Decentralized exchange Hyperliquid has introduced an update that enables third parties to independently launch their own perpetual swap contracts on the platform.
Hyperliquid Improvement Proposal 3 (HIP-3) comes into force on Monday, according to the official Hyperliquid Discord channel. This change introduces permissionless, builder-deployed perpetual futures contracts, marking a major step toward fully decentralized perpetual futures listings.
HIP-3’s implementation on the decentralized exchange (DEX) allows anyone staking 500,000 HYPE ($20.5 million at the time of writing) to deploy their own perpetual swap contract with independent margining, orderbooks and parameters.
Deployers “can set a fee share of up to 50%” on top of the base fee rate and are responsible for market definition — including the oracle and contract specification — as well as market operation, including setting oracle prices, leverage limits, and settling if needed.
Perpetual swaps are futures derivative contracts that track the price of an underlying asset but have no expiration date, allowing traders to hold leveraged long or short positions indefinitely. Their prices stay close to the spot market through a funding rate mechanism that regularly transfers payments between longs and shorts.
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Long in the works
HIP-3’s minimum viable product implementation on testnet has been live since late September, with a network upgrade taking place on Monday, enabling it on mainnet. Blockchain infrastructure company QuickNode said in its analysis that HIP-3 makes the market more responsive to the needs of builders:
“HIP-3 replaces gatekeepers with code so teams can ship markets as fast as they can design them while keeping quality and user safety intact through onchain rules and incentives.“
The proposal eliminates listing fees seen on centralized exchanges, reduces fixed costs by sharing infrastructure and allows builders to recover costs through fee-sharing.
“Execution quality rises while transaction costs fall, which drives more volume into HIP-3 markets further subsidizing builders through fee revenue,” QuickNode wrote in its analysis.
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Hyperliquid turns into financial infrastructure
Blockchain data layer Chainsight also wrote in an analysis that HIP-3 breaks the current model, where only exchange operators can list assets. This, according to Chainsight, turns “Hyperliquid from a single exchange into permissionless financial infrastructure.”
Chainsight expects that this will lead to the creation of new asset classes in decentralized finance (DeFi), since “now, virtually any data feed can become a tradable market.” This includes realized volatility, pre-IPO valuations of companies, traditional forex pairs, stock indexes and exotic derivatives such as correlation swaps.
Synthetic markets protocol Ventuals also plans to leverage HIP-3 to allow for exposure to the price action of private companies. The company said that “by creating perpetual futures (otherwise known as perps) tied to private company valuations, Ventuals gives anyone the ability to express a view on the trajectory of companies they follow closely.”
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