Hyperliquid’s HIP-3 Could Allow Stakers of 500,000 HYPE to Deploy Permissionless Perpetual Swap Markets

• Builders staking 500,000 HYPE can deploy permissionless perpetual markets.

• Deployers set oracles, leverage limits, fees (up to 50% share) and are responsible for market operation.

• HIP-3 aims to convert Hyperliquid into permissionless financial infrastructure, expanding tradable asset classes and lowering listing costs.

Hyperliquid HIP-3 enables permissionless perpetual markets—stake 500,000 HYPE to launch perps, capture fees and help shape DeFi infrastructure. Read the update on COINOTAG.

By COINOTAG — Published: 2025-10-13 · Updated: 2025-10-13

What is Hyperliquid HIP-3?

Hyperliquid HIP-3 is a network upgrade that makes perpetual-swap market creation permissionless on the Hyperliquid DEX. Builders who stake 500,000 HYPE (approximately $20.5 million at the time of writing) can deploy independent perpetual contracts with their own margining, orderbooks and parameters, subject to on-chain rules.

How do permissionless perpetual markets work on Hyperliquid?

Under HIP-3, deployers define market specifications — including the oracle feed and contract parameters — and operate markets directly onchain. Deployers may set a fee share of up to 50% above the base rate to recoup costs, while the protocol enforces safety through on-chain constraints and incentive structures. This model removes centralized listing gatekeepers and shares infrastructure costs among builders, theoretically lowering fixed expenses and encouraging specialized markets.

Discord message announcing the upgrade. Source: Hyperliquid

Long in the works

HIP-3 launched as a minimum viable product on testnet in late September and was enabled on mainnet with the most recent network upgrade. Analysis published by QuickNode (plain text reference) argues the proposal “replaces gatekeepers with code so teams can ship markets as fast as they can design them while keeping quality and user safety intact through onchain rules and incentives.” That assessment highlights two intended impacts: faster market innovation and maintenance of execution quality through protocol-level controls.

The proposal removes centralized listing fees, lets multiple builders share infrastructure costs, and introduces a revenue model where fee-sharing compensates deployers. QuickNode’s analysis also notes that improved execution quality and lower transaction costs can attract volume to HIP-3 markets, creating a positive feedback loop for builders.

Hyperliquid as financial infrastructure

Blockchain data-layer analysis by Chainsight (plain text reference) frames HIP-3 as a structural shift: it can convert Hyperliquid from a single exchange into permissionless financial infrastructure. Chainsight suggests this change enables new asset classes in DeFi, since virtually any reliable data feed can underlie a tradable market. Potential examples cited by industry participants include realized volatility indices, pre-IPO company valuations, forex pairs, stock indexes and exotic derivatives like correlation swaps.

Synthetic markets protocol Ventuals (plain text reference) plans to leverage HIP-3 to create perps tied to private company valuations, allowing retail and institutional participants to express views on private-company price action that were previously difficult to access on public chains.

Operational and risk considerations

HIP-3 shifts responsibilities to deployers: they must specify the oracle, set leverage and risk parameters, and be accountable for settlement and dispute resolution where applicable. On-chain rules aim to limit overtly risky configurations, but the model depends on deployers’ expertise and accurate oracle data. For market participants, this means evaluating deployer reputation, oracle robustness and fee structures before trading.

At the time of launch, staking the required 500,000 HYPE was approximately equal to $20.5 million, underscoring that initial deployers will likely be well-capitalized teams or consortia able to support market operations and liquidity provisioning.

Frequently Asked Questions

Who can create a perpetual market under HIP-3?

Any entity or individual that stakes 500,000 HYPE can deploy a perpetual-swap market on Hyperliquid. Deployers define market parameters, select the oracle and operate the market within on-chain constraints; they can also set a fee share up to 50% to recover costs and earn revenue.

How does HIP-3 affect traders looking for new markets?

Traders will see a wider variety of perp markets, including niche and synthetic instruments. Each market’s safety and liquidity depend on deployer quality, oracle integrity and fee incentives, so traders should assess market specs and deployer reputation before entering leveraged positions.

Key Takeaways

• Permissionless listings: HIP-3 lets qualified builders launch perps on Hyperliquid, democratizing market creation.
• Builder incentives: Deployers can capture up to a 50% fee share and recover infrastructure costs through fees.
• New market types: The upgrade paves the way for novel DeFi instruments—from private-company perps to exotic derivatives—anchored to diverse data feeds.

Conclusion

Hyperliquid HIP-3 represents a deliberate move toward decentralized derivatives infrastructure, enabling builders with a stake of 500,000 HYPE to permissionlessly launch perpetual markets and capture fee revenue while adhering to protocol-level safety rules. As HIP-3 markets mature, market participants and infrastructure providers will determine whether the new model delivers broader liquidity, improved execution and genuinely novel tradable assets. For ongoing coverage and analysis, follow COINOTAG’s updates.