Hyperliquid: The Blockchain to House All Finance
This is the trillion dollar outcome Jeff and team are optimizing for. But what does this actually mean?
The finance industry is still stuck in 1980. We got some fintechs that offer nice frontend apps but the settlement and the clearing is still done on a tech stack that is 40+ years old. Many banks still use COBOL, which is a very outdated and old programming language.
While this is great for the handful of IT consultants that can charge whatever they want to maintain those systems, it creates a way bigger problem:
Banks actually have no idea how much money they really have. It's all more or less a guessing game. They have a lot of data but no good way to use it in an efficient way. While this is oversimplified and the systems did get better in the last years, the problem still exists.
🔗 Blockchain enters the Scene
Over the last years, we have seen a lot of discussion around ledgers for companies and institutions. Some of them launched their own think tanks, and many will build their own L2s on top of Solana or Ethereum.
Why? They still want control, but this doesn't fix the problem. While it's better to have transactions onchain instead of a database that is written in COBOL, it still leads to fragmentation.
What if we could have one place to do all our finances in an easy and transparent way? For that, we would need deep liquidity, good UI/UX, and most importantly, an incentive structure that attracts good-faith players.
🌊Enter Hyperliquid
Hyperliquid is the biggest decentralized Perp Trading Venue in the World and will soon be the biggest Perp Trading Venue in the World. But that's just the beginning. The real power is in Builder Codes and HIP-3.
When people hear that Hyperliquid intends to become the Blockchain to House all Finance, they think it's crazy or way too ambitious for just one team to achieve. And they are right.
But it's not the team that will bring this vision to life but the 10,000+ people that will build on top of Hyperliquid.
Right now, we have 279 Builders utilizing 'Builder Codes' to build their companies on top of Hyperliquid. They tap into Billions of Liquidity for free.
Actually, they get paid for it because they get to charge 1% on Spot Trades and 0.1% on Perps.
@phantom made $4.61M in fees in the last 90 days from it. It took them only 4 weeks to implement.
4 weeks to add $18M in yearly revenue to your business for no extra cost and no technical risk. They are owning the contribution. But it's not just big projects that already have a lot of distributional power.
Builder Codes are enabling all kinds of new innovation to happen. Whether it's @BasedOneX that offers easy mobile experience, @OverdraftX that works on OnRamps, or @pear_protocol for Pair Trading on top of Hyperliquid.
Builder Codes is THE Unlock for DeFi Applications.
Think about what @Shopify did for e-com businesses and small entrepreneurs. Hyperliquid's Builder Codes does that to the finance industry.
Today, we got 279 builders; that number doubled since June and is only going up.
Hyperliquid nailed the Perps Product, but there are still some parts missing to the Puzzle:
📊 Spot Trading
The spot markets on HL got way better thanks to @hyperunit. They enable and make spot markets for BTC, ETH, SOL, PUMP, and FARTCOIN on Hyperliquid.
Today, Hyperliquid is the best and cheapest venue to spot trade those assets.
Unit uses the fees they make to buy $HYPE. And they are not alone with that.
It's the exchange of choice for Whales to buy or sell Billions in Bitcoin.
That's not a marketing slogan. That's simply a fact provable on chain. Shoutout to @mlmabc for his work.
Besides @hyperunit, there is also @HyBridgeHL who are busy buying up spot tickers and make markets for LINK and other assets on Hyperliquid.
For smaller Coins we will have @RubiFi_HL to make spot markets and increase Volume while decreasing the spread.
💰 Stablecoins
In the interview with @KevinWSHPod, Jeff mentioned that there are a lot of low-hanging fruits on Hyperliquid that can be picked up by other teams. One of those fruits is a native stablecoin.
The announcement that there will be a validator vote on which team gets the right to buy the ticker USDH got a lot of attention this week. We have seen strong proposals from @Paxos, @fiege_max, @Frax, @ethena_labs and many others.
We also have to respect @Tether_to for seeing where the puck is going. They launched @USDT0_to on HyperEVM and push hard. I would not be surprised to see a proposal to run USDH from them soon.
To have a native stablecoin on Hyperliquid is a huge step and unlocks a lot of new possibilities. The earned yield on USDH can fund buybacks or new innovative implementations of that stablecoin.
Stablecoins themselves are the biggest business in crypto and one of the most profitable businesses to run in the world.
@Tether_to earned $4.9 Billion in profit last quarter and is the 18th largest holder of US Treasuries.
Now add this business on the Billions Hyperliquid is already making from Perps fees, and we get closer to that trillion dollar outcome.
The big piece of the cake is stables on HyperCore, and that is about $5 Billion in USDC. While @circle did announce support for USDC on HyperEVM we are still waiting for it to be implemented.
Stablecoins are not just about the yield that maybe is earned and run back into the business in some way.
It is the crucial piece to enable day-to-day transactions.
A native stablecoin + gasless stablecoin transactions are bigger than any perps feature ever could be. Most people don't care about perps or trading in general.
Everyone needs to receive and send money.
Everyone needs to pay their bills.
In countries like Nigeria, stablecoin adoption already is huge because there is no alternative. Actually, Nigeria is a big reason @trondao is still alive. You can watch transactions on Tron shooting up during Nigerian hours.
It's not just Nigeria; basically, every country with high inflation or big exchange rates saw a surge in stablecoin adoption. LATAM is the best example for this. Millions of people in Brazil and Argentina are using stablecoins.
Not because they are into the tech or care about crypto - simply because it is more stable than their local currency.
Slowly but surely, people in America, Asia, and Europe are also waking up to the fact that sending money with bank accounts is stupid. You pay a lot of fees, it takes forever, and your account can be frozen at any time for no reason. Especially true if you try to transfer money between two countries.
🚀 Builder Code Apps + Native Stablecoin with Gasless Transfers = THE OPPORTUNITY IN FRONT OF US.
The Hyperliquid UI/UX is good for some but bad for others, and that is okay because we will have highly targeted builder code apps for special markets.
@BasedOneX, @DexariDotCom, @try_supercexy, and many others are onboarding users that Hyperliquid itself could not onboard.
If you want to build something and make Millions or even Billions, I think the best route is to pick a huge market and hyper optimize your builder code product for that market.
Russian market is different to LATAM market. A builder from the US won't be able to compete for that market because he doesn't get it the way you do. If you understand culture, you can build something huge without reinventing the wheel.
🔧 Missing puzzle 2: OnRamps
One missing piece for Hyperliquid to become the Blockchain to House all Finance are OnRamps and OffRamps. A good way to bring cash into crypto or crypto back to cash.
Teams like @Overdraft are working on that. The hard part is actually bringing money into crypto with low fees. Once you have done that, you got tons of possibilities.
You can Offramp the cash if you want, and I understand this is necessary to pay tax, etc. But for everything else, I think it is more interesting to have money onchain and earn yield.
I am not talking about high lev trading or crazy yield farms but rather stuff like holding @Theo_Network earning 4% yield on US treasury bills. But yield strategies are a whole other topic, and accounts like @phtevenstrong are the best for that.
You can also spend money directly with @BasedOneX and @0xHyperBeat credit cards. The beauty of this is that you can hold money in @Hyperwavefi whHLP which earns yield and spend the earned yield.
⚡ One more Thing: HIP-3
HIP-3 is a huge step for Hyperliquid to Become the Blockchain to house all finance.
TL;DR: it allows anyone to create a perp market.
To do that, you need to either stake 1M $HYPE or qualify for @kinetiq_xyz launch product. @0xHyperBeat als created a similar product with @ether_fi.
After you created your perp market, you get to set fees. But it's not just for perp markets. You can set oracles, do Pre-Sales, Tokenize things, etc.
We will have perp markets for compute with @computeindex, perps for volatility with @volmexfinance , pre-ipo equities with @ventuals_ and so much more.
Basically, anything you can think of, there will be a perp market for it. This is also the main driver why DAT's like @HyperionDeFi and @HypeStrat make sense. They accumulate a lot of $HYPE and use it to create markets and earn fees.
$HYPE is the best asset for DATs since you actually can do something with it compared to $BTC or $ETH.
Also they will TWAP buy $HYPE with $300m so you are not late to $HYPE. In fact, you are early.
Conclusion
TL;DR: You are not bullish enough on $HYPE.
The Blockchain to House all Finance is real and coming to fruition.
If you want to build a product Hyperliquid is the best place for you. There are so many great examples and the Hyperliquid community welcomes you to build.
Please bookmark and never check again, also share with your friend that will never read it but will ask you what to buy at bull market tops in a few months.
P.S.: I did not even talk about fee reduction, buybacks and all the other beautiful pieces. There is too much going on to put everything in just one writeup.
This is the trillion dollar outcome Jeff and team are optimizing for. But what does this actually mean?
The finance industry is still stuck in 1980. We got some fintechs that offer nice frontend apps but the settlement and the clearing is still done on a tech stack that is 40+ years old. Many banks still use COBOL, which is a very outdated and old programming language.
While this is great for the handful of IT consultants that can charge whatever they want to maintain those systems, it creates a way bigger problem:
Banks actually have no idea how much money they really have. It's all more or less a guessing game. They have a lot of data but no good way to use it in an efficient way. While this is oversimplified and the systems did get better in the last years, the problem still exists.
🔗 Blockchain enters the Scene
Over the last years, we have seen a lot of discussion around ledgers for companies and institutions. Some of them launched their own think tanks, and many will build their own L2s on top of Solana or Ethereum.
Why? They still want control, but this doesn't fix the problem. While it's better to have transactions onchain instead of a database that is written in COBOL, it still leads to fragmentation.
What if we could have one place to do all our finances in an easy and transparent way? For that, we would need deep liquidity, good UI/UX, and most importantly, an incentive structure that attracts good-faith players.
🌊Enter Hyperliquid
Hyperliquid is the biggest decentralized Perp Trading Venue in the World and will soon be the biggest Perp Trading Venue in the World. But that's just the beginning. The real power is in Builder Codes and HIP-3.
When people hear that Hyperliquid intends to become the Blockchain to House all Finance, they think it's crazy or way too ambitious for just one team to achieve. And they are right.
But it's not the team that will bring this vision to life but the 10,000+ people that will build on top of Hyperliquid.
Right now, we have 279 Builders utilizing 'Builder Codes' to build their companies on top of Hyperliquid. They tap into Billions of Liquidity for free.
Actually, they get paid for it because they get to charge 1% on Spot Trades and 0.1% on Perps.
@phantom made $4.61M in fees in the last 90 days from it. It took them only 4 weeks to implement.
4 weeks to add $18M in yearly revenue to your business for no extra cost and no technical risk. They are owning the contribution. But it's not just big projects that already have a lot of distributional power.
Builder Codes are enabling all kinds of new innovation to happen. Whether it's @BasedOneX that offers easy mobile experience, @OverdraftX that works on OnRamps, or @pear_protocol for Pair Trading on top of Hyperliquid.
Builder Codes is THE Unlock for DeFi Applications.
Think about what @Shopify did for e-com businesses and small entrepreneurs. Hyperliquid's Builder Codes does that to the finance industry.
Today, we got 279 builders; that number doubled since June and is only going up.
Hyperliquid nailed the Perps Product, but there are still some parts missing to the Puzzle:
📊 Spot Trading
The spot markets on HL got way better thanks to @hyperunit. They enable and make spot markets for BTC, ETH, SOL, PUMP, and FARTCOIN on Hyperliquid.
Today, Hyperliquid is the best and cheapest venue to spot trade those assets.
Unit uses the fees they make to buy $HYPE. And they are not alone with that.
It's the exchange of choice for Whales to buy or sell Billions in Bitcoin.
That's not a marketing slogan. That's simply a fact provable on chain. Shoutout to @mlmabc for his work.
Besides @hyperunit, there is also @HyBridgeHL who are busy buying up spot tickers and make markets for LINK and other assets on Hyperliquid.
For smaller Coins we will have @RubiFi_HL to make spot markets and increase Volume while decreasing the spread.
💰 Stablecoins
In the interview with @KevinWSHPod, Jeff mentioned that there are a lot of low-hanging fruits on Hyperliquid that can be picked up by other teams. One of those fruits is a native stablecoin.
The announcement that there will be a validator vote on which team gets the right to buy the ticker USDH got a lot of attention this week. We have seen strong proposals from @Paxos, @fiege_max, @Frax, @ethena_labs and many others.
We also have to respect @Tether_to for seeing where the puck is going. They launched @USDT0_to on HyperEVM and push hard. I would not be surprised to see a proposal to run USDH from them soon.
To have a native stablecoin on Hyperliquid is a huge step and unlocks a lot of new possibilities. The earned yield on USDH can fund buybacks or new innovative implementations of that stablecoin.
Stablecoins themselves are the biggest business in crypto and one of the most profitable businesses to run in the world.
@Tether_to earned $4.9 Billion in profit last quarter and is the 18th largest holder of US Treasuries.
Now add this business on the Billions Hyperliquid is already making from Perps fees, and we get closer to that trillion dollar outcome.
The big piece of the cake is stables on HyperCore, and that is about $5 Billion in USDC. While @circle did announce support for USDC on HyperEVM we are still waiting for it to be implemented.
Stablecoins are not just about the yield that maybe is earned and run back into the business in some way.
It is the crucial piece to enable day-to-day transactions.
A native stablecoin + gasless stablecoin transactions are bigger than any perps feature ever could be. Most people don't care about perps or trading in general.
Everyone needs to receive and send money.
Everyone needs to pay their bills.
In countries like Nigeria, stablecoin adoption already is huge because there is no alternative. Actually, Nigeria is a big reason @trondao is still alive. You can watch transactions on Tron shooting up during Nigerian hours.
It's not just Nigeria; basically, every country with high inflation or big exchange rates saw a surge in stablecoin adoption. LATAM is the best example for this. Millions of people in Brazil and Argentina are using stablecoins.
Not because they are into the tech or care about crypto - simply because it is more stable than their local currency.
Slowly but surely, people in America, Asia, and Europe are also waking up to the fact that sending money with bank accounts is stupid. You pay a lot of fees, it takes forever, and your account can be frozen at any time for no reason. Especially true if you try to transfer money between two countries.
🚀 Builder Code Apps + Native Stablecoin with Gasless Transfers = THE OPPORTUNITY IN FRONT OF US.
The Hyperliquid UI/UX is good for some but bad for others, and that is okay because we will have highly targeted builder code apps for special markets.
@BasedOneX, @DexariDotCom, @try_supercexy, and many others are onboarding users that Hyperliquid itself could not onboard.
If you want to build something and make Millions or even Billions, I think the best route is to pick a huge market and hyper optimize your builder code product for that market.
Russian market is different to LATAM market. A builder from the US won't be able to compete for that market because he doesn't get it the way you do. If you understand culture, you can build something huge without reinventing the wheel.
🔧 Missing puzzle 2: OnRamps
One missing piece for Hyperliquid to become the Blockchain to House all Finance are OnRamps and OffRamps. A good way to bring cash into crypto or crypto back to cash.
Teams like @Overdraft are working on that. The hard part is actually bringing money into crypto with low fees. Once you have done that, you got tons of possibilities.
You can Offramp the cash if you want, and I understand this is necessary to pay tax, etc. But for everything else, I think it is more interesting to have money onchain and earn yield.
I am not talking about high lev trading or crazy yield farms but rather stuff like holding @Theo_Network earning 4% yield on US treasury bills. But yield strategies are a whole other topic, and accounts like @phtevenstrong are the best for that.
You can also spend money directly with @BasedOneX and @0xHyperBeat credit cards. The beauty of this is that you can hold money in @Hyperwavefi whHLP which earns yield and spend the earned yield.
⚡ One more Thing: HIP-3
HIP-3 is a huge step for Hyperliquid to Become the Blockchain to house all finance.
TL;DR: it allows anyone to create a perp market.
To do that, you need to either stake 1M $HYPE or qualify for @kinetiq_xyz launch product. @0xHyperBeat als created a similar product with @ether_fi.
After you created your perp market, you get to set fees. But it's not just for perp markets. You can set oracles, do Pre-Sales, Tokenize things, etc.
We will have perp markets for compute with @computeindex, perps for volatility with @volmexfinance , pre-ipo equities with @ventuals_ and so much more.
Basically, anything you can think of, there will be a perp market for it. This is also the main driver why DAT's like @HyperionDeFi and @HypeStrat make sense. They accumulate a lot of $HYPE and use it to create markets and earn fees.
$HYPE is the best asset for DATs since you actually can do something with it compared to $BTC or $ETH.
Also they will TWAP buy $HYPE with $300m so you are not late to $HYPE. In fact, you are early.
Conclusion
TL;DR: You are not bullish enough on $HYPE.
The Blockchain to House all Finance is real and coming to fruition.
If you want to build a product Hyperliquid is the best place for you. There are so many great examples and the Hyperliquid community welcomes you to build.
Please bookmark and never check again, also share with your friend that will never read it but will ask you what to buy at bull market tops in a few months.
P.S.: I did not even talk about fee reduction, buybacks and all the other beautiful pieces. There is too much going on to put everything in just one writeup.
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