A Simple Explanation of Hyperliquid's HIP-3 Upgrade Today

Author: nairolf
Translation: TechFlow

What is HIP-3?

Below is a very simple explanation of HIP-3 from @HyperliquidX.

HIP-3 allows developers to deploy perpetual contract markets on HyperCore.

To ensure market quality and protect users, deployers must stake 500,000 HYPE. If malicious market manipulation occurs, validators have the right to slash the deployer's stake.

You should already be familiar with HyperCore, right? It includes the state of the margin and matching engine.

Simply put, it is the backend of the Hyperliquid exchange.

HIP stands for Improvement Proposals. In short, it is the way protocols are changed.

The main purpose of HIP-3 is to allow anyone to deploy a perpetual contract market.

Currently, the process of adding new tokens to a perpetual contract exchange is permissioned.

This means the core team decides which tokens to add based on demand, trading volume, and other criteria.

HIP-3 allows anyone to list any token of their choice. Yes, literally any token.

However, there are some restrictions. Only one token can be listed every 31 hours. Also, you need to win the deployment right through a Dutch Auction (note: Dutch Auction is a descending price auction where the first to accept the price wins, and there is time pressure) using HYPE.

You need to stake 500,000 HYPE and are responsible for setting up the market.

This means choosing an oracle, defining leverage limits, handling settlement logic, and ensuring everything runs securely.

500,000 HYPE is a security guarantee and a way for the protocol to protect itself.

If strange manipulation occurs in your token market, validators can vote to slash your HYPE.

In short, this HYPE is the guarantee that the token you list is legitimate.

As the deployer of the token, you can take 50% of the total market fees. You can even set additional custom fees.

In other words, you can earn a portion of the fees from users trading the token you listed.

HIP-3 allows anyone to list tokens on the Hyperliquid perpetual contract exchange.

To ensure market security, 500,000 HYPE must be staked, and if suspicious behavior occurs, this stake may be slashed.