đWhatâs next for Hyperliquid?
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GM friends.
Hereâs what Iâll cover today:
đWhatâs next for Hyperliquid?
đ Crypto chart of the week
đď¸ The latest DeFi news
đ Whatâs next for Hyperliquid?
Itâs no exaggeration to say that Hyperliquid has had a huge year.
From its equity perps surpassing its crypto perps markets in volume to HYPE hitting new ATHs earlier this year despite the bear market, it hit several big milestones.
That said, it still has a few major upcoming catalysts on the horizon.
Here are some of the most interesting changes coming to Hyperliquid:
1. AQAv2 activation
On May 14, Hyperliquid announced a new deal with Circle called AQAv2:
In exchange for Hyperliquid adopting USDC as its primary stablecoin asset for trading, Coinbase and Circle have committed to buy and stake HYPE.
Furthermore, 90% of the yield generated by the USDC reserves on Hyperliquid will start being allocated to HYPE token buybacks.
However, AQAv2 yield accrual doesnât start until Aug. 26, 2026, with the first payment to the Hyperliquid Assistance Fund being made on October 3, 2026.
So there are 2 weeks left till Hyperliquid actually starts making money from AQAv2.
Why is this such a big deal?
Because Hyperliquid has $6b in USDC user deposits at the time of writing.
At a 90% revenue share rate and based on USDCâs current revenue numbers, AQAv2 is expected to increase Hyperliquidâs annual revenue by a whopping ~$162 million.
So it will represent a massive new income stream for the exchange (which will be used for HYPE buybacks), as its current annualized revenue is ~$463 million.
2. HIP-3 fees will become adjustable
As I mentioned before, the trading volume of Hyperliquidâs HIP-3 equity perps markets has recently surpassed the volume of its crypto perps.
However, most HIP-3 equity perps markets have 90% lower trading fees than crypto markets on Hyperliquid, thanks to Hyperliquidâs HIP-3 Growth Mode program.
So while lower fees are certainly good for traders, this also means that Hyperliquid isn't making much money from HIP-3 equity perps yet.
However, this could change soon.
I say this because Jeff, the founder of Hyperliquid, recently announced that, with the next network upgrade, HIP-3 market deployers (like Trade [XYZ]) will be able to increase the trading fees on their HIP-3 markets by up to 30x.
(Currently, the trading fees for markets in Growth Mode are fixed at very low levels)
It would obviously be a bad idea for HIP-3 deployers to suddenly increase the fees across all HIP-3 markets by 30x overnight, as many traders would just leave. But I think that for certain markets, such as pre-IPO perps, trading fees could be increased several times without necessarily reducing the trading volume.
And obviously, the advantage of doing that is that higher trading fees would lead to higher Hyperliquid revenue and more HYPE token buybacks.
So I expect this upgrade to also positively impact Hyperliquidâs revenue.
3. The deployment of HIP-4 markets will be permissionless
To be frank, despite the massive initial hype around the HIP-4 markets, once they launched, they didnât get much traction.
For those unfamiliar, HIP-4 markets are essentially Hyperliquidâs version of prediction markets, also known as outcome markets.
I think a main reason for their slow growth is that there are only 5 HIP-4 markets available to trade on Hyperliquid right now, while competing platforms like Polymarket have thousands of prediction markets.
But the Hyperliquid team announced that the deployment of new HIP-4 markets will soon become permissionless, which will hopefully lead to a big increase in the total number of markets and give traders more prediction markets to trade.
The upgrade that will enable this is live on testnet, and I expect it to go live on the mainnet within 1-2 months. In fact, there are already projects like Outcome that have announced plans to deploy custom HIP-4 markets once it becomes possible.
If things go well and HIP-4 markets are successful, Hyperliquid will be one step closer to becoming the house of all finance, as its team originally envisioned.
The next few months will certainly be big for Hyperliquid with so many upcoming catalysts, so I thought it was worth covering whatâs next for the project.
Iâm rooting for it to succeed, as I feel like itâs one of the few big projects whose team has always stayed aligned with its community.
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Chart of the week
Tokenized equities surged in popularity this year
Crypto meme of the weekđ
The latest developments in DeFi
EtherFi introduced ETHFI buybacks and stock trading
Hyperliquid is lobbying US regulators for a legal path to expand to the US
Jupiter launched Jupiter Lend v2 on Solana, which is powered by Fluid tech
Pendle launched the Pendle USDC Vault on Morpho with incentives for lenders
Lighter announced its new points program on Robinhood Chain
Vitalik Buterin released an updated Ethereum roadmap prioritizing quantum resistance and privacy
TradeXYZ started buying back $HYPE with 12% of its revenue
xStocks launched tokenized equities on Hyperliquid
Neutrl paused protocol redemptions with no explanation
Base announced it will implement native account abstraction in September
Trezor revealed that its recent customer data was exposed in a data breach
US Senate delayed the Clarity Act vote until September
FX100, a perps DEX with 15 minutes of liquidation protection, went live on testnet
Solstice opened the claiming portal for its Season 2 airdrop
LayerZero announced a new 0.02% fee for bridging OFT tokens via Stargate
Thatâs all for this week!
Until next time,
The DeFi Investor
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