Hyper is on fire and may become the on-chain BN!

The on-chain decentralized exchange Hyperliquid is booming, with its platform token's diluted market capitalization surpassing $30 billion!

Why has $DYDX $UNI $DODO been oscillating and generating various positive news, resulting in a slight increase over three to four years, while the newly emerged dark horse $hype has a high market cap just one month after launch? I summarized four points.

1. No transaction fees:

Hyperliquid adopts a no-fee trading model, where users do not need to pay trading fees when placing orders—only a small fee is required for deposits and withdrawals.

2. Fast trading:

The platform uses a custom consensus mechanism called HyperBFT to process a large number of orders with very low latency. Most trades are completed within 0.2 seconds, ensuring completion within 0.9 seconds even during busy periods. Additionally, the system can handle up to 100,000 orders per second, and more orders can be processed after future updates.

3. Token listing mechanism:

Hyper is different from ordinary exchanges; every token listed rises in price as soon as it opens!

This is thanks to the Dutch auction system. During this auction process, token creators bid for trading codes, with prices starting high and gradually decreasing over 31 hours. This method ensures a fair and transparent bidding and listing environment, maintaining reasonable costs and regulating the pace of newly listed tokens. Hyperliquid allows only about 280 new tokens to be listed each year, prioritizing quality and preventing the market from being flooded with low-quality projects.

4. Pure on-chain order book:

Currently, mainstream exchanges use “off-chain order books,” which gives the exchanges themselves an “absolute advantage.” They can front-run your trades, reject orders, impose risk controls, and profit from users in various ways. For example:

In 2022, Cointelegraph published an article pointing out that Alameda had an “unfair advantage” on FTX, including faster order execution speeds and that Alameda's positions would never be liquidated (they would not be subject to margin calls).

The issue of “payment for order flow” in the stock market: market makers pay brokers for “order flow.” When you place an order in a securities account, the broker submits your order to the market maker to decide whether to execute it at their quoted price. This is why the market price you buy at can be different from what you see.