In today’s crypto market, traders often struggle to find exchanges that balance speed, security, and transparency. Centralized exchanges (CEXs) may lack decentralization, while decentralized exchanges (DEXs) frequently suffer from liquidity and slow execution. Hyperliquid emerges as a solution—a DEX powered by its own Layer-1 blockchain that offers zero gas fees, on-chain transparency, and high-speed trading.
This review explores Hyperliquid’s features, advantages, drawbacks, and controversies to help you decide if it’s the right platform for your trading needs.
What Is Hyperliquid Exchange?
Founded in 2023 by Harvard alumni Jeff Yan and Iliensinc, Hyperliquid is a decentralized exchange built on HyperEVM, a custom Layer-1 blockchain. Unlike traditional DEXs, Hyperliquid combines the speed of CEXs with the security of DeFi, offering:
- Perpetual futures with up to 50x leverage
- Cross-margin trading
- Fully on-chain order books
- Zero gas fees
👉 Discover how Layer-1 blockchains revolutionize trading
Key Features of Hyperliquid
1. Fully On-Chain Order Book
Every trade is recorded directly on Hyperliquid’s blockchain, ensuring complete transparency—unlike platforms relying on off-chain matching engines.
2. Lightning-Fast Execution
Hyperliquid’s HyperBFT consensus processes 100,000+ orders per second, enabling sub-second trade confirmations even during market volatility.
3. Zero Gas Fees
Traders pay no gas fees, only minimal maker/taker fees, making the platform cost-effective for high-frequency trading.
4. Liquidity Vaults
Users earn rewards by staking assets in liquidity vaults, deepening the platform’s liquidity pools while earning passive income.
5. Advanced Trading Tools
Features include:
- 50x leverage on perpetuals
- Isolated and cross-margin options
- Copy trading
What Makes Hyperliquid Unique?
Custom Layer-1 Blockchain
Hyperliquid’s purpose-built blockchain optimizes trading performance, rivaling CEX speeds while remaining decentralized.
Community-Centric Model
- HIP-based listings: Tokens are added via community proposals.
- Airdrops and rewards: Active users benefit directly.
Recent Controversies
Hyperliquid faced backlash after the JELLY token incident, where a $10M+ loss occurred due to price manipulation. Critics accused the platform of:
- Centralized decision-making (delisting JELLY post-fiasco)
- Poor risk controls
- Slow customer support
While Hyperliquid pledged partial refunds, trust erosion highlights the need for improved governance.
Pros and Cons
| Pros | Cons |
|------|------|
| ✅ No KYC required | ❌ No fiat deposits |
| ✅ 50x leverage | ❌ USDC-only withdrawals |
| ✅ On-chain transparency | ❌ Early-stage network risks |
| ✅ Copy trading | ❌ Liquidity fluctuations |
FAQ Section
1. Is Hyperliquid safe to use?
Hyperliquid’s on-chain infrastructure enhances transparency, but the JELLY incident underscores risks. Always audit smart contracts before trading.
2. Does Hyperliquid charge gas fees?
No. Trades incur only minimal maker/taker fees.
3. What assets does Hyperliquid support?
Currently, Hyperliquid focuses on perpetuals and USDC-denominated pairs.
👉 Explore decentralized trading strategies
Final Verdict
Hyperliquid’s Layer-1 blockchain and zero-fee model position it as a strong DEX alternative, but its centralization controversies demand caution. For traders prioritizing speed and transparency, Hyperliquid is worth testing—with smaller funds until trust rebuilds.