Why Hyperliquid? · Why Hyperliquid? · 4/4
Why Hyperliquid? — Quiz
Test your understanding of how Hyperliquid is built, how HYPE and fees work, and what HLP does.
1. Under HIP-3, what must a deployer do to run its own perp DEX on Hyperliquid?
HIP-3 deployers stake 500k HYPE, which validators can slash by stake-weighted vote for malicious or irregular market operation. The deployer defines the market and operates it, including setting oracle prices and leverage limits.
2. What makes Hyperliquid's order book different from dYdX v4's?
dYdX v4 validators keep an in-memory, off-chain order book and commit matched trades on-chain. Hyperliquid's order book is part of on-chain state: validators run matching inside HyperBFT consensus, and placing or cancelling orders costs no gas.
3. What happens to the trading fees that reach Hyperliquid's assistance fund?
Fees go to HLP, the assistance fund and deployers. The assistance fund converts fees to HYPE automatically on-chain, and HYPE in the fund is treated as burned. Staking rewards come from the emissions reserve, not from fees.
4. What is the main risk for HLP depositors?
HLP is one market maker among many on the order book, so it is the counterparty only to the trades it fills. Its risks come from market making (inventory and adverse selection) and from backstop liquidations.
5. Where do HYPE staking rewards come from?
Staking rewards come from the future emissions reserve. The rate is inversely proportional to the square root of total HYPE staked — about 2.37% per year at 400M HYPE staked.