CoinRebate
Back to Guides
Binance

Hyperliquid deep dives: Why does this "Binance on the chain" make even Binance unable to sit still? Lao Jiucai will guide you through it all

Hyperliquid is known as "Binance on the chain", and its trading volume once accounted for 13.85% of Binance contracts! Lao Liancai provides an in-depth analysis of how it subverts Perp DEX with its high-performance public chain and silky smooth experience, and tells you where newbies can start trading safely.

Hyperliquid deep dives: Why does this "Binance on the chain" make even Binance unable to sit still? Lao Jiucai will guide you through it all

#Hyperliquid deep dive: Why does this "Binance on the chain" make even Binance unable to sit still? Lao Jiucai will guide you through it all

Brothers, let’s talk about something ruthless today - Hyperliquid. This thing is no longer a "small-time" Perp DEX like GMX and DYDX. It has directly turned itself into a high-performance L1 public chain. The community calls it "Binance on the Chain", or even more arrogantly called "AWS** with **liquidity". Today, Laojiao will take you to take a look at it. Where is it? It can make even Binance feel "anxious".

What is Hyperliquid? More than just DEX, it’s a financial public chain!

To put it simply, Hyperliquid started as a perpetual contract DEX, but its ambitions are huge. It is a self-developed Layer-1 blockchain, at the same level as Ethereum and Solana. Vision? Build high-performance on-chain financial transaction infrastructure.

Now the platform not only has perpetual contracts, but also spot transactions, and recently launched its own stablecoin USDH. Just look at its governance proposals (HIP) to understand: from HIP-1 to HIP-3, the HIP-4 recently proposed by the community even wants to build an "event prediction market" similar to Polymarket, and the product boundaries are getting wider and wider.

Core technology: high-performance L1 for transactions

The Hyperliquid team started from "first principles" and built a chain specifically for trading in order to solve the problems of poor liquidity, poor experience, and many black box operations in the encryption market. The architecture is divided into two parts:

  • HyperCore: The core matching engine on the chain. Use the central limit order book (CLOB) model to put the entire process of pending orders, matching, margin and liquidation on the chain. This choice is so wise. The previous Perp DEX experience using AMM was really bad. CLOB is now the mainstream (like Aster and Lighter have also followed).
  • HyperEVM: A common smart contract layer that shares consensus with HyperCore and is compatible with Ethereum EVM to facilitate access by other applications. The consensus mechanism uses an improved version of HotStuff, called HyperBFT (proof of equity).

This design brings speeds close to those of centralized exchanges: median transaction latency is only 0.2 seconds, and peak throughput is as high as 200,000 transactions/second. Block confirmation is sub-second, truly achieving “on-chain CEX speed”. Security and performance all rely on its own chain and does not rely on re-pledge networks such as EigenLayer. As of September 2025, there are 24 active nodes on the chain.

User experience: not as smooth as DEX

Anyone who has used Hyperliquid will know that its trading interface and experience are almost the same as those of top CEXs such as Binance and OKX. The traditional order book plus K-line chart, advanced limit orders, take profit and stop loss are all available, and the professional tools are complete.

The best part is that the transaction settlement is almost real-time (sub-second level), the operation feedback is smooth, and there is no lag at all. The "da" sound when opening or closing a position sounds quite impressive.

Users can access it without permission through Web3 wallet, and the assets are non-custodial. At present, it is mainly bridged to USDC from Arbitrum. Then the platform will generate an Agent wallet for you (only the trading rights, the private key is saved locally). After that, you don’t need to sign repeatedly when opening and closing positions, and the experience is extremely smooth.

The team is also very responsive to the community. For example, in July 2025, an API failure caused an outage, and the team immediately paid users about 2 million US dollars out of their own pockets. This responsibility directly attracted countless fans.

Liquidity and Depth: The leading position is as stable as a dog

As the absolute leader of Perp DEX, Hyperliquid’s liquidity is bottomless. Data speaks:

  • In July 2025, the monthly perpetual contract trading volume was approximately 319 billion US dollars, accounting for 65% of the total chain-wide Perp DEX trading volume (487 billion) that month.
  • In mid-2025, its market share once stabilized at 75–80%.
  • In August 2025, its single-month trading volume accounted for 13.85% of Binance contracts, the highest in history.

The platform supports hundreds of trading pairs, including both mainstream coins and altcoins. The on-chain order book makes the depth of pending orders completely transparent. Coupled with professional market makers and HLP market making pools, the spreads of mainstream currencies are extremely low, and the slippage of large transactions is also small.

As of September 2025, its total lock-in value (TVL) is as high as approximately 2.7 billion US dollars, far exceeding other competing products. This size allows it to compete with Binance in terms of depth in most currencies.

In terms of handling fees, Maker 1.5bps and Taker 4.5bps, which are slightly lower than mainstream CEX. You can also enjoy a handling fee discount by staking HYPE tokens, up to 40% off (more than 5 million HYPE needs to be pledged). Is this gameplay similar to Binance's holding BNB to increase VIP?

Unique Vaults economic model

Hyperliquid's treasury system consists of three parts and is designed very delicately:

  1. Assistance Fund (AF): The protocol’s “treasury” and buying engine. It is mainly used to repurchase and destroy HYPE tokens, and also to compensate users in special events (such as the above-mentioned outage). About 93% of platform handling fees will be injected into AF for repurchase and destruction, forming a flywheel of "increased transaction volume → more handling fees → more tokens destroyed → increased token value → attracting more users".
  2. Hyper Liquidity Provider (HLP): Protocol-level market making and clearing reserve pool. Anyone can deposit USDC to participate in sharing the profits. The current annual rate is about 6.7%, there is no management fee, and it can be redeemed in 4 days. This makes market making open and transparent.
  3. User Treasury: similar to a copying system or secondary fund. It is composed of a strategic manager (Vault Leader) and a investor (Depositor). After profits are made, the manager will take a 10% commission, and the agreement will not take a commission.

Community and Team: The Triumph of Elite Small Teams

Hyperliquid's community is very active, especially in Europe and the United States. The core of the team is about 11 people** and is known for its elite small team and high-speed iteration.

The founder, Jeff Yan, has a strong background. He once worked at the traditional high-frequency trading giant Hudson River Trading and has a Harvard background. The most awesome thing is that the team claims to have been completely self-funded since the launch of the project and has rejected all VC investments to ensure independence and prioritize user interests. This “no VC, no private equity” approach has won deep trust from the community. Of course, there is also news that they have raised funds through related entities and have strong financial strength (treasury reserves exceed US$500 million). But no matter what, the team is low-key and pragmatic, relying on excellent products and technology to become the first in the industry in two years. This is a fact.

The "Tao" and "Technology" of Hyperliquid's success

Why is it successful? In addition to a good team and good technology, let’s look at it in stages:

  • Level of Technique:
  1. Airdrop incentive stage: Before issuing coins, rely on airdrop expectations to attract users to increase their volume.
  2. Compliance Bonus Stage: After the currency issuance, the trading volume did not fall but increased, taking over the flow of users from CEXs such as Binance due to regulatory pressure.
  3. Build Codes Phase: This is the big killer. It provides a set of infrastructure that allows developers to easily build their own front-end or trading interface based on Hyperliquid (similar to a white label solution). Phantom Wallet, Axiom, etc. are all connected, which brings exponential user growth potential and outsources user acquisition and innovation to the builder network.
  • Level of Tao: In the final analysis, Hyperliquid carries the banner of "Blockchain Spirit" - Openness, Transparency, Decentralization, and User Sovereignty. When many CEXs still have problems such as black-box operations and customer losses, a product that is truly transparent on the chain and has an experience that is not inferior to that of CEXs can naturally unite people's hearts. This is why even Binance has launched its own "Prince" Aster to deal with it.

Advice and safety reminders for newbies

After talking so much, Hyperliquid does represent a new direction for the development of Perp DEX. But for the newbies who have just entered the circle, Lao Liancai still has to say a few words:

  1. Recognize the essence: Hyperliquid is a decentralized exchange (DEX). You need to manage the wallet private key yourself. There is a certain learning cost for cross-chain assets. Its experience is close to CEX, but the underlying logic is different.
  2. Start with mainstream CEX: If you are a complete novice, it is recommended to start with Binance, OKX, Bybit and other mainstream centralized exchanges. They are simpler to operate and more suitable for getting started, and their trading depth and liquidity are still among the top in the world.
  3. Be sure to use formal channels: Whether you choose CEX or DEX, you must register and download the App through official or trusted channels! If you use pheasant links or unknown download sites, there is no guarantee of asset security.

How to start your trading journey safely?

If you decide to start with mainstream CEX, CoinRebate can help you save a lot of money. We provide permanent fee discount invitation codes for major top exchanges, and you can enjoy discounts upon registration, completely free of charge.

  • Binance: Use the referral code LULALA, click this link to register and directly receive the handling fee discount: Register Binance now
  • OKX: Use the recommendation code LULALA, click this link to register and directly receive the handling fee discount: Register OKX now
  • Bybit: Use the recommendation code ODXBWMN, click this link to register and directly receive the handling fee discount: Register Bybit now
  • Bitget: Use the recommendation code lu8888, click this link to register and directly receive the handling fee discount: Register Bitget now
  • Gate.io: Use the recommendation code UQJBUVo, click this link to register and directly receive a higher handling fee discount: Register Gate.io now

For players who want to experience DEX such as Hyperliquid, you can also register through our exclusive link, and sometimes there will be bonus points and other benefits:

  • Hyperliquid: Use the recommendation code LULALA, click this link to join: Experience Hyperliquid
  • Aster: Use the referral code 91B1d1, click this link to register and enjoy rebates: Experience Aster

Final emphasis: There are many opportunities in the currency circle, but there are also many pitfalls. Always remember – Safety First. Only play products that you understand, only use large, formal and licensed platforms, and keep your private keys safe. Take your time, it's faster.

(This article is for information sharing only and does not constitute any investment advice. The market is risky, so be cautious when entering the market.)

Share:𝕏✈️R

Comments (0)