Hyperliquid Unleashes HIP-3 Growth Mode to Slash Trading Fees by 90 Percent

TLDR:

• Hyperliquid’s HIP-3 cuts trading fees by 90%, enhancing liquidity and innovation.
• HIP-3 slashes fees to 0.0045% to attract new markets and boost decentralized finance
• New HIP-3 growth mode offers ultra-low fees, expanding Hyperliquid’s market share.
• Hyperliquid’s HIP-3 empowers deployers with low fees and flexible market creation.
• HIP-3 unlocks low-cost trading for new assets, enhancing liquidity and growth.

Hyperliquid has launched its HIP-3 growth mode, reducing trading fees for new markets by over 90 percent. The new upgrade enables deployers to activate ultra-low fees without centralized approval, enhancing liquidity and boosting market-making incentives. By implementing HIP-3, Hyperliquid strengthens its position as a key player in decentralized derivatives trading, aiming to compete directly with centralized platforms like Binance and Bybit.

HIP-3 Growth Mode Brings Low Fees for Newly Deployed Markets

Under the HIP-3 growth mode, all-in taker fees drop from the standard 0.045 percent to as low as 0.0045 percent. Deployers can set these fees on a per-asset basis, providing flexibility and further lowering trading costs. At the highest staking and volume tiers, the fees can reduce even further to between 0.00144 percent and 0.00288 percent.

This drastic reduction in fees aims to overcome one of the main challenges in decentralized finance—the cold-start liquidity problem. By lowering costs for early-stage markets, Hyperliquid seeks to foster innovation and attract both traders and market makers. The move is expected to make it easier for deployers to introduce new assets and derivatives contracts without worrying about prohibitive trading costs.

Markets activated under HIP-3 must meet specific criteria to avoid market overlap with existing validator-operated products. For instance, crypto perpetuals, crypto indexes, and assets tracking established markets are excluded. This ensures the growth mode only supports new, unique markets that can drive platform diversity without diluting liquidity.

HIP-3 Growth Mode Enhances Hyperliquid’s Market Share in Decentralized Finance

The HIP-3 framework builds on the platform’s success in decentralized perpetual futures markets. With this latest update, Hyperliquid has positioned itself to capture off-chain assets like equities, commodities, and foreign exchange pairs. This strategy aims to expand the product offering and attract markets that typically remain outside the reach of decentralized exchanges.

To qualify for growth mode, deployers must stake 500,000 HYPE tokens, currently valued at around $20 million. This staking requirement ensures that deployers have a vested interest in the success of the markets they launch. Validators have the power to slash stakes in cases of malicious market operation, ensuring network security.

HIP-3’s impact is already evident, with recent deployments such as the XYZ100 market, which tracks the top 100 U.S. non-financial companies, generating over $1.3 billion in volume. The launch of the Tesla perpetual contract further highlights the platform’s potential to support both crypto and equity-based derivatives. Hyperliquid’s HIP-3 growth mode accelerates its goal to become the go-to infrastructure layer for all on-chain finance.

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