How to understand Hyperliquid's latest HIP-3 upgrade?

Original author: nairolf

Original compilation: What is the TechFlow

HIP-3?

Here is @HyperliquidX's HIP-3 explained in very simple language.

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

To ensure market quality and protect users, deployers must stake 500,000 HYPE. In the event of malicious market operations, validators have the right to slash the deployer's staking.

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

In simple terms, it is the exchange backend of Hyperliquid.

HIP is short for Improvement Proposals. In simple terms, it is how the protocol is 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 perpetual contract exchanges is authoritative.

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

HIP-3 allows anyone to list a token of their choice. Yes, any token in the literal sense of the word.

However, there are some limitations. Only one token can be listed every 31 hours. Moreover, you need to win the deployment through a Dutch auction (Dutch Auction, also known as a "markdown auction", featuring declining prices, the first taker to close, and time pressure) (using HYPE).

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you need to stake 500,000 HYPE and be responsible for setting up the market.

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

500,000 HYPE This is a security guarantee and the protocol's way of protecting itself.

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

In short, these HYPEs are all about guaranteeing that the tokens you list are legitimate.

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

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

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

To ensure market security, 500,000 HYPE must be staked, which may be slashed in case of suspicious behavior.

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