Trading onchain coins onchain, BUT with leverage!
We can now make 1000x MUCH faster! (And lose our life savings twice as fast too ๐)
Let us dive into the groundbreaking DEX @HyperliquidX. ๐
Intro
Hyperliquid runs on its own L1, where its order book is fully onchain.
The chain utilizes Tendermint consensus and is able to perform finality at <1 second.
It also claims to be able to do 20k orders per second.
Trading Pairs
Hyperliquid already supports 40 over assets, which is much more than most competitors such as $GMX.
Popular pairs that are rarely seen elsewhere such as $UNIBOT and $RLB are also available.
Liquidity
Hyperliquid allows provision of liquidity by the community through the Hyperliquid Provider (HLP) vault.
An offchain market making strategy will be run on the USDC provided, and the trades can be tracked onchain.
The strategy calculates a fair price based on tick data from Hyperliquid and large CEXes.
We can see that within just a month, HLP has made almost $600k in profits, with a max drawdown of 5.38%.
The APR is now at a staggering 291%.
Fees
Hyperliquid offers a competitive fee structure compared to other perp DEXes which usually offer a 5bps (0.05%) fee for takers.
Not only that, fees are also accrued back to the community which has provided for HLP.
Token Airdrop?
Hyperliquid has also hinted at a future token, as they state in the docs that it will be needed to secure their L1 (POS).
Since it is still in mainnet alpha, it is possible that providing liquidity and/or trading on Hyperliquid would qualify one for airdrops.
It is nice to see a perp DEX that finally offers an experience that rivals that of CEXes.
With a proper fiat onramp service, it could be one of the few perp DEXes that CEX users choose to trade on.
Some interesting points that I wanted to address ๐
The pairs with the highest trading volume are $APE $CFX $SEI and so on.
To my surprise there was little volume in the exotic pairs like $RLB $HPOS and $UNIBOT.
It seems like perps traders still prefer to trade the generic altcoins even when exotic options are offered.
Could it be that exotic coins are much harder to trade, perhaps more unpredictable?
Also, why are the onchain degens not max longing these coins here?
Conclusion
Interesting to see innovation in the perps space after a while of just GMX forks.
Perhaps I will provide some liquidity there soon.
What do you guys think? Is it something you would try out?
Tagging chads to check out Hyperliquid!
Follow them too!
@LouisCooper_
@RealDegenGMX
@Deebs_DeFi
@CryptoGideon_
@rektdiomedes
@crypto_linn
@Flip_Research
@Cryptoalpharian
@CryptoShiro_
@18decimals
@0xTindorr
@Crypt0_Andrew
@kevinle_bw
@FungiAlpha
@0xTindorr
More chads to check out Hyperliquid, drop them a follow too!
@CryptoBlooom
@Nicknick2109
@defi_antcrypto
@arndxt_xo
@DAdvisoor
@0xShinChannn
@stacy_muur
@_FabianHD
@monosarin
@thedailydegenhq
@Flowslikeosmo
@CryptoYusaku
@CryptoNikyous
@Defi0xJeff
@KODOTHH