Good morning.

It’s been a rather calm week in the Hyperliquid ecosystem, though the weekend brought the biggest exploit of the year, which is still sending ripples through crypto DeFi.

While it doesn’t directly affect Hyperliquid, there’s certainly capital lost that can affect demand on other chains; there is likely a contagion effect. Aave’s TVL has dropped $6B so far.

Here’s the initial post-mortem from LayerZero.

We’d expect most tokens to go down in price in the next few days as people are forced to deleverage or get liquidated on some of the loans they had.

So, let’s have a look at how this week went in terms of numbers for our ecosystem.

Information gathered at midnight UTC at the end of the week. Swings are high, so for most up-to-date token prices, check Hyperliquid.

Earlier this past week, Colossus published its profile on Jeff and the Hyperliquid core team.

They went all the way to Singapore and spent several days with the team in their office, so the profile is a mix of Jeff’s beginning, Hyperliquid’s founding story, and the current setup.

Some of the highlights that stood out for us:

These three points explain why some VCs and market makers actively try to trash Hyperliquid on X so often. They still feel rejected because they didn’t get any special deals.

Spend 15 minutes reading the full profile. It’s worth it.

Another source of demand and burn for HYPE with priority fees is live.

It’s in the early stages, and it applies only to IOC (Immediate or Cancel) orders on HIP-3.

This dashboard from ASXN is where you can track how much HYPE this burns. It’s normal to have this as a rather slow start, but it certainly has the potential to generate significant burns, especially in times of higher volatility.

At the same time, creating a vault now costs 10k USDC. The idea is to deprecate HyperCore vaults and instead let the HyperEVM functionality take over with tokenized vaults.

And back to the priority fees, the read auction now applies to both membool transactions and client blocks.

Last but not least, when it comes to tech updates, DEX abstraction will be deprecated. 

Unified account, the default for new users and something everyone can opt into, solves the problem DEX abstraction was supposed to solve, so it’s not needed anymore.

This is another step in improving capital efficiency, along with portfolio margin.

SEC makes a statement that protects interfaces from being considered brokers. While not a law, this clarifying statement is a big step forward from regulation by enforcement that used to happen with the previous administration.

CFTC Chairman Mike Selig mentions Hyperliquid. And he mentions that the goal is to onshore markets like Hyperliquid and have them subject to US regulation. Of course, depending on what those regulations are, this can be either a positive or a negative so we’ll have to see the direction this goes into.

Perps.fun is on testnet. We haven’t dug deeper into it just yet, but the first impression is exactly what we mentioned before. It also doesn’t help promising to go live in March and barely doing testnet in mid-April.

Kinetiq did an investor call on X. If you follow our updates regularly, there’s nothing new in that call, but it’s good to see the team spend time regularly updating everyone on metrics and what’s coming up.

HIP-4 mainnet release is getting close based on previous timelines. There are two things that make us look forward to it: the “outcome markets” that can generate more fees, but also the increase in USDH demand.