SPX6900 (SPX) spot deposits, withdrawals, and trading are now live on Hyperliquid through Unit Protocol. Deposit SPX on http://app.hyperliquid.xyz or http://app.hyperunit.xyz Trade spot SPX at https://app.hyperliquid.xyz/trade/SPX/USDC

Open interest continues to reach new all-time highs, surpassing $14.7B.

The CoreWriter system contract was activated on mainnet two weeks ago. CoreWriter and read precompiles allow trustless two-way communication between HyperCore and the HyperEVM, enabling builders to create an entirely new class of HyperEVM applications that interact with the liquidity and performance of HyperCore. For example, LSTs on other chains are usually controlled by an offchain multi-sig because staking occurs outside of the VM. The next generation of Hyperliquid LSTs can be built using read precompiles and CoreWriter for an entirely onchain tokenized staking experience. Furthermore, these onchain LSTs can participate in staking-related functionality through actions initiated from the HyperEVM, such as onchain LST-holder governance to deploy HIP-3 assets. As another example, borrow lend protocols can use read precompiles to incorporate prices from order books on HyperCore into more robust oracle prices. CoreWriter then allows these protocols to trustlessly liquidate undercollateralized positions on HyperCore order books. The seamless composability of HyperCore and the HyperEVM will be essential to enabling builders and bringing finance onchain.

Open interest has reached new all-time highs seven days in a row. Today's OI record was $13.8B. Fees also continue to grow, with a new ATH in 24h fees of $6M.

Weekly update Product & Tech + Two features on testnet are eligible for mainnet level bug bounties: 1) Spot trading with multiple quote assets (USDT and USDZZ on testnet) and 2) the sendAsset action, which generalizes several other actions into a single format that supports perp DEXs and spot DEX, sub-accounts, and normal users. See https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/api/exchange-endpoint for more Trading + PUMP hyperps were listed and converted to vanilla perps + PUMP spot trading, deposits, and withdrawals are now live, thanks to Unit + OI reached a new ATH of $12.1B New Teams on HyperEVM (in no particular order) + Kinetiq liquid staking: https://x.com/kinetiq_xyz/status/1945166326562947201 + OpenOcean swaps and DCA strategies: https://x.com/OpenOceanGlobal/status/1943297922394919235 + KyberSwap swaps: https://x.com/KyberNetwork/status/1945120434627682553 + Fordefi MPC wallet: https://x.com/FordefiHQ/status/1943052610896040176 New Teams on HyperCore (in no particular order) + Rabby wallet displaying HyperCore balances: https://x.com/Rabby_io/status/1944729735986323924 + Transak fiat on-ramp: https://x.com/Transak/status/1943641499570192596 + Spot trading for Pudgy Penguins' PENGU: https://x.com/pudgypenguins/status/1943365644369400226 + Bullpen enabling spot trading: https://x.com/BullpenFi/status/1942974825518989444 Community Highlights + Various members of the ecosystem are co-organizing a 4-week online hackathon. Registration opens on July 28: https://x.com/hl_hackathon/status/1944803023152452055 + Hypurr visited CNBC: https://x.com/dschamis/status/1944768550876381552 + Multiple HYPE treasury strategy companies have been announced recently, including Hyperliquid Strategies (holding ~$888M), led by Bob Diamond and David Schamis, and Hyperion DeFi (holding ~$68M)

Last week, Hyperliquid was the first major venue to offer PUMP prelaunch trading. It became the main platform for price discovery leading up to PUMP’s highly anticipated TGE, with over $400M in open interest and $600M in 24h volume as a prelaunch perp. Following TGE, Hyperliquid was also the first major venue to offer spot trading of PUMP through Unit. It remains one of the most liquid venues to trade PUMP spot. Hyperliquid continues to support the movement of capital formation and price discovery onchain. This trend is reflected in four consecutive days of open interest all-time highs. Today’s OI reached $12.1B.

Based on extensive user and builder feedback, the staking referral program is being re-evaluated to ensure fairness for all builders and a healthy builder ecosystem. In its current formulation, there is a risk that some builders sharing back fees to users will create pressure for other builders to do the same to remain competitive. This would be a dangerous precedent that sets an effective requirement of staking in order to compete as an application. Permissionless systems must be designed thoughtfully as there is no central authority to prevent extractive behavior. Thank you to all users that have raised these concerns. At this time, there is no definitive implementation ready for mainnet. Additional feedback is appreciated around designing a robust solution.

PUMP spot deposits, withdrawals, and trading are now live on Hyperliquid through Unit Protocol. Deposit PUMP on http://app.hyperliquid.xyz or http://app.hyperunit.xyz Trade spot PUMP at https://app.hyperliquid.xyz/trade/PUMP/USDC

The hyperp has converted to a regular perp. You can now long or short with up to 5x leverage. Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks for. Exercise control. NFA. https://app.hyperliquid.xyz/trade/PUMP

Hyperliquid hit a new OI ATH two days in a row. This time of >$11.3B.

Hyperliquid reached a new all-time high of >$10.6B in open interest.

By community request, Hyperliquid has listed -USD hyperps. You can now long or short the unlaunched token with up to 3x leverage. As a reminder, hyperps do not rely on any external data for the oracle price. Hyperps trade like perpetual contracts that users are familiar with, but do not require an external spot or index oracle price. Instead, the funding rate is determined relative to a moving average of the hyperp mark price. Trading is on low leverage and isolated margin only. Beware of low liquidity, high volatility, potentially extreme funding, and increased liquidation risk. Note: -USD will convert to a vanilla perp upon CEX spot listing. See Docs for more. -USD is a hyperp contract that poses higher than normal risk. Do not trade contracts you are unfamiliar with and do not understand the risks for. Read the Docs to learn more about the hyperp mechanism. NFA. https://app.hyperliquid.xyz/trade/PUMP

Biweekly update Product & Tech + The CoreWriter contract is live on mainnet. See the Docs for more: https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/hyperevm/interacting-with-hypercore#corewriter-contract + Spot trading with multiple quote assets is live on testnet with USDT and USDZZ (a testnet-only test token). Feedback is greatly appreciated, as always. + In approximately one month, the active validator set will increase from 21 to 24 validators. Note that the validator set will remain permissionless, as it currently is. Trading + SYRUP perps were listed New Teams on HyperEVM (in no particular order) + Etherscan's HyperEVM explorer: https://hyperevmscan.io/ + Gliquid v4 AMM: https://www.gliquid.xyz/pools + Harmonix HYPE yield vault: https://x.com/harmonixfi/status/1938540673009164696 + IVX 0dte options protocol: https://x.com/ivx_fi/status/1940706394325315778 + Proof of Play RNG solution for builders: https://x.com/ProofOfPlay/status/1938642122850398425 New Teams on HyperCore (in no particular order) + Phantom wallet perps trading through HyperCore: https://x.com/phantom/status/1942628993636917311 + Mass mobile wallet and Wallet V trading through HyperCore: https://x.com/massdotmoney/status/1940421198116200652, https://x.com/WalletV_io/status/1940795932456751407 + Lootbase mobile trading app through HyperCore on Apple App Store and Google Play Store: https://x.com/LootbaseX/status/1937873479350514084 + Maple Finance accepting HYPE as collateral: https://x.com/maplefinance/status/1938230304558485781 + Gigabrain open source MCP server to trade using Claude: https://x.com/GigabrainGG/status/1941113742818980268 Community Highlights + Community organized events took place at ETH CC Cannes and Dubai: https://x.com/NarwhalTan/status/1941145190770888984, https://x.com/Hyperliquidae/status/1942496159982858320 + Auros shared a guide to permissionless spot deployments on HyperCore: https://x.com/Auros_global/status/1940289302170345633

Phantom added perps trading to their wallet by using Hyperliquid as their liquidity layer. They are able to monetize permissionlessly through builder codes. https://x.com/phantom/status/1942628993636917311

Huge congrats to the Phantom team on their perps launch! We're honored that they chose Hyperliquid as their infrastructure, tapping into the best onchain liquidity with permissionless monetization via builder codes. By building on Hyperliquid, the Phantom team can focus on their world-class user experience, trusting that the liquidity infrastructure of Hyperliquid will give their users world-class execution. Innovative user interfaces are a huge milestone in bringing finance onchain. I'm excited to see Phantom and Hyperliquid scale and grow together!

Etherscan released a HyperEVM explorer: https://hyperevmscan.io/ https://x.com/etherscan/status/1942186694977192179

HyperBFT is undergoing consistent improvement over time to further decentralise the network without sacrificing performance. In approximately one month, the active validator set will increase from 21 to 24 validators. Note that the validator set will remain permissionless, as it currently is. Technical details for validators: Validators are encouraged to carefully understand the technology and familiarise themselves with testnet before proceeding with mainnet. Note that the self-delegation of 10k HYPE is locked by the protocol for one year. This lockup applies even if a validator is not part of the active set, and should be carefully considered before committing the stake.

The CoreWriter system contract will be enabled on the next mainnet network upgrade. As a reminder, any testnet bugs related to the CoreWriter are eligible for mainnet level bug bounties: https://hyperliquid.gitbook.io/hyperliquid-docs/bug-bounty-program

Spot trading with multiple quote assets is live on testnet. The currently available quote assets are USDT and USDZZ (a testnet-only test token). Any feedback is greatly appreciated. The current focus is on the technology. A later announcement will be made around the requirements for becoming a quote asset.

By community request, you can now long or short with up to 3x leverage. Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks for. Exercise control. NFA. https://app.hyperliquid.xyz/trade/SYRUP

Biweekly update Product & Tech + The CoreWriter contract is in final stages of testing on testnet and receives mainnet level bug bounties according to https://hyperliquid.gitbook.io/hyperliquid-docs/bug-bounty-program + In response to builder feedback, the node binary supports serving a local HTTP API server. Combined with the streaming data from nodes, builders can index and analyze the blockchain state without relying on external API servers or being subject to rate limits. See: https://github.com/hyperliquid-dex/node. Any feedback is appreciated. + On the next network upgrade, L1 blocks will sort post-only orders before cancels and fill notifications and minimum order value error messages will remove the dollar sign and instead specify the quote asset for spot trading. For more details, see the API announcements channel New Teams on HyperEVM (in no particular order) + Mintify NFT marketplace and launchpad: https://x.com/Mintify/status/1934666580744364084 + Optfun 1 minute BTC options: https://x.com/opt_fun/status/1935843657355252219 + Zerion wallet: https://x.com/zerion/status/1937525649545265593 + Perpflow call trace visualizer: https://x.com/perpflow/status/1937146676671598929 + Enso API shortcuts to trigger swaps, deposits, etc.: https://x.com/EnsoBuild/status/1937249279439257899 + Dune Sim API data: https://x.com/DuneSim/status/1934596897483931917 + ZKP2P fiat on-ramp: https://x.com/zkp2p/status/1932392366498816272 New Teams on HyperCore (in no particular order) + BasedApp mobile app to trade on Hyperliquid and spend with a Visa credit card: https://x.com/basedapphq/status/1937410638755901703 + Neutral Trade funding arb vaults (deposit USDC on Solana): https://x.com/TradeNeutral/status/1932791865088356864 + Blockworks Research dashboard: https://blockworks.co/analytics/hyperliquid + Copypaste community member's Rust SDK: https://x.com/controlcthenv/status/1937253831416635483 Community Highlights + Community organized events took place at Permissionless, in London, for builders in Seoul, and with pickleball in Kuala Lumpur the past 2 weeks. Find out about upcoming community events through https://x.com/hypurr_co + Jeff did a podcast with The Chopping Block: https://youtu.be/xQK9TFbGyN0?si=Kxp40smhlc0PNTwr&t=44

Thanks for having me on guys! Enjoyed the discussion

Biweekly update Product & Tech + The testnet HyperEVM L1Write system contract has been replaced with a new CoreWriter system contract at the same address. The new contract allows generalization to new HyperCore actions while keeping the system contract on HyperEVM static. It also includes a small gas charge to send HyperCore actions. See https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/hyperevm/interacting-with-hypercore for more details. Feedback is greatly appreciated. + See the API announcements channel for updates on HyperEVM streaming and L1 state snapshot file format + A Support section has been added to the Docs to help users with FAQ: https://hyperliquid.gitbook.io/hyperliquid-docs/support Trading + Margin tiers rollout was completed. For more information, see the Docs: https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margin-tiers#mainnet-margin-tiers + SOPH and RESOLV perps were listed New Teams Live on HyperEVM (in no particular order) + Hyperdrive money market for borrow lend: https://x.com/hyperdrivedefi/status/192754542266433136 + LiquidLaunch LIQD staking: https://x.com/LiquidLaunchHL/status/1929572908977766604 + Beefy Finance yield aggregator: https://x.com/beefyfinance/status/1930959239255580958 + Hybra DEX: https://x.com/HybraFinance/status/1929808775877480526 + Farcaster's wallet: https://x.com/farcaster_xyz/status/1930377381895909714 + Gem Wallet: https://x.com/GemWalletApp/status/192510249969164723 + Biconomy account abstraction tooling: https://x.com/biconomy/status/1932110021082374558 + Definitive trading terminal: https://x.com/definitivefi/status/1929546029315354906 + Jumper, Symbiosis, and Interport bridges New Teams on HyperCore (in no particular order) + 0xPPL portfolio tracker integrated Hyperliquid: https://x.com/0xppl_/status/1929511816746717660 + Polaris added cross chain support to swap for HyperCore assets: https://x.com/Polaris_App/status/1930597241305358503 Community Highlights + HypurrCo Philippines hosted their first event today: https://x.com/HyperliquidPH/status/1932289770757276020 + HypurrCo and NLH are hosting a brunch and pickleball session in KL, Malaysia on June 19: https://x.com/hypurr_co/status/1925087664119939093 + HypurrCo is organizing an event at EthCC on July 4: https://x.com/hypurr_co/status/1929874132432572780 + Xulian shared recommendations on self-custody and keeping your assets safe: https://x.com/xulian_hl/status/1931291343265144896 + Jeff wrote about how transparency improves execution for whales in 2 posts: https://x.com/chameleon_jeff/status/1929753039969440212, https://x.com/chameleon_jeff/status/1928883871644528890

By community request, you can now long or short with up to 3x leverage. Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks for. Exercise control. NFA. https://app.hyperliquid.xyz/trade/RESOLV

Thank you to everyone who took the time to thoughtfully respond to my post on transparent markets. I understand that the thesis is controversial and that Hyperliquid is at a new frontier as the first fully transparent order book venue of its scale. I could well be mistaken, and welcome the continuous dialogue on market structure innovation. However, many criticisms I saw stemmed from misunderstandings, with some points actually supporting transparent systems like Hyperliquid. Market structure is notoriously counterintuitive, and novel approaches often challenge established paradigms, leading to understandable skepticism. For example, Hyperliquid pioneered protocol-level cancel prioritization, which has since been implemented by new DEXs and even inspired novel transaction ordering ideas on other blockchains. But at the time, it was considered controversial because it went against traditional market design. I hope that transparent trading will follow a similar path to adoption. I may have been too ambitious trying to cover a complex argument in a single post. Given the specific patterns in criticisms, I'd like to take this opportunity to zoom in on nuances that were missed in the high level summary. What follows is an argument for the final state of efficient markets, with the understanding that Hyperliquid is far from fully efficient today. However, inefficiency is opportunity for those hungry to act. Hopefully this post can also be a call to action for traders, market makers, and builders to translate transparent markets into the highest quality execution venue for all. -- Before delving into specific concerns, let’s crystallize some counterintuitive principles that can form a helpful mental model for market structure: 1. Counterparty principle: Benefits of counterparty curation are misattributed to privacy. Users ultimately care about execution. As studies have shown though, privacy sells. Alternative trading venues often market privacy as the causal feature for improving execution. In reality, the primary source of benefit for users is the screening of counterparties allowed to participate on the venue. Hyperliquid’s market design provides these same benefits more directly and effectively than patchwork solutions. Hyperliquid’s solution also democratizes access, improving execution for all traders large and small. Note that transparency does not mean doxxing. Of course, the exact identity of some traders will fundamentally change the value of the asset. But those traders need not dox themselves, e.g. Warren Buffet can buy BTC and benefit from transparent markets, without tying his identity to his address. 2. Competition principle: Maximizing competition is key to improving execution. Many traders who want to execute in size have some form of alpha. However, the group of informed medium/long term traders in aggregate is difficult to distinguish even over yearly timeframes, as their realized sharpe is too low for statistical significance. It is challenging to distinguish between a trader with solid medium term alpha and a degenerate gambler who got lucky. Therefore, while the desire to minimize market impact and alpha leakage is natural, it’s usually outweighed by the improved liquidity from transparent markets. Traders therefore see improved execution despite revealing their strategy, as market makers are bound to provide liquidity to the entire range of flows in the market. Competition is the bedrock of capital markets and economics. As an example, the Hyperliquid order books support an onchain TWAP. Such a broadcasted intent to trade is in fact a reasonable proxy for optimal execution. Market makers will immediately fill some size so that the earlier TWAP orders receive worse execution, but will also compete to fill the remaining flow. The competition between market makers ensures near optimal overall execution over the course of the TWAP. Any inefficiency in execution is an opportunity for another market maker to undercut the others. 3. Repeated games principle: Execution improves when one-time games become repeated games. Market makers evaluate each decision from a game-theoretical framework, as they are in the business of making positive expectancy bets. On Hyperliquid, every account placing more than one order is playing a repeated game. Repeated games have dramatically different optimal strategies from the one-time games of private venues, and the resulting equilibrium is better execution for everyone other than toxic extractors. Competition is essential for the optimal market marker strategy to benefit the end user, which is amplified by the next principle. 4. Full transparency principle: Benefits from transparency are non-linear and only manifest when transparency is at the system level. When optimizing for execution, “the system knows” > “no one knows” > “some people know.” The worst of the three states is where some insiders have privileged information. Those insiders can act exploitatively to extract profit from end users. Because L3 books are not transparent in tradfi, the “darker” venues often implement systems to unilaterally apply counterparty-specific filtering to trades. Hyperliquid achieves the same effect on a lit venue and therefore maintains the benefits of efficient order book execution. -- Common criticisms to the initial post, and my responses [I’ve bracketed references to the different principles]: 1. Many large desks in tradfi trade OTC, which is evidence that public venues cannot support large size. Response: This point actually supports Hyperliquid. In tradfi's L3 books, there is no reliable way to broadcast your identity trustlessly to all counterparties. Using an OTC desk is a compromise, telling a small set of professional counterparties that you are non-toxic. Like trading on an L4 order book, trading OTC is a repeated game where the OTC desk is quick to ban any counterparties that adversely select a small fraction of quotes, or engage in otherwise toxic behavior [repeated games principle]. The OTC desks offer quotes where their own algorithmic execution/hedging costs are below the markup, which is only possible when their fills’ immediate markouts are positive. A Hyperliquid whale who places an onchain TWAP order is effectively routing their flow to every "OTC desk" plugged into Hyperliquid. When OTC counterparties expand from a select few to all market makers, the competition improves execution for the user compared to the bespoke OTC quote [competition principle]. In summary, execution on Hyperliquid incorporates the efficiency of lit venues with the counterparty signaling of OTC. This high quality execution is available to all users equally. 2. A large percentage of tradfi volume happens on dark pools, retail internalizer systems, etc. Response: This argument also supports Hyperliquid. The basic idea behind dark pools is that two large whales with a "coincidence of wants" can match immediately and bypass the spread that lit markets charge. Until such a match exists, orders are attempted to be kept private to reduce market impact. While a neat idea at first glance, the privacy of dark pools is unlikely to meaningfully protect intentions or improve execution. For example, sophisticated actors participate in dark pools themselves. At a minimum, their fills are a strong signal on the supposedly private flow. This shares many parallels with the insider information discussed in the following section. Information that will be deduced anyway is better made public [full transparency principle]. As another argument against the effectiveness of privacy properties, dark pools rely heavily on participants having identities known to the pool operator [repeated games principle]. This is necessary because the private information is easily leaked. There are strict requirements for participation, e.g. high fill rate, minimum order size, and negative short term markouts. Offenders with toxic behavior are banned or deprioritized [counterparty principle]. Like OTC desks discussed above, transparent L4 books on Hyperliquid incorporate and improve upon many of these positive properties of dark pools within an open, systematic framework. 3. Public data allows hunting of liquidations/stops. Response: Most would agree that unlike size information, preserving margin privacy is beneficial for the end user. Perhaps a ZK privacy implementation can accomplish this in the future. However, until then, users are less likely to be successfully hunted if everyone knows liquidation and stop prices than when only the exchange operator knows [full transparency principle]. Two reasons: a. On CEXs, your position information is far from private. Based on empirical data of insider trading leading up to listings, one should assume that liquidations and stops are also vulnerable to misuse. This can be despite best efforts from management: it is extremely difficult to completely control large organizations from leaking information. When insiders hunt stops and liquidations, there is no public data for other market makers to understand the source of the temporary dislocation. This decreases the required capital to successfully push the price. b. In the game theoretical equilibrium of transparent data, stop and liquidation hunting are likely unprofitable endeavors on average. Whales are protected by the entire system of market participants acting rationally. People trying to hunt liquidations and stops will be counteracted by people trying to trick them into the hunting. For example, someone who wants to open a large long position can execute half of their position on high leverage, bait the hunters to short, then increase collateral and enter the remaining desired position at a more favorable price. As long as some profit seeking “anti-hunters” exist, all whales benefit from the cover. While point (b) will take time to play out, markets are ultimately efficient. Even before this equilibrium is reached, the full transparency principle in point (a) suggests Hyperliquid's model offers more robust protection for whales. Liquidity is generally deeper when lit venues are more transparent [competition principle], which further increases the cost of liquidation and stop hunting. 4. Some users have alpha and will not benefit from transparency. Response: The users that are disadvantaged by Hyperliquid’s system are a very small set of “toxic” participants. These are the same adversarial traders that dark pools, OTC desks, and other solutions try to avoid. A small number of professional HFT firms have alpha on this timescale, and it’s a failing of traditional market structure that these toxic takers have the ability to tax all other users of the system. As an aside, short term alpha and toxicity is a continuous spectrum, so I’m oversimplifying for sake of argument. For example, there are intraday quantitative strategies that can realize significant sharpe ratios, whose flow could be a reliable momentum signal for market makers. The technical reason this is not a problem is that cost to rotate accounts is proportional to fee sensitivity of the strategy, which is inversely proportional to the time it takes for others to detect the strategy with statistical significance. In other words, the more execution matters to a quant strategy, the less the burden of obfuscation. Regardless, the vast majority of users on Hyperliquid do not fall remotely close to this category of quantitative, toxic alpha. Note that “toxic” does not mean “informed,” but rather traders who profit non-constructively from slight infrastructural or other structural advantages such as latency. Hyperliquid's cancel prioritization and L4 order book essentially boost the short term liquidity available to non-toxic small and large orders, respectively. As a conservative lower bound, as long as market maker counterparties on Hyperliquid can hedge in time on other venues, the trader benefits from Hyperliquid’s system. -- I know I’ve missed other points, but will stop here to keep this post digestible. Thanks again to everyone for their thoughtful feedback, especially those who took time to review an earlier version of this post. I look forward to continuing this discussion!

Why transparent trading improves execution for whales Throughout Hyperliquid’s growth, skeptics questioned the platform's ability to scale liquidity. These concerns have been resolved now that Hyperliquid is one of the most liquid venues globally. With Hyperliquid’s adoption by some of the largest traders in crypto, discussion has shifted to concerns around transparent trading. Many believe that whales on Hyperliquid are: 1) frontrun as they enter their position 2) hunted because their liquidation and stop prices are public These concerns are natural, but the opposite is actually true: for most whales, transparent trading improves execution compared to private venues. The high level argument is that markets are efficient machines that convert information into fair prices and liquidity. By trading publicly on Hyperliquid, whales give market makers more opportunity to provide liquidity to their flow, resulting in better execution. Billion dollar positions can have better execution on Hyperliquid than on centralized exchanges. This post covers a complex line of reasoning, so it may be more compelling to start with a real-world example from tradfi to demonstrate this universal principle. After all, actions speak louder than words. Example Consider the largest tradfi ETFs in the world that need to rebalance daily. Examples include leveraged ETFs that increase positions when prices move favorably and decrease positions in the other direction. These funds manage hundreds of billions of dollars in AUM. Many of these funds choose to execute on the closing auction of the exchanges. In many ways this is a more extreme version of whales trading publicly on Hyperliquid: 1. These funds’ positions are known almost exactly by the public. This is true on Hyperliquid as well. 2. These funds follow a precise strategy that is public. This is not true on Hyperliquid. Whales can trade however they want. 3. These funds trade predictably every day, often in massive size. This is not true on Hyperliquid. Whales can trade whenever they want. 4. The closing auction gives ample opportunity for other participants to react to the ETFs’ flows. This is not true on Hyperliquid, where trading is continuous and immediate. Despite these points, these ETF managers opt into a Hyperliquid-like transparency. These funds have full flexibility to make their flows private, but proactively choose to broadcast their intentions and trades. Why? History of transparency in electronic markets A complementary example is the history of electronic markets. As summarized above, markets are efficient machines that convert information into fair prices and liquidity. In particular, electronic trading was a step-function innovation for financial markets in the early 2000s. Prior trading occurred largely in trading pits, where execution quality was often inconsistent and spreads wider. With the advent of programmatic matching engines transparently enforcing price-time priority, spreads compressed and liquidity improved for end users. Public order books allowed market forces to incorporate supply and demand information into fairer prices and deeper liquidity. The spectrum of information Order books are classified by their information granularity. Note that L0 and L4 are not standard terminology, but are included here as natural extensions of the spectrum. L0: No book information (e.g. dark pools) L1: Best bid and offer L2: Levels of the book with price, total size of level, and optionally number of orders in the level L3: Individual anonymized orders with time, price and size. Some fields including sender are private L4 (Hyperliquid): Individual orders with complete parity between private and public information Each new level of order book granularity offers dramatically improved information for participants to incorporate into their models. Tradfi venues stop at L3, but Hyperliquid advances to L4. Part of this is necessity, as blockchains are transparent and verifiable by nature. However, I argue that this is a feature, not a bug. Zooming out, the tradeoff between privacy and market efficiency spans the full spectrum from L0 to L4 books. On this scale, L3 books can be viewed as an arbitrary compromise, not necessarily optimal. The main argument against L4 books is that some strategy operators prefer privacy. Perhaps there is some alpha in the strategy that is revealed by the order placement. However, it’s easy to underestimate the sheer talent and effort going into the industry of quantitative finance, which backs out much of these flows despite anonymized data. It’s difficult to enter a substantial position over time without leaking that information to sophisticated participants. As an aside, I believe financial privacy should be an individual right. I look forward to blockchains implementing privacy primitives in a thoughtful way in the coming years. However, it's important not to conflate privacy and execution. Rather than hand-in-hand concepts, they are independently important concepts that can be at odds. How market makers react to information One might argue that some privacy is still strictly beneficial. But privacy is far from free due to its tradeoff with execution: toxic flow can commingle with non-toxic taker flow, worsening execution for all participants. Toxic flow can be defined as trades where one side immediately regrets making the trade, where the timescale of "immediate" defines the timescale of the toxicity. One common example is sophisticated takers who have the fastest line of communication between two venues running toxic arbitrage taker strategies. Market makers lose money providing liquidity to these actors. The main job of a market maker is to provide liquidity to non-toxic flow while avoiding toxic flow as much as possible. On transparent venues, market makers can categorize participants by toxicity and selectively size up to provide as a non-toxic participant executes. As a result, a whale can quickly scale into a large position faster than on anonymized venues. Summary Finally returning to the example of ETF rebalancing, I imagine the conclusion of rigorous experimentation confirmed the points above. Addressing the specific subpoints in the introduction: 1) A transparent venue does not lead to more frontrunning than private venues. Rather, traders with consistently negative short term markouts benefit by broadcasting their autocorrelated flow directly to the market. Transparent venues offer a provable way for every user to benefit from this feature. 2) Liquidations and stops are not “hunted” on transparent venues more than on private venues. Attempts to push the price on a transparent venue are met with counterparties more confident to take the mean reversion trade. If a trader wants to trade massive size, one of the best things to do is tell the world beforehand. Though counterintuitive, the more information that is out there, the better the execution. On Hyperliquid, these transparent labels exist at the protocol level for every order. This enables a unique opportunity to scale liquidity and execution for traders of all sizes.

As part of the gradual rollout of margin tiers referenced in ⁠previous announcements, margin tiers will be activated for BTC, ETH, SOL, XRP, HYPE, and FARTCOIN on June 2 around 03:30 UTC. HYPE and FARTCOIN max leverage will be increasing to 10x. If you have large positions on these assets, it's recommended to try the UI on testnet beforehand to familiarize yourself with the flow when position limits are hit at your current leverage. Note that margin tiers on testnet are much lower for ease of testing. If you need mock USDC and can verify your address, you can open a ticket in the Discord server. For more information, see the Docs: https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margin-tiers#mainnet-margin-tiers

By community request, you can now long or short with up to 5x leverage. Listing is not an endorsement of the project. Past performance does not guarantee future results. Do not trade assets you are unfamiliar with and do not understand the risks for. Exercise control. NFA. https://app.hyperliquid.xyz/trade/SOPH

Biweekly update Product + SOL and FARTCOIN spot trading, deposits, and withdrawals are now live, thanks to Unit + The spot deployment auction changed from fees in USDC to HYPE + Added order rejection reasons to Order History Trading + Margin tiers were activated for various assets, ensuring more orderly liquidations of large positions by beginning liquidations with more margin available. For more information see previous announcements and the Docs: https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margin-tiers + Margin transfer requirement was decreased from 20% to 10% to allow users more flexibility in withdrawing unrealized pnl while still providing the necessary safety buffer for platform stability. + OI reached a new ATH of $10.1B + 24h fees reached a new ATH of $5.6M + USDC TVL reached a new ATH of $3.5B + LAUNCHCOIN and NXPC perps were listed Tech + On the next network upgrade, the HyperEVM small block duration will be decreased from 2 seconds to 1 second, which will increase HyperEVM throughput. Note that optimizing throughput to scale and meet user demand is consistently a top technical priority and further optimizations will be released incrementally. + For more updates, see the ⁠API Announcements channel New Teams Live on HyperEVM (in no particular order) + Rabby Wallet and DeBank added support for the HyperEVM. If you're running into issues with your current wallet, consider switching to Rabby Wallet + HypurrFi adopted the https://www.hyperscan.com/ Blockscout explorer from tomkysar + Felix vanilla markets powered by Morpho went live for HYPE, BTC, USDT0, and USDe: https://usefelix.xyz/vanilla-borrow + Hyperbeat Morpho vaults went live for HYPE, ETH, USDe, and USDT0: https://x.com/0xHyperBeat/status/1925920585684578670 + Hpump (from HypurrFun) went live: https://x.com/Hypurrfun/status/1926934934200991971 + Mantle ETH (mETH) went live on HyperSwap: https://x.com/mETHProtocol/status/1925220218135261598 + Hyperstable (USH) mint and borrow went live: https://x.com/HyperstableX/status/1922625421666865437 + PiP launched an NFT collection: https://drip.trade/collections/pip + Mura.hl made a TG channel to check HyperEVM gas: https://x.com/murda0x/status/1925918313663672561 New Teams Live on HyperCore + Liminal added delta-neutral yield strategies for BTC, ETH, SOL, and FARTCOIN: https://x.com/liminalmoney/status/1924923678782869587 + Jumper added support for bridging to HyperCore: https://jumper.exchange/ Community Highlights + Hyperliquid Labs submitted two comment letters to the US CFTC in response to its RFCs on perpetuals and 24/7 trading: https://hyperfnd.medium.com/defi-as-a-more-open-transparent-and-efficient-financial-system-c2c9e9fa2081 + Jeff did a podcast with Bell Curve: https://www.youtube.com/watch?v=xHGKv0Cx7ao + A Bloomberg Surveillance podcast mentioned Hyperliquid: https://x.com/HyperliquidX/status/1922910069869408264 + HypurrCo and NLH are hosting a brunch and pickleball session in KL, Malaysia on June 19: https://x.com/hypurr_co/status/1925087664119939093 + HypurrCo's YouTube channel made walkthrough tutorials on bridging to HyperCore and the HyperEVM: https://www.youtube.com/@HypurrCollective + Hyperdash has been a popular dashboard to track user positions during ATH activity: https://hyperdash.info/

On the next network upgrade, the HyperEVM small block duration will be decreased from 2 seconds to 1 second, which will increase HyperEVM throughput. Note that optimizing throughput to scale and meet user demand is consistently a top technical priority. Further optimizations will be released incrementally. This change is already live on testnet, and feedback is appreciated as always. More details about the dual-block system on HyperEVM can be found here: https://hyperliquid.gitbook.io/hyperliquid-docs/for-developers/hyperevm/dual-block-architecture