Exploring the Hyperliquid Chain Ecosystem: A Deep Dive

The Hyperliquid Chain, a high-performance Layer 1 (L1) blockchain, has rapidly emerged as a powerhouse in the decentralized finance (DeFi) space. Designed to deliver the speed and efficiency of centralized exchanges while maintaining the transparency and decentralization of blockchain technology, Hyperliquid is redefining on-chain trading and financial applications. Its flagship decentralized exchange (DEX) for perpetual futures, combined with the recent launch of HyperEVM, has attracted a vibrant ecosystem of projects ranging from DeFi protocols to meme token launchpads and AI-driven applications. In this extensive blog post, we’ll explore the Hyperliquid ecosystem, highlight key projects, and discuss the chain’s unique features, potential, and challenges.

What is Hyperliquid?

Hyperliquid is a Layer 1 blockchain optimized for high-frequency trading and DeFi applications. Launched in 2023, it operates on a custom consensus algorithm called HyperBFT, derived from the HotStuff protocol, which enables sub-second block finality and throughput of up to 200,000 orders per second. Unlike many DEXs that rely on automated market makers (AMMs), Hyperliquid uses a fully on-chain Central Limit Order Book (CLOB), offering deep liquidity, low slippage, and a trading experience comparable to centralized exchanges like Binance.

The chain’s native token, $HYPE, powers the ecosystem, serving as a utility token for transaction fees, staking, and governance. Hyperliquid’s airdrop of 310 million $HYPE tokens in November 2024, valued at over $1.2 billion, was one of the largest in crypto history, distributing 31% of the token supply to early users. This community-centric approach, combined with its self-funded model (eschewing venture capital), has fueled Hyperliquid’s rapid growth, with cumulative trading volume approaching $1 trillion by early 2025.

Hyperliquid’s ecosystem is further enhanced by its HyperEVM, an Ethereum Virtual Machine (EVM) execution layer integrated into the L1 blockchain. Launched on February 18, 2025, HyperEVM allows developers to deploy Ethereum-compatible smart contracts while leveraging Hyperliquid’s high-speed consensus and native financial primitives. This makes Hyperliquid a versatile platform for building advanced DeFi applications, tokenized assets, and innovative trading tools.

Key Features of the Hyperliquid Chain

Before diving into the ecosystem projects, let’s highlight the core features that make Hyperliquid a compelling platform for developers and users:

• High Performance: HyperBFT enables block confirmation times under one second (median latency of 0.2 seconds) and supports over 200,000 transactions per second, with potential scalability exceeding 1 million orders per second.
• On-Chain Order Book: Unlike AMM-based DEXs, Hyperliquid’s CLOB ensures efficient price discovery, transparency, and support for advanced order types, including perpetual futures with up to 50x leverage.
• HyperEVM: An EVM execution layer secured by HyperBFT, enabling Ethereum-compatible smart contracts to interact directly with Hyperliquid’s native order books and liquidity.
• HIP-1 and HIP-2 Standards:
  • HIP-1: Allows projects to deploy native tokens linked to Hyperliquid’s on-chain spot order books, reducing barriers to token launches.
  • HIP-2: Provides automated liquidity for new tokens, addressing liquidity shortages and ensuring smooth trading.
• Zero Gas Fees: Hyperliquid eliminates gas fees for trading, with standard maker fees up to 0.01% and taker fees around 0.035%, making it cost-effective for high-frequency trading.
• Community-Centric Model: With 76.2% of $HYPE allocated to the community and no venture capital backing, Hyperliquid prioritizes user engagement and fairness.
• Vaults: Users can deposit funds into vaults for copy trading, market-making, or liquidation strategies, sharing profits and losses (P&L) with vault operators.

These features create a fertile ground for developers to build innovative projects, from lending protocols to meme coin launchpads, all seamlessly integrated with Hyperliquid’s high-performance infrastructure.

The Hyperliquid Ecosystem: Key Projects

The Hyperliquid ecosystem is rapidly expanding, with projects spanning DeFi, gaming, NFTs, AI, and meme tokens. Below, we explore some of the most notable initiatives, categorized by their primary function, based on recent developments and community activity.

DeFi Protocols

Hyperdrive

• Overview: Hyperdrive is an all-in-one DeFi hub on Hyperliquid, offering spot lending markets, liquid staking of $HYPE, and advanced yield strategies. It aims to simplify DeFi interactions by integrating multiple financial services into a single platform.
• Key Features:
  • Spot lending markets for borrowing and lending assets.
  • Liquid staking for $HYPE, allowing users to earn rewards while maintaining liquidity.
  • Yield optimization strategies for maximizing returns.
• Impact: Hyperdrive enhances capital efficiency within the Hyperliquid ecosystem, attracting users seeking passive income and leveraged opportunities.

Hyperlend

• Overview: Hyperlend is a decentralized lending protocol on Hyperliquid’s HyperEVM, similar to Aave. It supports $HLP (Hyperliquid Points) vaults as collateral, unlocking leveraged yield opportunities.
• Key Features:
  • Borrowing and lending of native and EVM-based assets.
  • Integration with $HLP vaults for collateralized lending.
  • Planned expansion to support cross-chain assets.
• Impact: As the first native lending protocol, Hyperlend strengthens Hyperliquid’s DeFi ecosystem by providing essential financial infrastructure.

HarmonixFi

• Overview: HarmonixFi is a vault-based protocol where users can deposit assets to farm $HYPE and points for future airdrops. It focuses on yield farming and community-driven incentives.
• Key Features:
  • Vault deposits for earning $HYPE and points.
  • Integration with Hyperliquid’s testnet for early adopters.
  • Community governance for protocol upgrades.
• Impact: HarmonixFi incentivizes user participation and drives ecosystem engagement through reward mechanisms.

feUSD

• Overview: feUSD is a native CDP stablecoin by Felix protocol where users can deposit $HYPE, $PURR, and other assets to mint a stablecoin pegged to the US dollar. It aims to provide price stability for trading and DeFi applications.
• Key Features:
  • Collateralized minting with ecosystem tokens.
  • Integration with Hyperliquid’s trading infrastructure.
  • Planned use in lending and staking protocols.
• Impact: A stablecoin like feUSD could significantly boost Hyperliquid’s DeFi ecosystem by enabling stable trading pairs and reducing volatility risks.

Hyperstable

• Overview: Hyperstable is a crypto-backed, over-collateralized, and decentralized stablecoin protocol on HyperEVM, designed to maintain a $1 peg for its USH stablecoin. Launched in 2024, it features a dual-token system with USH and the PEG governance token, where users can mint USH by depositing supported collateral (e.g., $HYPE) into non-custodial vaults. Hyperstable incentivizes growth through a Borrowing Rebate program, distributing weekly PEG tokens to offset interest costs, and a Referral Bonus for user acquisition. Liquidity providers can farm PEG by staking on AMMs like Curve, while vePEG holders lock tokens to earn 100% of protocol revenue in USH and vote on emissions. With a TVL of $2.53 million and a 24-hour trading volume of $822,936, Hyperstable has undergone audits by firms like 0x52 and Pashov Audit Group. Its innovative vote-escrow tokenomics and high-yield opportunities (20-50% APR on stable pools) make it a compelling DeFi platform.

• Impact: Hyperstable’s stablecoin and governance model enhance Hyperliquid’s DeFi ecosystem, providing price stability and attractive yields for borrowers, liquidity providers, and token holders.

KittenSwap

• Overview: KittenSwap is a decentralized exchange (DEX) built on HyperEVM, launched in December 2024, and designed as a fork of Velodrome. It implements the innovative ve(3,3) tokenomics model, combining automated market maker (AMM) efficiency with a governance and reward system that aligns the interests of liquidity providers, token holders, and protocol developers.

• Impact: KittenSwap’s ve(3,3) model and community-driven incentives, including its points program and NFT integration, make it a cornerstone of Hyperliquid’s DeFi ecosystem, driving user engagement and liquidity provision.

Valantis

• Overview: Valantis is a modular decentralized exchange (DEX) protocol on HyperEVM, launched in 2023 by Valantis Labs, designed to empower developers to create customized, composable DEXes. Its Sovereign Pools and Core Pools use reusable modules for pricing logic, fee calculation, oracle services, and liquidity management, mitigating liquidity fragmentation through shared external vaults. Valantis supports rebase tokens, such as liquid staking tokens (LSTs), and its HOT-AMM pool has facilitated over $50 million in trading volume with $5 million in liquidity. With $44.21 million in total value locked (TVL) on Hyperliquid, Valantis offers yield opportunities, including swap fees, lending, staking, and 2x HypurrFi points for $HYPE deposits. Backed by $7.5 million in funding from investors like Triton Capital and Anthony Sassano, Valantis is a cornerstone of Hyperliquid’s DeFi infrastructure, enabling developers to build innovative DEX designs with enhanced security and capital efficiency.

• Impact: Valantis’s modular framework and support for advanced DeFi features make it a critical liquidity hub, driving developer adoption and trader engagement.

Hyperbeat

• Overview: Hyperbeat is a decentralized lending and borrowing protocol on Hyperliquid’s HyperEVM, launched in early 2025, designed to enhance capital efficiency for traders and liquidity providers. It allows users to lend assets like $HYPE, $KITTEN, and stablecoins to earn interest or borrow against collateral to participate in Hyperliquid’s spot and perpetual futures markets. Hyperbeat integrates with Hyperliquid’s native order books, enabling seamless interaction between lending pools and trading activities. The protocol offers dynamic interest rates based on market demand and supports overcollateralized loans to ensure stability. With a focus on user-friendly interfaces and low-latency transactions, Hyperbeat has attracted significant attention, boasting $20 million in TVL within its first month. Its points-based reward system incentivizes early adopters, with plans for a native token launch to further align community interests.
• Impact: Hyperbeat strengthens Hyperliquid’s DeFi ecosystem by providing critical lending infrastructure, enabling leveraged trading and yield opportunities for a broad range of users.

Trading and Analytics Tools

Pvp.trade

• Overview: Pvp.trade is a Telegram-based trading bot for spot and perpetual futures on Hyperliquid. It integrates social and competitive trading features, allowing users to earn points for future airdrops.
• Key Features:
  • Leveraged and spot trading via Telegram.
  • Social trading features to view group members’ positions.
  • Point accumulation based on trading volume for $PVP token airdrops.
• Impact: With $PVP auctioned for $200,000, Pvp.trade has garnered significant attention for its gamified trading experience and airdrop potential.

Insilico Terminal

• Overview: Insilico Terminal is a trading tool leveraging AI to provide advanced market analytics and trading signals for Hyperliquid users(it also support a bunch of centralized exchanges Binance, Coinbase Pro, Bybit, OKX, Bitmex).
• Key Features:
  • AI-driven market predictions and trading strategies.
  • Real-time analytics for spot and derivatives markets.
  • Integration with Hyperliquid’s order books.
• Impact: Insilico enhances trading efficiency, appealing to professional traders seeking data-driven insights.

Katoshi AI

• Overview: Katoshi AI is an AI-powered trading platform that automates strategies and provides predictive analytics for Hyperliquid’s markets.
• Key Features:
  • Automated trading bots for perpetuals and spot markets.
  • Predictive models for price movements.
  • User-friendly interface for retail traders.
• Impact: Katoshi AI democratizes advanced trading tools, making Hyperliquid accessible to a broader audience.

Meme Token and NFT Platforms

HypurrFun

• Overview: HypurrFun is a meme coin launchpad inspired by Solana’s Pump.fun, tailored for Hyperliquid’s ecosystem. Users participate in token auctions via a Telegram bot or website, using USDC to bid on new tokens.
• Key Features:
  • Off-chain bonding curve for token creation (due to lack of smart contracts pre-HyperEVM).
  • Public auctions for listing tokens on Hyperliquid’s spot exchange.
  • Successful projects include $PIP and $JEFF meme tokens.
• Impact: HypurrFun drives community engagement and meme token speculation, with tokens like $PIP gaining traction.

Hypio

• Overview: Hypio is a popular NFT collection within the Hyperliquid ecosystem, launched in January 2025. It aims to integrate NFTs with DeFi and gaming use cases.
• Key Features:
  • Unique NFT assets with utility in Hyperliquid’s ecosystem.
  • Planned integration with gaming and staking protocols.
  • Community-driven design and governance.
• Impact: Hypio adds a creative dimension to Hyperliquid, attracting NFT enthusiasts and collectors.

TheFarm.fun

• Overview: TheFarm.fun is a pioneering AI-powered gaming platform on Hyperliquid, launched in 2024, that combines generative AI and blockchain to create a unique on-chain creature generation system. Users can mint pixelated NFT creatures from real animal photos using a proprietary GenAI model, with the top 50 creatures, known as “The Ancestors,” forming the foundation of the ecosystem. The platform has confirmed a $FARM token airdrop, allocating 5% of the total supply to reward creators and voters, with 50% for Ancestors, 30% for other minted creatures, and 20% for voters selecting Ancestors. TheFarm.fun’s roadmap includes simulation gameplay and battle/esports features, aiming to build a comprehensive gaming ecosystem. With strong community engagement and innovative AI integration, it has quickly gained traction, offering a novel blend of creativity and gamification.

• Impact: TheFarm.fun’s AI-driven NFT creation and planned gaming features position it as a leader in Hyperliquid’s gaming ecosystem, attracting creators and gamers seeking innovative blockchain experiences.

Infrastructure and Interoperability

HyBridge

• Overview: HyBridge is a community-developed cross-chain bridging protocol that supports asset transfers from seven blockchains (e.g., Ethereum, Solana, Arbitrum) to Hyperliquid. It processes millions of transactions daily.
• Key Features:
  • Cross-chain transfers of USDC, USDT, $HYPE, and ecosystem tokens.
  • Minimal fees and high throughput.
  • Direct conversion to Hyperliquid-native assets.
• Impact: HyBridge simplifies onboarding, making Hyperliquid accessible to users across multiple chains.

Hyperunit

• Overview: Hyperunit is a tokenization layer enabling native BTC and ETH spot markets on Hyperliquid. It captures 50% of trading fees and is positioned for a major token launch.
• Key Features:
  • Tokenization of major assets for spot trading.
  • Revenue-sharing model for fee distribution.
  • Integration with Hyperliquid’s order books.
• Impact: Hyperunit enhances Hyperliquid’s spot market offerings, attracting institutional and retail traders.

Goldsky

• Overview: Goldsky is a data indexing platform that provides real-time analytics for Hyperliquid’s blockchain and DeFi applications.
• Key Features:
  • High-speed data indexing for transactions and smart contracts.
  • Developer-friendly APIs for building analytics tools.
  • Support for HyperEVM-based dApps.
• Impact: Goldsky empowers developers with robust data infrastructure, fostering ecosystem growth.

Gaming and Entertainment

Playmoon

• Overview: Playmoon is an emerging gaming platform on Hyperliquid, launched in 2025, focused on delivering competitive and social gaming experiences integrated with blockchain technology. Accessible via its login portal at playmoon.xyz/login, Playmoon emphasizes user-driven challenges and tokenized rewards, allowing players to earn assets through gameplay. While still in its early stages, the platform aims to leverage Hyperliquid’s high-throughput infrastructure to support fast-paced, on-chain gaming mechanics. Playmoon’s social media presence, including a Facebook page with 56 likes, highlights its tagline “Défiez l’intouchable” (Challenge the Untouchable), suggesting a focus on competitive leaderboards or tournaments. Future plans include integrating with Hyperliquid’s spot markets for trading in-game assets and expanding its game offerings.

• Impact: Playmoon’s competitive gaming model and blockchain integration add a dynamic entertainment layer to Hyperliquid, appealing to gamers and crypto enthusiasts alike.

MON Protocol

• Overview: MON Protocol is a blockchain-based gaming and IP distribution platform integrated with Hyperliquid, designed to govern and distribute intellectual property (IP) ecosystems through tokenization. Launched in 2024, it enables developers to create and monetize gaming assets, with over 100 partner projects and $20 million in token rewards distributed to $MON token holders. The protocol’s Launchpools allow $MON stakers to access partner tokens, while its community pre-sale of 62,092,000 $MON tokens (6.21% of supply) at $0.099 per token raised significant interest. MON Protocol also supports NFT staking for earning $MON, fostering user acquisition and community curation through granular, on-chain incentives. Its integration with Hyperliquid’s HyperEVM enables seamless asset trading and DeFi interactions, positioning it as a key player in the gaming ecosystem.

• Impact: MON Protocol’s focus on IP governance and tokenized gaming rewards enhances Hyperliquid’s gaming and DeFi synergy, attracting developers and players to its expansive ecosystem.

Sovrun

• Overview: Sovrun, formerly BreederDAO, is a gaming asset platform and the first Layer 2 on Hyperliquid. It focuses on tokenized gaming assets and is backed by a16z and Delphi.
• Key Features:
  • Tokenized gaming assets for trading and staking.
  • Layer 2 scalability for high-throughput gaming dApps.
  • Listed on Hyperliquid’s spot exchange.
• Impact: Sovrun bridges gaming and DeFi, expanding Hyperliquid’s use cases.

Ecosystem Dynamics and Trends

Token Auctions and Community Engagement

Hyperliquid’s HIP-1 token auctions have become a hallmark of its ecosystem, with projects bidding $300,000 to $1 million for listing on the spot exchange. These auctions, paid in USDC, reflect the high demand for Hyperliquid’s liquidity and trading infrastructure. Notable examples include $GOD ($1 million) and $PVP ($200,000), showcasing the competitive nature of securing a ticker.

The community-driven HypurrCollective aggregates ecosystem projects and supports builders, while HypurCo, with 30 million $HYPE staked (worth $600 million), operates one of the largest validator nodes. This community-first approach, combined with airdrop incentives (e.g., $HYPE, $PVP), fosters strong user engagement.

HyperEVM’s Role

The launch of HyperEVM in February 2025 marked a turning point, enabling developers to build smart contract-based dApps. Projects like Hyperlend, Hyperdrive, and SOVRN leverage HyperEVM’s composability, integrating with Hyperliquid’s native order books and liquidity. This has attracted mainstream DeFi protocols, with Ethena Labs exploring integration to reduce reliance on centralized exchanges.

Meme Token Boom

Meme tokens like $PIP, $JEFF, and $PURR (Hyperliquid’s mascot) have gained traction, driven by HypurrFun’s accessible launchpad. While early auctions focused on meme tokens, recent trends show a shift toward utility-driven projects (e.g., $SOLV, $SWELL), indicating a maturing ecosystem.

Challenges and Risks

Despite its rapid growth, Hyperliquid faces several challenges:

• Ecosystem Richness: The ecosystem lacks a complete DeFi loop, with limited application scenarios beyond trading, lending, and staking. Expanding use cases (e.g., options, structured products) is critical.
• Security Risks: Hyperliquid has faced scrutiny over potential vulnerabilities, including state-sponsored hacking attempts (e.g., Lazarus Group) and risks of reentrancy or oracle manipulation. Regular audits, like Zellic’s review of bridge and staking logic, are essential.
• Liquidity Risks: New tokens often face low liquidity, though HIP-2 mitigates this. Sustaining deep liquidity across trading pairs remains a challenge.
• Regulatory Compliance: As global regulations tighten, Hyperliquid must balance innovation with compliance to avoid legal hurdles.
• Stablecoin Integration: The absence of a native stablecoin (beyond feUSD) could hinder DeFi adoption. A robust stablecoin could enhance trading stability and attract institutional users.

Addressing these challenges will require continuous innovation, community governance, and strategic partnerships.

Future Potential and Outlook

Hyperliquid’s roadmap emphasizes ecosystem expansion, with plans to:

• Launch more DeFi derivatives (e.g., options, leveraged products).
• Attract third-party developers through open protocols and incentives.
• Integrate native assets like BTC, ETH, and SOL for spot trading.
• Enhance HyperEVM with advanced smart contract capabilities.

Industry experts, like Ryan Watkins of Syncracy Capital, predict Hyperliquid could become the top blockchain by fee generation in 2025, driven by its comprehensive business model and growing trading volume (currently $500 million daily for spot trading). The platform’s ability to combine spot, derivatives, and blockspace via HyperEVM positions it as a DeFi superchain.

The upcoming launch of a native stablecoin, potential cross-chain integrations, and increasing developer activity (e.g., Insilico Terminal, Katoshi AI) signal a bright future. As Hyperliquid matures, it could rival established L1s like Ethereum and Solana, particularly in the DeFi and trading sectors.

How to Get Involved

• Trade on Hyperliquid DEX: Connect a wallet at app.hyperliquid.xyz and bridge USDC or USDT from Arbitrum to trade perpetuals or spot markets.
• Participate in Airdrops: Engage with projects like Pvp.trade, HarmonixFi, or HypurrFun to earn points for future token distributions.
• Build on HyperEVM: Developers can deploy smart contracts using Ethereum-compatible tools, leveraging HyperEVM documentation and APIs.
• Stake $HYPE: Stake $HYPE via liquid staking protocols like Hyperdrive to earn rewards and support network security.
• Explore Hyperliquid Ecosystem: Here is a great Public Hyperliquid Ecosystem Database by HypurrCollective.
• Join the Community: Follow @HyperliquidX, @hypurr_co, and HypurrCollective on X for updates, or participate in governance via $HYPE voting.

Conclusion

The Hyperliquid Chain ecosystem is a dynamic and rapidly evolving landscape, blending high-performance trading with innovative DeFi and entertainment applications. Projects like Hyperlend, Pvp.trade, HypurrFun, showcase the chain’s versatility, while HyperEVM’s launch has opened the door to a new wave of smart contract-based dApps. With its community-centric model, zero gas fees, and unparalleled throughput, Hyperliquid is well-positioned to lead the next generation of on-chain finance.

However, challenges like ecosystem richness, security, and regulatory compliance must be addressed to sustain growth. As Hyperliquid continues to innovate and attract developers, it has the potential to redefine decentralized trading and become a cornerstone of the DeFi ecosystem. Whether you’re a trader, developer, or crypto enthusiast, now is the time to explore Hyperliquid’s vibrant ecosystem and join the revolution.