CoinW Research Institute: Hyperliquid User Operation Guide

Background Introduction

Recently, Hypurr Fun platform and the token-listing auction mechanism of Hyperliquid has attracted extensive attention. After the token Farm launched by Hypurr Fun was listed on the spot market of Hyperliquid, its market value quickly soared to $20 million. The continuous rise of the HYPE token has drawn more users’ attention to the Hypurr Fun ecosystem. As an order-book DEX, Hyperliquid’s token listing is different from the permissionless form like Raydium. How does Hypurr, a platform similar to pump.fun, combine with it? What are the specific rules and trading processes behind it?

1. Hyperliquid: From Transparent Mechanism to Top 50 in Market Value, Redefining the DEX Market

Hyperliquid has broken the traditional “black box token listing” model.
The success of HYPE token, which entered the top 50 market value in just two weeks after TGE, once exceeded projects such as Fantom and Bittensor, and even exceeded Arbitrum itself. This success not only refocused the market’s attention on DEX but also demonstrated Hyperliquid’s precise market insight. This project did not follow the old path of VC financing, volume brushing, and then listing on exchanges and selling. Instead, it won market recognition through a transparent mechanism.

After this airdrop went viral, the popularity of Hyperliquid also began to soar.
SOLV’s record-breaking auction this time is a turning point for Hyperliquid to transform from a meme paradise to a regular onboarding. Solv Protocol will also be the first top project to be listed on Hyperliquid.

2. Hyperliquid: Open and Transparent Token Listing Mechanism Injects New Vitality into the Market

One of the reasons why Hyperliquid’s token listing mechanism has sparked extensive discussion is a tweet by Simon, the CEO of Moonrock Capital. He claimed that “Binance requires a potential project to provide 15% of its total token supply to ensure its listing on the CEX, and this accounts for 15% of the total token supply, worth about $50 million to $100 million.” Such centralized operations have deterred many project parties and investors, while Hyperliquid has injected a breath of fresh air into the market through an open and transparent token listing mechanism.

It can be said that the cryptocurrency community has long suffered from centralization. Almost all the wealth effects of each token listing are taken away by CEX (listing fees) and scientists (front-running trading after listing). Project parties will sacrifice the quality of the project due to the need to bear a not insignificant listing fee, and ultimately it is still the retail investors who bear the cost. The logic of the token listing event is the same as that of retail investors embracing memecoins and rejecting VC coins nowadays, and its core is still fairness.

3. Hyperliquid: Dutch Auction Mechanism Ensures the Fair Price of Token Listing

Hyperliquid uses the Dutch auction mechanism to determine the token listing order.
The project party needs to apply for the deployment permission of HIP-1 native tokens, and then determine the final price of the token through the Dutch auction.The auction starts at a price higher than market expectations and gradually decreases over time until a bidder accepts the price. Such a mechanism not only reflects the true psychological expectations of the bidders but also realizes the token listing at a fair price.

The specific process is a 31-hour Dutch auction, during which the token deployment fee linearly decreases from the initial price to 10,000 USDC.If the auction fails, the initial price is restored to 10,000 USDC, and if successful, the starting price of the next auction is twice the price of the last auction.For example, if the last auction was won at $100,000, then the starting price of the next auction would be $200,000, and it would decrease over time.

4. Hyperliquid: Crowdfunding Auction Mechanism Improves the Transparency and Quality of Token Listing

Hyperliquid’s token listing auction mechanism, where Hypurr Fun protocol is equivalent to establishing a “crowdfunding” platform, allows participating users to invest funds and then compete for spot token listing slots on Hyperliquid.

To deploy a token on Hyperliquid, a gas fee must be paid, which will be returned to the HLP Vault. At the same time, Hyperliquid conducts an auction every 31 hours, with a maximum of 282 token listings in a year.This passive “quota” method not only improves the quality of the listed projects but also protects the rights and interests of the community. Compared with the traditional CEX’s backroom operations, Hyperliquid’s token listing mechanism is more open and transparent, forming a virtuous cycle. Hypurr is still in its early stage and continues to rise, so there may be more “gold mining” opportunities. The tool aspect is obviously very incomplete, which is far from comparable to other mature pump ecosystems.

5. Hypurr: Real-time Token Information and Trading Dynamics through Web Version and Telegram

https://app.hypurr.fun/launches

You can query Hypurr token information and trading conditions through the web version, including basic information such as project introduction, token price, market value, trading volume, etc.

New tokens can be obtained through the Telegram channel. The path is Hypurr official bot → Prelaunch market channel → Launch Alert sub-channel. Through Telegram, you can know in real time which new tokens have been added without refreshing the web page.

6. Hypurr Fun: Multi-channel Token Purchase through Telegram Bot and Web Version

Currently, Hypurr Fun only supports purchases through the Telegram Bot. After entering the Bot, there will be a pop-up message providing the wallet address. You can also obtain more information through the Wallet module. Currently, only transfers and deposits from Hyperliquid L1 or Arbitrum are supported. It should be noted that only native USDC deposits are supported (USDC.e is not supported).

There are two main ways to purchase tokens:

1. Jump from the web version to the token channel and jump to the Trade interface through the pinned message.

2. Purchase through “launches” (sorted by trading volume or price) or “/chat” on the Telegram homepage. The former is an official data screening tool, and you can directly select the purchase quantity after clicking. The latter is an open chat channel where users can discover popular tokens and click to jump for trading.

7. Hypurr Fun and Hyperliquid: Project Heat Soars, Wealth Effect and FOMO Sentiment Reappear

Since many projects on Hypurr Fun are only 5% complete, it means that when the progress reaches 100%, the liquidity of the pool will increase by 20 times, and the corresponding market value can be imagined. It is expected to exceed 20 times. Many people will focus on projects with a progress of about 5% and high community heat. In recent days, many friends have joined WeChat groups to pay attention to everyone’s “new token” situation, to see if they can also get a share. The price can increase dozens of times a day, but often the difficulty in using the Telegram group for buying and selling operations has prevented many people from entering the market. Many projects on the Hyperliquid platform have shown significant wealth effects. Users are highly enthusiastic, and the overall atmosphere is reminiscent of the hot scene of IDO in early 2020. On the Hyperliquid platform, market participants show extremely high level of activity. Whether it is online community or offline communication, users show strong participation enthusiasm. The “FOMO” sentiment in the market is particularly significant, and the launch of each new project attracts a lot of attention and investment.

8. In-depth Thinking about the Success of Hyperliquid

The success of Hyperliquid is not accidental. Its epic airdrop and transparent token listing mechanism have great educational significance for the market. Founder Jeff decided not to trust CEX after the bankruptcy of FTX and refused VC investment. He believes that many projects beautify the data through VC investment and finally exit through listing on large trading platforms, which is unsustainable. Hyperliquid has witnessed the victory of the decentralized spirit. The transparent and open mechanism and strong community cohesion have pushed Perp DEX to a new height.

All in all, Hyperliquid’s token listing mechanism has revolutionarily changed the existing CEX’s black box token listing operation and promoted the openness and transparency of the entire industry. In the call of the market, fairness and openness have become the new standards, and Hyperliquid is undoubtedly at the forefront of this trend.

Risk Warning: The above content is about Hyperliquid’s token-listing auction mechanism and Hypurr Fun’s “crowdfunding” platform operation, only for demonstration purposes. The tutorial for buying and selling on the internal market does not involve specific projects. The operation risk is high, and there may be high losses. Please participate with caution.