The Hyper Foundation has announced that Hyperliquid users will get a native token HYPE in preparation for the upcoming main net launch of the HyperEVM.

It would function as the core utility token within the proof-of-stake consensus of HyperBFT and HyperEVM, among other development milestones that can be achieved over time.

Hyperliquid HYPE Token Powers HyperEVM

The newly-formed Hyper Foundation announced that Hyperliquid users will soon become owners of a new native token, HYPE. The community eagerly waits for the main net release of the HyperEVM. This is one of the foundation’s most crucial milestones. This token will lie at the heart of the proof-of-stake consensus mechanism called HyperBFT. It will also power the HyperEVM and further developments in the ecosystem.

The Hyper Foundation has been established to support the growth of the Hyperliquid blockchain and ecosystem. Today, the flagship application on Hyperliquid is the premier decentralised exchange, part of the foundation for a new financial system. Hyperliquid’s order books already… pic.twitter.com/EF6AdfI1Qz

— Hyper Foundation (@HyperFND) October 14, 2024

Currently, the distribution channels fall under two headings. One are the users who qualify for eligibility can select the initial distribution for HYPE tokens. Second are users who independently acquire a Hypurr NFT in celebration of the launch.

Specific details of the HYPE token airdrop, or “Genesis Event,” will be released later. Lately, daily transaction volumes have surpassed $1 billion, possibly due to a points reward program that is determining the upcoming token distribution. It seems October is a good time for airdrops since recently, it was announced that the Elon Musk-inspired, popular tap-to-earn game, X Empire airdrop and token launch is set for this month’s end. 

Over the past months, the exchange has consistently been above $1 billion in daily trading volume, thus firmly cementing its position within the decentralized derivatives market. It enables users to trade in perpetual derivatives and cryptocurrencies with leverage, offering higher buying power.

The core infrastructure is powered by its low-latency proprietary trading engine, which enables fast execution of an order on the Hyperliquid Chain. This feature is especially helpful for high-frequency traders who need to respond promptly to market fluctuations. It is a non-custodial protocol where users retain control of their assets via their crypto wallets.

Decentralized Perpetual Swaps Gain Popularity

It focusses on perpetual swaps or perps, as part of a broader trend that sees decentralized exchanges offer superior. This will allow traders to hold positions indefinitely, provided they have adequate collateral.

Initially gaining popularity through CEXes such as BitMex in 2016, perps have since become a staple in the DeFi space and a driver of interest in platforms like this DEX.

While the exchange has seen significant growth in trading volume, it needs more to translate to increased team profits directly. According to the platform’s documentation, the community gets all fees .

Specifically, fees are going toward the Hyperliquid Pool (HLP) and the insurance fund. this is to ensure that the ecosystem benefits from the trading activity rather than the core team. This approach reinforces the platform’s decentralized and community-oriented ethos, aiming to prioritize user interests over traditional profit models.

A Layer 1 Platform for Crypto Derivatives

Hyperliquid is a decentralized trading platform that enables users to trade perpetual derivatives by pooling liquidity from multiple sources. This offers better trading opportunities and deeper liquidity.

The platform supports leveraged trading, allowing users to borrow funds to amplify their trading positions on various cryptocurrencies.

It operates as a Layer 1 application-specific blockchain, featuring an ecosystem of native tokens like Purr, Points. These serve different purposes within the platform’s economy and reward system.

The post Hyperliquid Announces HYPE Token Launch Ahead HyperEVM Release appeared first on CoinGape.

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Filed under: News - @ October 14, 2024 5:26 pm