HIP-3
HIP-3 is one of the most important upgrades introduced to the Hyperliquid ecosystem. Officially known as “Builder-Deployed Perpetuals,” the proposal opened HyperCore to external market creators for the first time.
Before HIP-3, adding new perpetual futures markets usually required centralized approval processes or internal exchange listing decisions. Hyperliquid replaced that model with an on-chain deployment system powered by staking and economic incentives.
Under HIP-3, qualified builders can launch their own perpetual trading markets directly on HyperCore. These builder-deployed markets still inherit Hyperliquid’s order books, matching engine, margin systems, and execution infrastructure.
To deploy markets, builders must stake 500,000 HYPE tokens as a security bond. The staking requirement acts as both an anti-spam mechanism and a way to align deployers with ecosystem stability.
If deployers behave maliciously or improperly manage market infrastructure, validators can slash the staked HYPE. Slashed tokens are permanently burned rather than redistributed.
HIP-3 also introduced a builder revenue model. Deployers receive a share of trading fees generated from their markets, giving them direct economic incentives to attract liquidity and trading activity.
HIP-3 is also important because it expanded Hyperliquid’s role from a decentralized exchange into a broader financial infrastructure platform. Instead of listing only internal markets, HyperCore became a foundation where external teams could launch entire trading ecosystems.
The proposal fits directly into Hyperliquid’s long-term vision of hosting many financial products, including perpetuals, tokenized assets, commodities, and event markets, inside one unified execution layer.
Why It Matters
HIP-3 transformed Hyperliquid into an open market infrastructure layer rather than only a trading platform. It enabled permissionless perpetual market deployment while still maintaining shared liquidity and execution systems.
The proposal is important because it combines decentralized market creation with professional-grade trading infrastructure and economic security mechanisms.
How does HIP-3 work?
HIP-3 allows builders to deploy perpetual futures markets directly on HyperCore. These markets inherit Hyperliquid’s order books, execution engine, and trading systems instead of requiring builders to create infrastructure from scratch.
Builders must stake 500,000 HYPE tokens before deployment. This stake acts as collateral and can be slashed if deployers behave maliciously or improperly manage market infrastructure.
Once deployed, builders can manage oracle systems, liquidity strategies, leverage settings, and trading interfaces for their markets while still operating inside HyperCore’s shared ecosystem.
Why is HIP-3 important for decentralized trading?
HIP-3 removes many of the traditional barriers associated with launching derivative markets. Instead of relying on centralized listing committees, qualified builders can deploy markets permissionlessly through staking and protocol rules.
This dramatically expands the range of tradable assets and market categories available on Hyperliquid. Builders can launch tokenized stock perpetuals, commodities, indices, and other financial products.
The proposal also deepens ecosystem composability because all markets operate inside the same trading infrastructure and account system.
What risks exist with HIP-3 markets?
HIP-3 markets introduce builder responsibility into the ecosystem. Deployers manage oracle feeds, liquidity conditions, and risk parameters for their markets.
If builders poorly manage infrastructure or liquidity, traders may experience weak market depth or pricing problems. Oracle manipulation is another important risk discussed within the ecosystem.
Additionally, HIP-3 markets are not directly protected by Hyperliquid’s native liquidity systems. Market quality depends heavily on the deployer’s operational management.
Real-World Example
A trading company wants to launch perpetual futures tied to major US technology stocks. Using HIP-3, the company stakes 500,000 HYPE tokens and deploys markets directly on HyperCore.
The builder manages oracle feeds and liquidity while traders access the new perpetual markets using the same Hyperliquid trading infrastructure already used for crypto perpetuals.