The HIP-3 upgrade marks a major leap toward decentralizing Hyperliquid’s derivatives ecosystem, allowing builders to launch perpetual futures markets directly onchain by staking 500,000 HYPE.
Hyperliquid Launches HIP-3 to Boost Onchain Market Innovation
Leading decentralized derivatives platform Hyperliquid has officially activated its HIP-3 upgrade, enabling permissionless creation of perpetual futures markets on its HyperCore network. The update, which went live on October 13, represents a major shift in how decentralized derivatives markets can be deployed and managed.
According to the platform’s latest announcement, any developer can now create a perpetual DEX on HyperCore by staking 500,000 HYPE, the ecosystem’s native token. This change effectively removes centralized control from market deployment, empowering builders and protocols to expand trading options directly onchain.
“HIP-3 lays the groundwork for a fully permissionless and scalable derivatives ecosystem,” said a Hyperliquid administrator on the project’s Discord channel. “While users won’t see immediate interface changes, developers can start deploying new markets once ready.”
Decentralization Milestone for Derivatives Trading
The proposal, formally titled Hyperliquid Improvement Proposal 3 (HIP-3), also integrates with HyperEVM, providing compatibility with Ethereum-based smart contracts. It introduces new security measures such as validator slashing mechanisms and open interest limits to ensure network stability and minimize market manipulation risks.
Industry analysts have described HIP-3 as a milestone for DeFi derivatives, allowing protocol-level market innovation without centralized gatekeeping.
“This puts Hyperliquid ahead of competitors in terms of openness and composability,” noted one DeFi researcher. “It’s a big step toward transforming perpetual trading into a community-driven layer rather than a platform-controlled service.”
HYPE Token Surges Amid Network Upgrade
The market reacted swiftly to the development. HYPE, Hyperliquid’s native governance and staking token, rose 13.4% in the past 24 hours to around $42, giving it a market capitalization of $14.1 billion, based on CoinMarketCap data.
The upgrade follows a volatile weekend in crypto markets, during which Hyperliquid handled nearly $10 billion in liquidations amid a broader $19.3 billion leverage flush. The platform’s resilience during that event has reinforced its position as a key player in decentralized derivatives trading.
With HIP-3 now active, Hyperliquid is moving closer to its goal of complete onchain autonomy, where market creation, governance, and validation are entirely community-driven.
By combining permissionless innovation with robust security standards, Hyperliquid aims to redefine how perpetual markets are launched and maintained — potentially setting a new precedent for the future of decentralized trading infrastructure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.