Key Takeaways
What is the HIP-3?
The Hyperliquid Improvement Proposal-3 allows permissionless deployment of new perpetual swap markets. This is a builder-deployed perpetuals initiative.
What will be the impact on HYPE prices?
Over time, the latest upgrade is expected to attract new traders and market makers, as well as novel markets. This, in turn, would see greater demand for HYPE.
The popular onchain decentralized exchange and L1 blockchain Hyperliquid launched a new upgrade to its HIP-3 (Hyperliquid Improvement Proposal).
This upgrade is called the HIP-3 growth mode, designed to help attract activity to new markets. It was announced on the 19th of November.
The upgrade comes a month after the HIP-3’s launch, which enabled anyone to create a perpetuals Futures market on the network, provided they have 500,000 Hyperliquid [HYPE] tokens.
The upgrade will slash all-in taker fees by 90% or more when growth mode is active. Rebates and volume contributions will also be 90% lower.
The growth mode can be activated on a per-asset basis, sans permission.
The usual taker fees of 0.045% in the main markets will drop to 0.0045%-0.009%. The top volume and staking tiers will see even lower fees of 0.00144%-0.00288%.
Growth mode markets can’t include Bitcoin or similar markets, nor any of the other existing markets, to prevent “parasitic volume.”
ETFs, crypto indexes, or other baskets of crypto will not qualify either. Validators can vote to turn off growth mode for any market they think is breaking the rules.
Reduced Hyperliquid fees to turbo-boost new markets
Source: Hyperliquid Stats
Hyperliquid stats showed increasing numbers of daily unique users over the past year.
This steady growth was also evident in the rapid explosion in Open Interest since March, though the OI has cratered noticeably since the 10/10 crash.
Some Crypto Twitter denizens were quick to embrace HIP-3 and the recent upgrade as a huge positive for the market.
One user highlighted the natural allure of the Hyperliquid onchain DEX, accessible from anywhere and needing no KYC.
This powerup meant “you are not bullish enough on HIP-3,” as another user put it.
Another post read,
“it’s a turbo-boost for innovation on the fastest L1 for derivatives. We’re talking 5-10x lower costs than legacy chains, drawing in wild assets that validators never touched—real-world yields, exotic commodities, tokenized treasuries on STEROIDS. Deployers, get ready to flood the chain with alpha markets. Traders, brace for volume explosions and razor-thin spreads.”
The impact on HYPE and HYPE holders is also expected to be bullish. The token has been trading within a range from $36.5 to $43.3 in November.
Since May, most of its price action was confined within the $32.5-$50 region.
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