What is Hyperliquid?

It’s one of the fastest-growing decentralized exchanges out there — built by an anonymous team, no flashy venture capital backing, and already processing billions in trading volume. What makes it unique is not just the tech (ultra-fast trading), but how it’s owned: tokens are broadly distributed, giving users real influence.

What does Hyperliquid?

Hyperliquid is a decentralized perpetual futures exchange — essentially a place where traders can bet on crypto prices going up or down, with leverage, without relying on centralized players like Binance or Bybit. Unlike most exchanges, Hyperliquid runs fully on-chain, combining speed and transparency in a way that puts it in direct competition with centralized exchanges while keeping the ethos of DeFi alive.

Its edge:

• Ultra-fast performance with a custom-built blockchain for trading.

• Global reach with billions in daily volume despite being a newcomer.

• Community-driven governance, making it stand out from VC-heavy rivals.

Hyperliquid & Decentralization

When Hyperliquid launched its token (HLP), it did something unusual: instead of selling large chunks to VCs or insiders, the majority went to the community through one of the fairest airdrops in DeFi history. Traders who had used the platform earned meaningful allocations.

Why people consider it especially decentralized:

• No big VC “tax” or lockups weighing down the token.

• Tokens spread widely among active users, aligning incentives.

• Decisions about the platform are now made by a broad group of holders.

The other perspective:

Some critics argue that airdrops favor insiders too — those already deep in DeFi or whales who can trade large volumes. So while Hyperliquid avoided VC concentration, it may still not be a perfectly “equal” distribution. Still, compared to many peers, the launch is widely regarded as one of the most decentralized in recent memory.

The Role of Stablecoins in Hyperliquid

Like every trading venue, Hyperliquid needs a stable “cash” currency to settle trades. Enter USDH, their in-house stablecoin. But instead of simply choosing a bank partner or deciding behind closed doors, Hyperliquid runs a bidding process.

The USDH Bidding Process

Think of it like a public tender:

• Big players (market makers, liquidity providers, institutions) submit bids to become the official backers of USDH.

• Their bids usually involve promises of liquidity depth, spreads, and incentives to make USDH stable and usable.

• Token holders (the community) get to decide who wins — meaning the outcome is not dictated by a small board but by the broader network.

• The entire process is transparent, with results visible in real time.

Whoever wins not only gets prestige but also a central role in powering the exchange’s stablecoin economy.

Why It’s Special

• No boardrooms, no suits — the decision rests with token holders.

• It’s a live, public competition between some of the biggest names in crypto — which tells you how much money is at stake.

• It’s one of the clearest examples of decentralization applied to a basic financial function: choosing who gets to run the “cash register” of an exchange.

Closing Thoughts

Hyperliquid is a rare case:

• No VC funding, yet a breakout success.

• Rooted in decentralization, with governance by the community.

• Using a stablecoin in the most fundamental way: as the dollar of the system.

• And now, giants are battling publicly for the right to back it — in front of everyone, not hidden in boardrooms.

This raises bigger questions:

👉 Are we seeing the early playbook for how financial infrastructure will work in the future?

👉 And when the public can literally watch money markets being built in real time, how long until traditional finance feels the pressure to open its doors even further?

I for once, am closely watching this unfold, so I can tell the tales about how all that started later on. While I am aware that this might be a nerdy topic outside of finance-affine circles, stuff like this strengthens my conviction in decentralised finance further and further.

Thanks for reading in 🤍

// Kai