypurrscan.io 747576, which provides comprehensive information about HYPE token transactions and holdings.
Contract Verification: The WHYPE system contract is described as immutable and uses the same source code as wrapped ETH 100. However, specific verification status details are not provided in the available documentation.
Native Token: As HYPE is the native token of the Hyperliquid L1, it operates at the protocol level rather than through a smart contract, similar to how ETH operates on Ethereum mainnet.
For detailed contract information and verification status, users should refer to the HypurrScan explorer and the official Hyperliquid documentation.

5. What is the accounting standard of the asset's underlying network (UTXO, account, etc.)?

Hyperliquid's underlying network uses an account-based accounting model 1. This is similar to Ethereum's accounting system, where each address has an associated account that tracks the balance and state, rather than the UTXO (Unspent Transaction Output) model used by Bitcoin and some other cryptocurrencies.
The account-based model is well-suited for Hyperliquid's use case as a high-performance trading platform, as it allows for more efficient state management and smart contract interactions, particularly with the HyperEVM integration that provides Ethereum-compatible functionality 5.
Yes, there are several key contracts and systems beyond the core HYPE token that are essential to Hyperliquid's operation:
HyperEVM System Contracts:
  • WHYPE Contract: 0x5555555555555555555555555555555555555555 100101102
    • Role: Canonical wrapped HYPE system contract that enables DeFi applications on HyperEVM
    • Function: Immutable contract using the same source code as wrapped ETH, allowing HYPE to be used in smart contracts
HyperCore Infrastructure: The native trading infrastructure that handles:
  • Order book management for perpetuals and spot markets
  • Atomic liquidations based on oracle price feeds
  • Funding payment distributions
  • Market maker order prioritization
Oracle System: Validators publish spot oracle prices every three seconds for perpetual assets, which are used to calculate funding rates 70. The oracle aggregates prices from multiple exchanges including Binance, OKX, Bybit, Kraken, Kucoin, Gate IO, MEXC, and Hyperliquid itself 70.
HIP-3 Deployment Contracts: Enable permissionless perpetual market creation with:
  • Staking requirement enforcement (500,000 HYPE)
  • Fee sharing mechanisms (50% to deployers)
  • Slashing conditions for malicious behavior
Liquid Staking Contracts:
  • beHYPE: Audited by Nethermind and Certora, enables liquid staking of HYPE 60
  • Kinetiq: Liquid staking protocol with over $1.6 billion TVL 61
Assistance Fund Mechanism: Automated on-chain system that conducts HYPE buybacks using 97% of trading fees 79.
Block Data Infrastructure: Raw HyperEVM block data is streamed in real-time to S3 for indexing without requiring full node operation 5.
While specific contract code links are not provided in the documentation, these systems are integral to the platform's operation and can be explored through the HypurrScan block explorer at https://hypurrscan.io 747576.
Yes, Hyperliquid ecosystem projects have received formal technical audits:
beHYPE Liquid Staking Token Audits:
  • Auditors: Nethermind and Certora 60103104
  • Scope: Security audit of the beHYPE liquid staking token, which is a collaboration between Hyperbeat and ether.fi
  • Status: Audits were completed prior to beHYPE's launch on August 31, 2025 60
  • Report Availability: Audit reports are available on GitHub 60103
Hyperliquid Platform Audit:
  • Auditor: Kryll conducted an X-Ray audit of Hyperliquid ($HYPE) 105
  • Date: Published on September 26, 2025 105
  • Scope: Platform audit highlighting strengths and vulnerabilities, with specific attention to cybersecurity weaknesses, particularly email security flaws 105
Additional Security Reviews:
  • Pashov Security Review: A security review document for Hyperbeat was conducted, initially named Hyperbeat-security-review_2025-09-03.pdf, later renamed to Pashov.pdf on GitHub 106
Audit Coverage: The audits have focused on:
  • Liquid staking token security (beHYPE)
  • Platform-level security assessment (Kryll audit)
  • Smart contract security for ecosystem projects
Core Protocol Audits: While ecosystem projects have been audited, the available documentation does not provide specific details about comprehensive audits of Hyperliquid's core protocol, HyperBFT consensus mechanism, or the main trading infrastructure. The HyperEVM, being a significant architectural component, may have undergone security review as part of the broader platform assessment.
Audit Repository References:
  • Nethermind publishes audit reports at: NethermindEth/PublicAuditReports 107108
  • Certora hosts formal verification reports on its repository 109
The audit coverage appears to focus on ecosystem components and platform security rather than comprehensive core protocol audits, though this may reflect the availability of public audit information rather than the absence of such audits.

8. Is the asset supported by any wallets or browser extensions like Ledger, Trezor, MetaMask, etc.?

Yes, HYPE is supported by various wallets and browser extensions, particularly those that support EVM-compatible networks:
EVM-Compatible Wallet Support: Since HYPE operates on HyperEVM (Chain ID 999) with JSON-RPC endpoint at https://rpc.hyperliquid.xyz/evm 5, it is compatible with standard EVM wallets including:
  • MetaMask: Can be configured to connect to HyperEVM using the provided RPC endpoint
  • Other EVM Wallets: Any wallet supporting custom EVM networks can potentially support HYPE
Hardware Wallet Support: For EVM-compatible tokens, hardware wallets like Ledger and Trezor typically provide support through their integration with software wallets like MetaMask. However, specific confirmation of Ledger Live or Trezor Suite native support for HYPE is not provided in the available documentation.
Native Platform Access: The primary way to interact with HYPE is through:
Block Explorer Integration: HypurrScan at https://hypurrscan.io 747576 provides comprehensive wallet and transaction information for HYPE holders.
Important Security Note: The official documentation emphasizes that there is no official Hyperliquid app available on any app store, and any such app would be a scam. Users should always verify the full URL of any website they interact with 110.
Wallet Configuration: To add HYPE support to compatible wallets, users would need to:
Custom API Reference: Yes, Hyperliquid provides custom API references for developers:
Third-Party Integrations:
  • Avail Nexus Integration: Hyperliquid has been integrated with Avail Nexus, enabling chain abstraction via the Nexus SDK, which is compatible with EVM-based environments 111
  • Chainlink RPC: Chainlink has released public access to its RPC endpoint for the HyperEVM testnet for developers building Hyperliquid applications 112
  • P2P.org API: P2P.org has integrated Hyperliquid's HYPE staking into its API, allowing platforms to offer non-custodial staking 113
Data Accessibility: Raw HyperEVM block data is streamed in real-time to S3 for indexing without needing to run a full node 5, providing alternative data access methods for developers.
Rosetta Implementation: The available documentation does not mention a specific Rosetta implementation for Hyperliquid. While one document mentions "New projects like Rosetta and ThePrivacyCash are emerging" 114, this refers to a new project named "Rosetta" rather than a Rosetta API implementation for Hyperliquid itself.
Independent Node Operation: The platform encourages independent node operation and provides the necessary infrastructure for developers to run their own nodes and access network data 5.

10. Are there plans to migrate the asset to another network?

The available documentation does not indicate any plans to migrate HYPE to another network. Instead, Hyperliquid appears focused on expanding and enhancing its own Layer-1 infrastructure:
Network Expansion Plans: Rather than migration, Hyperliquid is expanding its native network capabilities:
  • HyperEVM Integration: Already launched on mainnet (February 18, 2025) to provide EVM-compatible smart contract functionality 5
  • Ecosystem Growth: Over 35 teams have announced plans to build on or integrate with the HyperEVM 46
  • Cross-Chain Integration: Integration with protocols like Avail Nexus for chain abstraction capabilities 111
Bridge Functionality: The platform supports bridging mechanisms, as evidenced by incidents where funds were bridged to Ethereum 115116, suggesting interoperability features rather than migration plans.
Network Development Focus: The project's roadmap emphasizes:
  • Complete decentralization of the existing network 117
  • Expanding the HyperEVM ecosystem 117
  • Establishing itself as leading liquidity infrastructure 117
Strategic Direction: Hyperliquid's strategy appears centered on building a comprehensive on-chain financial ecosystem on its own Layer-1, positioning itself as an "on-chain Binance" 132 rather than migrating to existing networks.
The focus on custom infrastructure development and ecosystem expansion suggests that HYPE will remain native to the Hyperliquid Layer-1, with cross-chain functionality provided through bridges and integrations rather than migration.

1. Project funding details. Include token sales and equity rounds:

Self-Funded Development Model: Hyperliquid has maintained a unique funding approach by remaining largely self-funded and avoiding traditional private investor participation 1. The team has been "closed to private investors and contributors" and has funded development independently 1.
No Private Investor Token Allocation: Notably, no HYPE tokens were allocated to private investors, centralized exchanges, or market makers in the token distribution, emphasizing decentralization and community ownership 101131.
Related Entity Funding: While the core Hyperliquid protocol team avoided private funding, related entities have pursued capital raising:

1.1. Date of funding

  • June 2025: Eyenovia announced a $50 million private placement 118
  • October 2025: Hyperliquid Strategies filed S-1 with SEC to raise up to $1 billion 829291

1.2. Number of tokens sold (and percentage of the total supply allocated to the sale)

  • Core Protocol: No tokens were sold to private investors (0% allocation) 1011
  • Related Entities: Eyenovia and Hyperliquid Strategies are acquiring HYPE from secondary markets rather than through direct token sales

1.3. Price of the token at sale

  • No Direct Sales: Since no private token sales occurred, there are no private sale prices
  • Market Acquisition: Related entities acquire HYPE at market prices through secondary markets

1.4. Amount raised

  • Eyenovia: $50 million private placement 118
  • Hyperliquid Strategies: Up to $1 billion through public offering 829291

1.5. Known participants (VC firms, hedge funds, etc.)

  • Eyenovia: Institutional accredited investors (specific names not disclosed) 118
  • Hyperliquid Strategies: Public offering participants (pending merger between Nasdaq-listed Sonnet BioTherapeutics and SPAC Rorschach I LLC) 829291

1.6. Details on restrictions, the platform used, KYC/AML requirements, etc.

  • Eyenovia: Private placement with institutional accredited investors, involving non-voting convertible preferred stock and warrants 118
  • Hyperliquid Strategies: SEC-registered public offering, plans to list on Nasdaq under ticker PURR 829291
  • Core Protocol: KYC/KYB required for certain programs like the Delegation Program and large refunds over 10,000 USDC 11930
Ecosystem Funding: Other ecosystem projects have received funding:
  • Kinetiq: Raised $1.75 million from Hyperliquid ecosystem investors since late 2024 61
  • Pear Protocol: $4.1 million strategic funding round led by Castle Island Ventures 120
The funding structure demonstrates Hyperliquid's commitment to community-driven development while allowing related entities to participate in the ecosystem through market-based token acquisition.
Yes, the project team allocated a significant share of tokens to themselves with specific vesting terms:
Core Contributors Allocation: 23.8% of the total HYPE supply (238 million tokens) was allocated to current and future core contributors 11317121. This allocation is subject to a one-year lock-up period from the genesis event (November 29, 2024) 1131122.
Token Allocation Breakdown:
  • Airdrop: 31% (310 million tokens) 101131
  • Future Emissions and Community Rewards: 38.8% (388 million tokens) 11317123
  • Core Contributors: 23.8% (238 million tokens) 11317121
  • Hyper Foundation: 6% (60 million tokens) 1131
  • Community Grants: 0.3% (3 million tokens) 31
Vesting Schedule: The core contributors' tokens are locked for one year after the genesis event, with a major unlock scheduled to begin on November 29, 2025 1187124125+1. This unlock is expected to release approximately 238 million HYPE tokens over a 24-month period extending through late 2027 87124.
Team Compensation Structure: While specific details about ongoing employee compensation in tokens are not provided, the substantial core contributor allocation suggests that team members are significantly compensated through token ownership. The one-year lockup demonstrates a commitment mechanism for the team.
Public Allocation Information: The token allocation breakdown has been made public through official announcements and documentation, though a specific single URL containing the complete breakdown is not provided in the available sources. The information is available through:
No External Allocations: Importantly, no tokens were allocated to private investors, centralized exchanges, or market makers, with the entire supply distributed among community (airdrop), future rewards, core contributors, and foundation 101131.
The allocation structure demonstrates significant team ownership while maintaining community focus through the large airdrop and future community rewards allocation.

3. Did the project team discuss or publicize the listing of the asset on secondary trading platforms before such listing took place? Include instances where the project team discussed listing generally, even if not on a specific platform.

Based on the available documentation, there is no evidence that the Hyperliquid project team engaged in pre-listing promotion or discussion of exchange listings before they occurred.
Current Exchange Listings: HYPE is currently listed on several exchanges:
  • Centralized Exchanges: Bitfinex and Robinhood 484950
  • Native Platform: Hyperliquid's own DEX with HYPE/USDC trading pairs 1011
Listing Approach: The project's approach appears to have been organic, with exchanges choosing to list HYPE based on its market performance and community demand rather than through promotional efforts by the team. This aligns with the project's community-focused approach and avoidance of traditional marketing to exchanges.
No Pre-Listing Promotion Identified: The documentation does not contain any instances of the team discussing or promoting potential exchange listings before they occurred. This is consistent with the project's self-funded, community-driven approach that avoided traditional relationships with centralized exchanges and market makers 1011.
Post-Launch Developments: Exchange listings appear to have occurred after the token's successful launch and community adoption, with announcements coming from the exchanges themselves rather than promotional efforts by the Hyperliquid team.
The absence of pre-listing promotion aligns with the project's stated commitment to community ownership and organic growth rather than traditional token marketing strategies.

4. Are all contemplated features of the asset fully available, partially available, or not available at all? Please describe if more features may be added in the future.

The HYPE token's contemplated features are partially available, with several key functionalities live and others planned for future implementation:
Fully Available Features:
  • Staking and Delegation: Live since December 30, 2024, allowing users to stake HYPE to validators and earn rewards 232425
  • Gas Token Functionality: Active on HyperEVM since February 18, 2025 5
  • Trading: Available on Hyperliquid's native DEX and external exchanges 1011
  • Fee Discounts: Tiered staking system implemented May 5, 2025 19
  • HIP-3 Market Deployment: Enabled October 13, 2025, allowing permissionless perpetual market creation 1516
  • Governance Voting: On-chain validator voting for asset delisting and ticker assignments 1314
Partially Available Features:
  • Permissionless Quote Assets: Basic functionality available, with ongoing development of aligned stablecoin features 1820
  • Liquid Staking: Multiple protocols launched (beHYPE, Kinetiq, Kintsu) with varying features 606171
  • Ecosystem Integration: Over 35 teams building on HyperEVM, with integrations at various stages 46
Planned Future Features:
  • Enhanced Decentralization: Gradual transition from team-operated to community validators 1
  • Expanded HyperEVM Ecosystem: Continued development of smart contract capabilities and third-party applications 46
  • Supply Reduction Implementation: Pending governance proposal to reduce total supply by 45% and modify buyback mechanisms 8485
  • Advanced Governance: Evolution toward more decentralized governance mechanisms as validator set expands
  • Cross-Chain Integrations: Continued development of bridge and interoperability features
Development Timeline: The project maintains active development with regular upgrades and feature additions. The roadmap for 2025 includes complete decentralization, expanding the HyperEVM ecosystem, and establishing Hyperliquid as leading liquidity infrastructure 117.
Feature Maturity: Core trading and staking features are mature and fully functional, while governance and ecosystem features continue to evolve. The permissionless nature of many features allows for organic development by the community and third-party developers.

5. Is the asset available on exchanges in high-risk jurisdictions such as Iran, Cuba, North Korea, etc.?

The available documentation does not provide specific information about HYPE's availability on exchanges in high-risk jurisdictions such as Iran, Cuba, North Korea, or other sanctioned territories.
Known Exchange Listings: HYPE is confirmed to be listed on:
  • Bitfinex 48
  • Robinhood 4950
  • Hyperliquid's native DEX 1011
Compliance Measures: The project demonstrates awareness of compliance requirements:
  • KYC/KYB Requirements: Required for participation in the Delegation Program and for large refunds over 10,000 USDC 11930
  • Jurisdictional Restrictions: The Hyper Foundation requires that Delegation Program applicants not reside in restricted jurisdictions 30
  • Regulatory Compliance: Participants must comply with applicable laws and regulations 30
Exchange Compliance: The listed exchanges (Bitfinex and Robinhood) are regulated entities that typically implement compliance measures including:
  • KYC/AML procedures for users
  • Jurisdictional restrictions based on regulatory requirements
  • Sanctions screening and compliance
Decentralized Access: As HYPE is available on Hyperliquid's native decentralized exchange, users may potentially access it through decentralized means, though this would still be subject to local laws and regulations in their respective jurisdictions.
Regulatory Approach: The project's emphasis on compliance requirements and jurisdictional restrictions in its own programs suggests awareness of regulatory considerations, though specific policies regarding high-risk jurisdictions are not detailed in the available documentation.
Without specific information about exchange policies or explicit project statements regarding high-risk jurisdictions, a definitive assessment of availability in sanctioned territories cannot be made from the available sources.

6. Are the asset and platform designed for or have similar characteristics to gambling or lottery-like games, illicit drugs, pornography, or anything similar?

No, HYPE and the Hyperliquid platform are not designed for or have characteristics similar to gambling, lottery-like games, illicit drugs, pornography, or similar activities.
Platform Purpose: Hyperliquid is designed as a legitimate financial infrastructure platform that combines:
  • A high-performance decentralized perpetual exchange 12
  • A spot trading market 14
  • A Layer-1 blockchain for financial applications 1
  • Smart contract capabilities through HyperEVM 5
Legitimate Financial Services: The platform provides standard financial services including:
  • Perpetual futures trading with proper risk management 1
  • Spot asset trading 1
  • Staking and delegation for network security 2324
  • Liquidity provision mechanisms 1
  • Decentralized market creation 1516
Regulatory Compliance: The project demonstrates commitment to legitimate operations through:
  • KYC/KYB requirements for certain programs 11930
  • Compliance with applicable laws and regulations 30
  • Jurisdictional restrictions for restricted territories 30
  • Professional audit processes for ecosystem components 60
Professional Development: The platform is developed by former high-frequency traders with professional backgrounds in traditional finance 1, and has attracted attention from major financial institutions and protocols 127.
Risk Management: The platform includes proper risk management features such as:
  • Atomic liquidations based on oracle price feeds 1
  • Margin requirements and position limits 26
  • Validator oversight and slashing mechanisms 17
The platform operates as a legitimate decentralized financial infrastructure focused on trading, staking, and blockchain services rather than any form of gambling or illicit activities.

7. Is the asset used on potentially illicit sites such as darknet markets, online casinos, etc.?

The available documentation does not provide specific information about HYPE's usage on illicit sites such as darknet markets or online casinos.
Legitimate Use Cases: The documented use cases for HYPE are focused on legitimate financial activities:
  • Network staking and validation 2324
  • Trading on regulated and compliant exchanges 484950
  • Gas payments for smart contracts on HyperEVM 5
  • Governance participation 1314
  • Liquidity provision and market making 1
Platform Design: Hyperliquid is designed as a legitimate financial infrastructure platform rather than for illicit purposes, with features focused on:
  • Professional trading infrastructure 1
  • Regulatory compliance measures 11930
  • Integration with traditional financial entities 127
Compliance Framework: The project implements compliance measures that would discourage illicit usage:
  • KYC/KYB requirements for certain activities 11930
  • Jurisdictional restrictions 30
  • Professional audit processes 60
Blockchain Transparency: As HYPE operates on a transparent blockchain with a public block explorer (HypurrScan), all transactions are publicly visible, which generally discourages illicit usage compared to privacy-focused cryptocurrencies.
No Specific Illicit Usage Identified: The documentation does not identify any specific instances of HYPE being used on darknet markets, online casinos, or other illicit platforms. The token's primary usage appears concentrated on legitimate trading platforms and the Hyperliquid ecosystem.
Without specific monitoring data or blockchain analytics reports, a comprehensive assessment of potential illicit usage cannot be definitively made from the available sources.

8. Is the asset typically tracked by any known blockchain analytics vendors?

The available documentation does not provide specific information about which blockchain analytics vendors track HYPE or the extent of such tracking.
Blockchain Transparency: HYPE operates on Hyperliquid's Layer-1 blockchain with full transaction transparency through:
Network Characteristics: The transparent nature of Hyperliquid's blockchain makes it suitable for analytics tracking:
  • Account-based model similar to Ethereum 1
  • Public transaction history and address balances
  • Real-time block data streaming to S3 for indexing 5
Potential Analytics Coverage: Given HYPE's characteristics, it would likely be trackable by major blockchain analytics vendors such as:
  • Chainalysis
  • Elliptic
  • TRM Labs
  • Other analytics providers that support custom blockchain networks
Exchange Listings: HYPE's listing on regulated exchanges like Robinhood 4950 and Bitfinex 48 suggests that these platforms have conducted their own compliance and analytics assessments.
Data Accessibility: The availability of real-time block data and comprehensive explorer functionality suggests that analytics vendors could implement tracking if they choose to support the Hyperliquid network.
However, without explicit confirmation from analytics vendors or the Hyperliquid team, the specific extent of analytics coverage cannot be definitively stated from the available documentation.

9. Are the management team or the project subject(s) of publicly announced past or ongoing criminal or civil litigation?

The available documentation does not identify any publicly announced past or ongoing criminal or civil litigation involving the Hyperliquid management team or the project itself.
Identified Team Member: Jeff Yan, the co-founder and CEO of Hyperliquid 20171821+2, has a professional background including:
  • Harvard University graduate (2017) 323334
  • Former HFT Engineer at Hudson River Trading 3537
  • Founder of Chameleon Trading 37
Professional Background: The team consists of former high-frequency traders with professional backgrounds in traditional finance 1, suggesting established careers in regulated financial markets.
Regulatory Compliance: The project demonstrates awareness of legal and regulatory requirements through:
  • KYC/KYB compliance programs 11930
  • Jurisdictional restrictions and legal compliance requirements 30
  • Professional audit processes for ecosystem components 60
Related Entities: While Hyperliquid Strategies (a separate entity focused on HYPE) has filed with the SEC for capital raising 829291, this represents standard regulatory compliance rather than litigation.
Security Incidents: The documentation identifies various security incidents affecting users and the platform 115116130131+2, but these appear to be technical or operational issues rather than legal proceedings against the management team.
Public Profile: The team has maintained a relatively private profile while engaging in legitimate business activities and public interviews 38394041+3.
No criminal or civil litigation involving the management team or project has been identified in the available documentation, though this assessment is limited to publicly available information within the provided sources.

Conclusion

This comprehensive diligence report on Hyperliquid reveals a technically sophisticated project that has achieved significant traction in the decentralized perpetual trading space. The protocol's vertically integrated approach, combining a custom Layer-1 blockchain with high-performance trading infrastructure, represents a notable innovation in DeFi architecture.
Key Strengths: Hyperliquid demonstrates strong technical execution with its HyperBFT consensus mechanism achieving impressive performance metrics (200k orders/second, ~70ms block times). The project's self-funded development model and community-focused token distribution (31% airdrop, no private investor allocation) align with decentralization principles. The active Assistance Fund buyback program ($645M+ in 2025) and growing ecosystem (35+ teams building on HyperEVM) indicate healthy protocol economics and developer adoption.
Primary Risks: The most significant concern is the current centralization of validator operations under team control, though this is acknowledged with planned decentralization. The upcoming token unlock (238M tokens starting November 29, 2025) represents substantial potential selling pressure. The platform has experienced several security incidents, though most relate to user security rather than protocol vulnerabilities.
Regulatory Considerations: The project demonstrates compliance awareness through KYC/KYB requirements and jurisdictional restrictions. The absence of traditional funding rounds and the self-funded model may reduce certain regulatory risks, though the evolving nature of DeFi regulation requires ongoing monitoring.
Overall Assessment: Hyperliquid presents as a legitimate, technically competent project with strong market traction and innovative architecture. While centralization and upcoming token unlocks present near-term risks, the project's technical achievements, community adoption, and planned decentralization roadmap support its position as a significant player in the DeFi infrastructure space.
Sources
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