hip-3

Hyperliquid testnet has added compliance operation control features such as whitelisting, forced liquidation, and collateral transfer. Currently, a node named "Kraken HIP-3 test DEX" is testing these licensed features, and 10 wallets have been whitelisted.Although the testnet supports permissionless deployment, in light of Kraken's parent company's recent business expansion trends, the community speculates that Kraken may be the first CEX to test this compliant DEX functionality.

ARK Invest Research Director lorenzoark suggested that Hyperliquid acquire the U.S. compliant trading platform Gemini, transforming it into a U.S. regulated HIP-3 and HIP-4 deployment platform. Hyperliquid is in contact with the CFTC and SEC to support U.S. regulated companies in offering perpetual contract trading and settlement on its public chain. Gemini went public in September 2025 with a valuation of $3.3 billion, and its current market value is approximately $450 million, down over 85% from its IPO. Its core business is under pressure, having scaled back operations in the UK, EU, and Australia, with staff reduced by about 40% from a peak of 402 to 402, and platform assets decreasing from $18.2 billion to $8.4 billion, with spot trading volume down 66%.Approximately $450 million would secure Gemini's complete U.S. regulatory license portfolio, including the NYDFS trust license, CFTC-regulated DCM (Gemini Titan), DCO (Gemini Olympus), an ongoing FCM, nearly all state MTLs, and broker-dealer licenses. In comparison, Kraken's parent company acquired Bitnomial for up to $550 million, making Gemini's overall market value lower. After the acquisition, it could inherit operational assets such as approximately 580,000 monthly active trading users, 1.72 million lifetime users, $8.4 billion in platform assets, quarterly spot volume of $3.8 billion, and approximately $180 million in annualized revenue.

Blockworks research indicates that Hyperliquid is seeking a compliant path in the U.S. market through regulatory advocacy and technical adjustments. The report states that Hyperliquid's modular architecture (HyperCore is responsible for trading and clearing, Deployer is responsible for market creation, Builder is responsible for user access) naturally corresponds to the functional division of DCM, DCO, and FCM in traditional finance, but is implemented on-chain.Hyperliquid is currently blocked due to conflicts with U.S. market structure laws. The report believes that the licensed HIP-3 deployment (DEX for whitelisted users only) is key to the compliance path, where registered entities can assume KYC and compliance obligations while bridging liquidity through whitelisted market makers. Trump's recent announcement that the CFTC chairman intends to include Hyperliquid in the U.S. regulatory framework is seen as a positive signal. The Hyperliquid policy center has submitted recommendations to the CFTC and SEC, advocating for allowing registered institutions to use HyperCore while assuming compliance responsibilities.

According to the official announcement, the Hyperliquid HIP-3 market's open interest (OI) has reached a historic high of $4.3 billion.In addition, Hyperliquid stated that it will expand the HIP-1 specification based on community feedback and has added relevant features for HIP-4; the non-validator nodes of the Hyper Foundation are now open to high-quality infrastructure providers and can serve as reliable peer nodes. Regarding HyperEVM and HyperCore, Buoy Finance has deployed a vault system for HyperCore trading through the HyperEVM customized vault.

Hyperliquid News posted on the X platform that the value of open contracts for HIP-3 has reached a historic high of 4.12 billion dollars.

Hyperliquid News posted on the X platform that the open interest of HIP-3 has once again exceeded $4 billion, reaching $4.01 billion. This is an increase of 17.6% compared to $3.41 billion one month ago. It has increased by 65.7% compared to $2.42 billion three months ago.Compared to $682.45 million six months ago, it has increased by 487.6%. Compared to $49.97 million nine months ago, it has increased by 7,924.8%. Previously, it was reported that the open interest of HIP-3 first exceeded $4 billion, setting a new historical high.

Hyperliquid on-chain Perp DEX Trade.xyz has used its HIP-3 revenue to purchase HYPE for the first time, buying 2000 HYPE, worth approximately $108,000.

The Hyperliquid testnet recently introduced a new feature called "stars." This feature introduces an optional trading address whitelist mechanism for the HIP-3 DEX, allowing deployers to restrict trading to only whitelisted addresses for opening or increasing positions. Currently, the whitelist size limit on the testnet is 10,000 addresses, while unauthorized addresses can still deposit into accounts and submit orders limited to reducing positions, in order to close or lower existing positions.Community members analyze that this feature is expected to expand the application scenarios of the HIP-3 DEX. For example, tokenized stocks, real-world assets (RWA), institutional indices, and other regulated products can open trading only to users who have completed identity verification (KYC) or meet access requirements through the address whitelist. At the same time, new markets can first open testing to market makers, partners, or community members, reducing the risk of encountering junk trading, wash trading, or malicious manipulation in the early stages of the market, while allowing non-whitelisted users to continue reducing positions, thus avoiding situations where users cannot exit their holdings due to permission restrictions.In addition, the stars feature does not change the permissionless nature of the Hyperliquid base layer but adds an optional access control feature that developers can enable or disable based on their needs. This means that scenarios such as DAOs, trading clubs, private equity funds, or partner-exclusive markets can build closed trading markets with access mechanisms while maintaining the advantages of the Hyperliquid matching engine and settlement layer. Currently, this feature is still in the testnet phase, and the official has not yet announced its specific uses; further application scenarios await confirmation with the mainnet launch and more developer documentation.

According to data from The Block, the trading volume of Hyperliquid's permissionless perpetual contract framework HIP-3 has risen from about 2% at the beginning of the year to approximately 50% currently, in line with the growth in retail demand for on-chain stock trading.This category is dominated by TradeXYZ, which operates XYZ100 (tracking the Nasdaq 100 index) and individual stock contracts for companies like Nvidia and Tesla, all settled in stablecoins rather than the underlying stocks. Compared to traditional options, perpetual contracts avoid time value decay, requiring only the payment of funding rates with no expiration date, making it more intuitive for retail traders accustomed to simple long and short operations.24/7 trading is another core selling point, allowing traders to react instantly to news or earnings reports without waiting for the market to open. However, the underlying stocks are still only traded during market hours, and outside of trading hours, HIP-3 prices rely entirely on oracles and funding rate mechanisms for anchoring, which has not been fully validated compared to native 24/7 assets like cryptocurrencies.

On-chain data shows that as of now, the HIP-3 market has generated a total revenue of 44 million USD. Among them, 22 million USD has been allocated to HIP-3 developers, and the remaining 22 million USD is used for repurchasing HYPE tokens. HIP-3 is the market creation and incentive mechanism within the Hyperliquid ecosystem, allowing developers to create and operate trading markets and earn protocol revenue sharing based on market performance. The disclosed data indicates that HIP-3 has become an important source of revenue for the Hyperliquid ecosystem while continuously providing financial support for the repurchase of HYPE tokens.

Felix protocol co-founder Charlie disclosed on the X platform that Felix's HIP-3 DEX and all spot markets will begin closing on June 19 and will be completed by June 20. All traders must close their active positions before this date.The Felix team reviewed and pointed out that competitor TradeXYZ successfully established a growth flywheel and dominated the market due to its earlier launch, pricing in USDC (instead of Felix's USDH), rapid market expansion, and the brand effect of airdrops. Although Felix was the first to launch in markets like OIL, GOLD, and SILVER and recorded approximately $3 billion in trading volume, it was ultimately surpassed by TradeXYZ.Felix stated that closing the DEX will not affect the lending and spot stock business, and the team will continue to focus on upgrading and iterating on the aforementioned core products.

The open interest (OI) of the HIP-3 market on Hyperliquid reached a peak of approximately $2.38 billion and currently remains at a high of around $2.1 billion, reflecting a growth of about 580% year-to-date. This growth is primarily driven by "non-crypto assets."Among the top ten markets by trading volume on the platform, only three are crypto trading pairs, while the rest consist of tokenized stocks and commodities, including the Nasdaq index, S&P 500, crude oil, gold, and silver. Analysis indicates that the core driving force comes from the demand for "24/7 trading of traditional assets." Unlike traditional markets that are limited by trading hours, HIP-3 enables investors to trade stock and commodity exposure around the clock through on-chain settlement and a non-intermediary structure. Additionally, TradeXYZ accounts for over 90% of the open interest in HIP-3, becoming the main source of liquidity in this sector.

Hyperliquid founder Jeff announced in the Discord channel that the priority fee mechanism has now been launched on the mainnet in Alpha mode, including Gossip priority fees (used for prioritizing data reads) and Order priority fees (used for prioritizing order writes), for more details please refer to the official documentation.It is important to note that based on user feedback, the cap for order priority fees has been reduced from 20 bps to 8 bps. Currently, order priority fees are only applicable to IOC orders on HIP-3 assets.

According to MLM monitoring, two days ago, Paragon (PARA) staked 500,000 HYPE (approximately 18.5 million USD) and launched the HIP-3 decentralized trading platform Para on the mainnet 8 hours ago, and has obtained trading codes TOTAL2, OTHERS, and BTCD.

Data shows that the total open interest of Hyperliquid's HIP-3 market has reached $1.43 billion, setting a new historical high. Since the launch of the first HIP-3 markets six months ago, this metric has achieved over 100 times growth.Currently, the trading platform trade.xyz, developed by Hyperliquid's tokenization business unit Hyperunit, dominates the market, contributing about 90% of the open interest. The platform's daily trading volume is approximately $22 billion, also accounting for about 90% of the overall trading activity in HIP-3. Notably, among the top 30 markets by trading volume on trade.xyz, only 7 are cryptocurrency trading pairs, while the majority are tokenized traditional assets, including the S&P 500, Nasdaq index, individual stock futures, and commodity contracts such as gold, silver, and crude oil.Analysis suggests that one of the key reasons for the growth of the HIP-3 market is its support for 24/7 trading, allowing traditional assets to break through the time constraints of traditional market trading hours.

Decentralized derivatives exchange Hyperliquid has disclosed that among its top 20 markets by trading volume, 12 are HIP-3 assets, covering real-world assets such as commodities and stock indices, marking the platform's ecosystem is accelerating its extension into the macro-financial domain.HIP-3 (Hyperliquid Improvement Proposal No. 3) allows developers to deploy perpetual futures markets for various assets such as commodities and stock indices through external price feeds. Contracts related to crude oil, silver, and major stock indices have already become some of the most actively traded products on the platform.

According to monitoring by Hyperinsight, the daily trading volume of all HIP-3 markets on Hyperliquid reached $2.2 billion, accounting for 30.1% of the platform's total trading volume of $7.34 billion. This indicates that the demand and activity for on-chain trading of traditional assets such as U.S. stocks, gold, and crude oil continue to rise, with SILVER (silver mapping contract) currently leading in trading volume for traditional assets.Recently, the contract with the largest increase in trading volume on Hyperliquid is xyz:CL (WTI crude oil mapping contract). After surpassing $100 million in daily trading volume, this trading pair set a new record of $242 million in trading volume in the past 24 hours, representing a 140% increase, and is now ranked sixth on the platform. During the same period, the open interest reached $66.06 million. Note: The core of HIP-3 is the RWA (real-world asset) mapping contract.

According to official news, Hyperliquid announced that the cross-margin feature for the HIP-3 permissionless perpetual contract market has been enabled on the testnet, but it is not yet available on the mainnet. However, this feature qualifies for the mainnet-level bug bounty program.The deployer of HIP-3 must first enable cross-margin for a specific asset before users can trade that asset using cross-margin. Under a unified account, all cross-margin perpetual contracts using the same collateral asset can share margin, even across multiple DEXs. However, assets from different DEXs will be protected up to their maintenance margin level to avoid automatic liquidation due to significant price fluctuations on other DEXs.This new "protective cross-margin" system ensures the solvency of the system while not affecting user experience. Cross-margin is not designed for DEX abstract interfaces, and related interfaces should not allow cross-margin trading through DEX abstraction. Users should use a unified account or combined margin to achieve the expected behavior of cross-margin for HIP-3 assets.