Hello alpha seeker,
What a week it has been. Price action might have been pretty boring but there was no shortage of important developments.
Let’s dive in, shall we?
TOKEN | PRICE | PERFORMANCE |
|---|---|---|
HYPE | $29.022 | -5.47% |
KNTQ | $0.1364 | +8.43% |
KPIs | VALUE | PERFORMANCE |
Weekly Revenue | $8.4M | -27.59% |
Open Interest | $5.38B | +5.96% |
Weekly Perps Volume | $26.4B | -31.72% |
HIP-3 Open Interest | $914M | +27.96% |
Weekly HIP-3 Volume | $5.55B | -24.00% |
Perps Volume vs Binance | 14.25% | +4.03% |
Information gathered at midnight UTC at the end of the week. Swings are high, so for most up-to-date token prices, check Hyperliquid.
HYPERLIQUID UPDATES
Cross-margin for HIP-3 was enabled, unlocking significant capital efficiency across the whole ecosystem
The network upgrade already took place but the change still has to be rolled out by individual HIP-3 deployers on the assets that meet requirements.
It won’t be instant, but it will be extremely useful once this is live.
It’s also a key step for portfolio margin across Hyperliquid.
To give you a short explanation:
Isolated margin means that you have to lock capital for that specific position.
Cross margin means that the stablecoin balance you have in your “perps” account is all used as margin. So your “entire balance” is the margin and at risk.
Portfolio margin means that certain spot assets like HYPE and BTC can be used to borrow stablecoins for trades and margin, across the whole ecosystem. This means you don’t have to sell all your spot positions to leverage trade on perps, and you don’t have to go through a different lending protocol either.
The last point is in pre-alpha on mainnet with very low borrow limits and restricted to accounts with a certain amount of trading volume.
This kind of capital efficiency is likely to increase OI and volume baseline when it’s scaled up.
More OI and volume also equals more fees, which equals more HYPE burnt.
Jeff, Hyperliquid founder, does an interview with When Shift Happens
We’ll share more detailed notes from this in a couple of days, but it’s worth listening to it in full yourself.
The core team and its principles
The role of HyperEVM and its success and failure so far.
HIP-3
Why Hyperliquid core team is not building everything themselves
Hyperliquid Policy Center announced with 1M HYPE funding from Hyper Foundation
Aka HPC, this is a research and advocacy nonprofit focused on advancing a clear path for DeFi to thrive in the US.
Their work is focused on introducing policymakers to Hyperliquid and bridge the gap between the law and next-gen market infrastructure.
In other words, they are there to lobby and explain DeFi and Hyperliquid to US policymakers.
Our take: An encouraging step to make sure Hyperliquid is represented with US policymakers. We already knew the team is well aware of it, given the submission it made to the CFTC and the fact that they worked with J Christopher Giancarlo, former Commissioner of the CFTC.
OTHER NEWS
Sterling, former Circle BD, joins Hyperliquid Labs with the goal of expanding builder code integrations globally. First BD hire by Hyperliquid Labs, generally viewed positively by the community. We’re curious how this pays off, given the builder code integrations that already happened. Will we see a CEX pivot to Hyperliquid builder codes?
Cancel prioritization will move from mempool to being fully onchain in the near future. This should help improve the microstructure, resulting in better liquidity for end users and reduced toxic flow even more.
Phantom wallet introduced spot HYPE. You can swap, send, and receive spot tokens directly in Phantom but you still cannot have app interactions.
Dreamcash season 1 went live. Traders can earn XP by using the Dreamcash mobile or web app, while all traders who use the Dreamcash HIP-3 markets from mobile, web, or the Hyperliquid frontend can get a share of $200k USDT in weekly rewards. The downside: Dreamcash app fees are quite high relative to Hyperliquid fees. Don’t rush to trade there expecting the rewards and airdrop to be the next “HYPE-like airdrop”.
WHAT TO LOOK OUT FOR
HyperLend TGE is one step closer. We already published our analysis about it. Give it a read here in case you missed it.
Hyperbeat continues to open more access to its Liquid Banking features so if you want to spend on credit using your crypto as collateral, it’s worth having a look. Keep in mind risks like smart contract risk and tax compliance with such products.
