hype

BitMEX co-founder Arthur Hayes has raised alarms, warning that major centralized exchanges offering zero-fee trading are attempting to squeeze decentralized exchange Hyperliquid out of the market.
In an interview shared by journalist Laura Shin, Hayes explained that Hyperliquid’s business model depends on trading fees, which are used to fund buybacks of its native token HYPE.
“If HYPE doesn’t make money and can’t buy back tokens, all that trading volume disappears,” Hayes said.
He claims centralized exchanges temporarily cut fees to weaken Hyperliquid — only to raise them again once they regain market share.

Hyperliquid’s Fee-Based Model Under Pressure
Launched in 2023, Hyperliquid operates on its own Layer-1 blockchain and enables leveraged perpetual futures trading. Its structure relies on transparent fees — 0.025% for takers and a 0.002% rebate for makers. These fees fund HYPE token buybacks, creating long-term value for holders.
However, Hayes warned that if revenue streams dry up, the HYPE ecosystem could collapse.
“Without fees, there’s no buyback — and no reason for volume to stay.”

Rising Despite Competition
Despite the mounting pressure, Hyperliquid remains one of the most active decentralized exchanges in the industry.
Recent data shows:

🔹 $9.49 billion in 24-hour trading volume (+22.8% daily growth)

🔹 $9.28 billion in open interest across 191 trading pairs

🔹 All-time high open interest of $14.97 billion on October 13 (down 37% since then)
While centralized giants like Binance, Bybit, and OKX handle between $25–90 billion daily, Hyperliquid continues to attract traders who value transparency, control, and low fees.

Traders Defend Hyperliquid: “It’s More Than Just Fees”
Many in the community dismissed Hayes’ warning.

Trader Permacope wrote:
“Even with zero-fee options elsewhere, people simply prefer the Hyperliquid experience.”
Another user pointed out that Hyperliquid’s fees are already so low that centralized exchanges would lose money trying to undercut them — an unsustainable tactic in the long run.

Alternative Revenue Models — Robinhood as Inspiration?
Commentator “Crypto Tax Made Easy” noted that so-called zero-fee exchanges still generate profits by charging market makers and professional traders, much like Robinhood’s payment-for-order-flow model.
They suggested that Hyperliquid could adopt a similar hybrid approach without compromising decentralization, though it might stir debate within its community.

DeFi Moon: “Hyperliquid’s Strength Lies in Liquidity, Not Fees”
Analyst DeFi Moon offered a different perspective:
“For pro traders, liquidity, execution speed, and reliability matter more than a few basis points in fees.”
He added that Hyperliquid’s ability to stay stable during market volatility has made it a trusted platform for large traders — a rare quality in DeFi.

The Bottom Line
Arthur Hayes may see a threat where others see an opportunity.

While centralized exchanges try to lure users with temporary zero-fee deals, Hyperliquid continues to rely on its technology, transparency, and loyal community.
The real question is:

Can a fee-driven, decentralized model survive in a market where big players can afford to lose billions just to dominate?



#Hyperliquid , #ArthurHayes , #hype , #defi , #CryptoCommunity

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