What is Hyperliquid?
Summary
Hyperliquid is a blockchain network with on-chain order books for trading. HyperCore handles trading and staking, while HyperEVM runs apps. HYPE supports staking and pays fees in HyperEVM.
- HyperCore records orders and trades on-chain, including perpetual futures.
- HyperEVM hosts apps; HYPE has staking and fee roles that differ from the assets being traded.
- Virtune Hyperliquid ETP holds HYPE as collateral and does not stake it.
A trading venue built into a blockchain
Hyperliquid runs order books on its own network. A trader can place an order to buy or sell an asset, and orders and executions are recorded on-chain1. HyperCore handles spot trading and perpetual futures. Perpetual futures are derivatives that may be traded with leverage, which can amplify losses as well as gains.
The order book distinguishes Hyperliquid from an app whose matching and trading record live only in the app operator's system. Solana can host trading apps, while Hyperliquid builds order books into its own network. HyperEVM also lets developers run other applications2 on the network. Trading on HyperCore and building an app on HyperEVM are related uses of the same infrastructure, but they are not the same activity.
What is HYPE used for?
HYPE is the network's own crypto-asset. It can be delegated to validators on HyperCore3 and pays network fees on HyperEVM4. According to the network's rules, staked HYPE can also reduce trading fees5.
Some trading fees flow to a fund that converts them to HYPE5 and removes that HYPE from circulation. This links trading activity to the asset's supply, but the amount depends on fee flows and the rules in force. It does not make HYPE's price a direct measure of trading volume.
HYPE directly or through an ETP
Direct HYPE can be used in network functions, including staking. Virtune Hyperliquid ETP instead gives HYPE price exposure through an exchange-traded security. It is physically backed with HYPE held as collateral6. The holder owns the security, not HYPE in a personal wallet. The product does not stake HYPE, so it does not pass through network staking rewards or trading-fee discounts.
The product is listed on Xetra, Nasdaq Stockholm, Nasdaq Helsinki and the Warsaw Stock Exchange.
Costs when buying Virtune Hyperliquid ETP
| Cost | Charged by | When |
|---|---|---|
| Brokerage commission | Broker | On every purchase and sale |
| Difference between bid and ask price | Market | On every trade |
| Management fee, 0.95% per year | Issuer | Ongoing, from the product's value |
| Currency conversion | Broker, if applicable | If the product trades in another currency |
Risks to understand
HYPE's price can change sharply. Trading derivatives on Hyperliquid has risks distinct from holding HYPE; leverage can magnify a trader's loss. The ETP carries HYPE price risk plus issuer, custody and exchange-trading risks. Physical backing does not protect against price falls. Crypto-assets can lose substantial value7.
Related product
Sources
- Hyperliquid: Hyperliquid 101 for non-crypto audiences
- Hyperliquid: About Hyperliquid
- Hyperliquid: Staking
- Hyperliquid: HyperEVM
- Hyperliquid: Fees
- Virtune Investor Relations: Collateralization Methodology
- EBA, EIOPA and ESMA (the European Supervisory Authorities): EU financial regulators warn consumers on the risks of crypto-assets
