Author: nairolf

Compiled by: TechFlow

What is HIP-3?

Here is @HyperliquidX’s HIP-3 explained in very simple terms.

HIP-3 allows developers to deploy perpetual contract markets on HyperCore.

To ensure market quality and protect users, deployers must stake 500,000 HYPE. If malicious market manipulation occurs, validators have the right to reduce the deployer's stake.

You should already be familiar with HyperCore, right? It includes the status of margin and matching engine.

Simply put, it is the exchange backend of Hyperliquid.

HIP is short for Improvement Proposals. Simply put, it is how the protocol is changed.

The main purpose of HIP-3 is to allow anyone to deploy a perpetual contract market.

Currently, the process for adding new tokens to perpetual swap exchanges is permissioned.

This means that the core team decides which tokens to add based on demand, trading volume, and other criteria.

HIP-3 allows anyone to list a token of their choice. Yes, literally any token.

However, there are some restrictions. Only one token can be listed every 31 hours. Furthermore, you need to win the right to deploy through a Dutch auction (using HYPE).

You need to pledge 500,000 HYPE and are responsible for setting up the market.

This means choosing an oracle, defining leverage limits, handling settlement logic, and ensuring everything runs securely.

500,000 HYPE This is a security guarantee and also the way the protocol protects itself.

If there is weird manipulation of the market for your token, validators can vote to slash your HYPE.

In short, these HYPEs ensure that the tokens you list are legal.

As a token deployer, you can take 50% of the total market fees. You can even set a custom fee.

In other words, you can earn a portion of the fees from users trading the tokens you list.

HIP-3 allows anyone to list tokens on the Hyperliquid perpetual contract exchange.

To ensure market security, 500,000 HYPE must be pledged, and these pledges may be cut if suspicious behavior occurs.