Hyperliquid, a decentralized perpetual futures exchange built on its own high-performance Layer 1 blockchain, has recently activated HIP-3 Growth Mode, a key upgrade designed to accelerate the launch and adoption of new markets, particularly for equities and other asset classes.
This feature, part of Hyperliquid Improvement Proposal 3 (HIP-3), enables permissionless market deployment — meaning anyone can create and list new perpetual contracts (perps) without centralized approval — while slashing trading fees by over 90% to supercharge liquidity and trading volume.
Standard taker fees on Hyperliquid are around 0.045%. In Growth Mode, these drop to as low as 0.0045%-0.009% a 90%+ cut, including rebates and volume-based contributions. Protocol fees and maker rebates are also reduced by 90%, making it one of the lowest-cost venues in DeFi for new listings.
Deployers can toggle Growth Mode on a per-asset basis for HIP-3 markets. It’s now live on most HIP-3 equities and other perps, with recent announcements confirming broad rollout. Focused on “equities” (e.g., tokenized stock perps like XYZ assets) and other under-liquidated markets to attract traders quickly.
By minimizing costs, Growth Mode encourages early trading activity, reducing slippage price impact from trades by over 90% in many cases. This creates a flywheel: more volume, better liquidity and more users.
HIP-3 builds on Hyperliquid’s permissionless ethos, similar to how Uniswap allows anyone to add liquidity pools. It’s positioning Hyperliquid as a go-to for tokenized real-world assets (RWAs) like equities, competing with centralized exchanges.
Launched around November 19, 2025, with immediate activation on key markets. Community feedback on X highlights the “near-zero” fees as a game-changer for high-frequency traders.
Hyperliquid Improvement Proposal 3 (HIP-3), represents a pivotal upgrade to the Hyperliquid protocol, enabling permissionless deployment of perpetual futures markets (perps) directly on its HyperCore infrastructure.
This shifts Hyperliquid from a validator-curated exchange to a fully decentralized financial layer where builders — anyone staking sufficient HYPE tokens — can launch and manage their own perp DEXs without centralized approval.
The proposal builds on prior HIPs (e.g., HIP-1 for native token standards and HIP-2 for hyperliquidity) by focusing on perpetuals, fostering innovation in tokenized assets like equities, commodities, and collectibles.
HIP-3’s core ethos is to democratize market creation while incorporating safeguards like staking bonds and slashing mechanisms to prevent spam or low-quality deployments. It integrates with HyperEVM for smart contract compatibility and supports open interest limits to maintain system stability.
HIP-3 has driven significant HYPE staking demand and early deployments, with trading volumes exceeding $300 billion monthly across the platform. Prior to HIP-3, market listings were controlled by validators through governance, limiting speed and diversity.
HIP-3 removes gatekeepers, allowing rapid launches of niche markets like tokenized stocks or RWAs to boost liquidity and user choice. By enabling builders to earn 50% of fees, it incentivizes high-quality deployments, positioning Hyperliquid as the “AWS of liquidity” for on-chain finance.
Temporary slashing rules ensure deployers maintain oracle accuracy and market integrity, with plans to phase them out as tooling matures. Creates buy-side pressure on HYPE by locking capital in stakes, potentially reducing circulating supply and supporting token value HYPE up ~13% post-activation to ~$42.
Deploy up to 3 assets without auctions, ideal for bootstrapping new DEXs. Additional assets require winning a shared Dutch auction same params as HIP-1: frequency-based, minimum price floors. Auctions are cross-DEX to fairly allocate slots.
Set parameters like leverage limits, oracles, fee structures, and collateral. Optionally integrate multisig/DAO for governance. Markets go live on HyperCore. Deployers handle operations; users trade via compatible frontends (e.g., Phantom wallet integration).
Deployer gets 50% of fees; Hyperliquid takes the other 50%. User fees are 2x standard rates ~0.09% taker vs. 0.045% to balance this, but include discounts for staking, referrals, and aligned collateral.
Validators can slash stakes for oracle downtime or manipulation; quote assets exempt for future migration possible. Prevent over-leveraging; adjustable per market. HIP-3 includes bug bounties and frontend checks for security.
No Immediate User Changes: Existing markets unaffected; new HIP-3 perps appear in updated interfaces. Hyperliquid rolled out Growth Mode for HIP-3 markets, particularly equities, slashing fees by 90%+ taker fees to ~0.0045-0.009% to accelerate liquidity bootstrapping.
This optional toggle per asset reduces slippage and attracts high-frequency traders, creating a “flywheel” of volume growth. Early adopters include Hyperion for tokenized treasuries and Trove with over $10 billion in liquidations handled during the October market flush showcasing resilience.
HIP-3 positions Hyperliquid to rival centralized giants like Binance by enabling diverse, on-chain perps for non-crypto assets, potentially flipping market share through composability. It boosts HYPE utility staking demand ~$19-22M per DEX and ecosystem growth, with projections of $1B+ annualized revenue.
For builders, it’s a revenue opportunity; for traders, more markets with low barriers. If you’re trading on Hyperliquid, this is a great time to explore new HIP-3 listings.
