The Hyper Foundation has unveiled plans to introduce a native token called HYPE for Hyperliquid users, coinciding with the impending launch of the HyperEVM mainnet. This new token will play a crucial role in the proof-of-stake consensus mechanism, HyperBFT, and serve as the backbone for the HyperEVM and future ecosystem developments.

Hyperliquid’s HYPE Token Set to Power HyperEVM

The Hyper Foundation’s announcement of the HYPE token has generated excitement within the Hyperliquid community as they await the HyperEVM mainnet release. This token will be integral to the HyperBFT proof-of-stake consensus and will drive the HyperEVM and subsequent ecosystem growth.

Users can acquire HYPE tokens through two primary channels: eligible users can participate in the initial distribution, while others can obtain a commemorative Hypurr NFT to mark the launch.

The specifics of the HYPE token airdrop, dubbed the “Genesis Event,” will be disclosed at a later date. Recently, daily transaction volumes on the platform have exceeded $1 billion, potentially influenced by a points reward program linked to the upcoming token distribution.

Hyperliquid has consistently maintained daily trading volumes above $1 billion in recent months, solidifying its position in the decentralized derivatives market. The exchange allows users to trade perpetual derivatives and cryptocurrencies with leverage, offering enhanced buying power.

The platform’s core infrastructure is built on a proprietary low-latency trading engine, enabling rapid order execution on the Hyperliquid Chain. This feature is particularly beneficial for high-frequency traders who require quick responses to market changes. As a non-custodial protocol, users retain control of their assets through their crypto wallets.

Decentralized Perpetual Swaps Gain Traction

Hyperliquid focuses on perpetual swaps (perps), aligning with a broader trend in decentralized exchanges. These instruments allow traders to maintain positions indefinitely, provided they have sufficient collateral.

Perpetual swaps, which gained popularity through centralized exchanges like BitMex in 2016, have since become a staple in the DeFi space and a key driver of interest in platforms like Hyperliquid.

While the exchange has experienced significant growth in trading volume, this doesn’t directly translate to increased team profits. According to the platform’s documentation, all fees are channeled to the community, specifically to the Hyperliquid Pool (HLP) and the insurance fund. This approach reinforces the platform’s decentralized and community-centric ethos, prioritizing user interests over traditional profit models.

A Layer 1 Platform for Crypto Derivatives

Hyperliquid is a decentralized trading platform that enables users to trade perpetual derivatives by pooling liquidity from multiple sources, offering enhanced trading opportunities and deeper liquidity.

The platform supports leveraged trading, allowing users to borrow funds to amplify their trading positions on various cryptocurrencies.

Operating as a Layer 1 application-specific blockchain, Hyperliquid features an ecosystem of native tokens like Purr and Points, which serve different purposes within the platform’s economy and reward system.