- Hyperliquid’s self-funding approach led to decentralized growth and $633M in TVL.
- HYPE token surged 1,250%, driven by Hyperliquid’s focus on user value and decentralization.
- Rejecting VC funding allowed Hyperliquid to focus on its decentralized vision and mission.
Decentralized exchange (DEX) Hyperliquid has quickly risen to prominence in the cryptocurrency industry, particularly within the DeFi sector, with its high-performance Layer-1 blockchain. According to DefiLlama, Hyperliquid’s total value locked (TVL) has exceeded $633 million, and its native HYPE token price has also increased by more than 1,250% in a year.
Jeff Yan, the founder of Hyperliquid, stressed that despite the success, the project remained self-funded with no venture capitalist funding. In a recent podcast interview, Yan gave some insight into the decision to avoid traditional venture capital funding and how it fits with the platform’s vision.
Hyperliquid’s Path to Success
The prominence of Hyperliquid has been remarkable. With a small team of only 11 people, the platform has already secured more than 75% of the decentralized perpetual market share. According to Yan, traditional venture capital (VC) tends to create an “illusion of progress” through the inflation of valuations, which does not necessarily mean that there is real growth. “Real progress is when users actually derive value from what you’re building,” Yan said.
He pointed out that venture capital financing often leads to short-term thinking, which contrasts with the long-term success that Hyperliquid seeks. “I was never really doing it for money,” Yan said, highlighting that he was aiming to create something valuable to the world. Being self-funded, Hyperliquid did not experience the same pressure of fundraising rounds and thus focused on making the protocol user-friendly and decentralized.
The Benefits of Self-Funding: Hyperliquid’s Decentralized Vision
The choice not to accept venture capital was closely connected to Hyperliquid’s values. Yan stated that the platform’s success was not focused on maximizing profit but on the redefinition of finance through a decentralized model. Unlike most other projects, which fundraise rounds to scale fast, Hyperliquid focuses on user experience and decentralized ownership. “The idea of raising millions from VCs felt fake to me,” Yan remarked.
Instead of seeking venture capital, Hyperliquid was built to give control back to its users without relying on external investors who might prioritize short-term profits.
The rejection of VC also extended to the decision not to list the HYPE token on centralized exchanges. “If some platform wants to list us, great. If not, even better — users come directly to us,” Yan explained. This approach enabled Hyperliquid to keep all network activity within its protocol, uphold its decentralized principles, and focus on building a robust community-driven ecosystem.
The success of Hyperliquid can also be attributed to its protocol-owned liquidity structure, in which anyone is free to deposit to the system, but no single entity has operational control. According to Yan, this is essential to prevent the internal conflict of interest that is usually evident in centralized exchanges.
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How Hyperliquid Plans to Lead in the DeFi Space
Hyperliquid’s development strategy emphasizes decentralization. Yan pointed out that the protocol has remained self-governed, which allows any participant to interact with the platform without centralized control. He stressed that this model helps build trust within the community and ensures the platform’s resilience and adaptability over time.
With a market cap of over $14.5 billion and growing adoption, Hyperliquid’s future underscores the importance of staying committed to decentralization principles. “We don’t care about what’s going on with the rest of the market. We’re just focused on our mission,” Yan said, reaffirming with the platform’s long-term vision and user-driven growth.
