Felix will shut down its DEX starting from June 19, becoming the first official HIP-3 deployer to close operations.

According to BlockBeats, on June 8, decentralized derivatives platform Felix announced that due to the suspension of stablecoin USDH, Felix DEX based on HIP-3 and all running markets will gradually shut down starting from June 19, with all settlements completed by June 20. The platform reminds traders to close their positions before then. Each market will be settled in sequence, with a one-hour interval between adjacent markets.

Community member Shaunda Devens commented that Felix is the first HIP-3 deployer to officially shut down, and this may be just the beginning. Apart from TradeXYZ, the returns other deployers obtained through HYPE staking and auctions are not attractive.

However, Hyperliquid community member aaalex.hl pointed out that Felix’s shutdown seems to be mainly related to the cessation of USDH, rather than market share competition from TradeXYZ.

Shaunda Devens responded that while USDH is indeed one of the reasons, Felix chose to close the DEX completely, rather than continue as a HIP-3 deployer by launching a USDC trading pair. Although it was not directly impacted by TradeXYZ, since TradeXYZ dominated the main markets, other deployers could only turn to niche markets, which are hard to cover auction costs and cannot justify the opportunity cost of staking 500,000 HYPE.

She further revealed that Hyperion, which leased HYPE to Felix, is now reclaiming the related tokens and plans to reallocate the funds to more profitable strategies.