Hyperliquid to Activate HIP-3 to Enable Open Perp Market Creation
- HIP-3 allows builders to create and manage perpetual trading markets with full autonomy.
- Community members can stake HYPE tokens to gain direct control of new DEX listings.
- This move alters how DeFi is formed and promotes self-managed, decentralized trading.
Hyperliquid is set to activate HIP-3, a protocol upgrade enabling the permissionless creation of perpetual futures markets. According to an announcement made in the project’s Discord channel, the network upgrade on Oct. 13 includes the activation of HIP-3. A Hyperliquid administrator confirmed the change, stating, “HIP-3 will be enabled during this network upgrade. There is no immediate change for users. Deployers meeting the on-chain requirements will be able to deploy perps for trading once ready.”
The upgrade follows a previously disclosed document describing HIP-3 (Hyperliquid Improvement Proposal 3) as a “key milestone toward fully decentralizing the perp listing process.” The document explains that HIP-3 supports builder-deployed perpetuals and introduces a permissionless market model for traders and developers.
From Centralized Control to Community Governance
HIP-3 represents a structural shift in market autonomy. It transfers control from a central listing team to the wider community. Anyone staking HYPE tokens can deploy a perpetual decentralized exchange (DEX), manage its order books, set fee structures, and determine leverage limits.
Deployers will participate in 31-hour Dutch auctions, paid in HYPE, to gain listing rights for new markets. Once awarded, they can configure trading parameters and collect up to 50% of the base trading fees while maintaining market stability.
To ensure integrity, a security bond should be posted by the deployers, which the validators are able to slash in case of misconduct or negligence, even during an unstaking cooldown. This type of structure enables communities to make informed decisions and promotes accountability through the mechanism of validator supervision. Hyperliquid, in its turn, is becoming a platform of platforms, where DEXs are different but interrelated on the basis of a common infrastructure.
Integrating HyperEVM and CoreWriter for Smart Contracts
The HIP-3 structure incorporates HyperEVM, an EVM-compatible execution environment that integrates smart contract logic with the platform’s order-book engine. The system consists of two layers: HyperCore, which enables spot and perpetual trading, and HyperEVM, which controls the execution of smart contracts.
CoreWriter can be used by developers to inject actions directly into HyperCore. This allows orders to be placed, assets to be transferred, or even the management of stakes without the use of middlemen. Introducing CoreWriter is accompanied by a controlled delay that is aimed at preventing front-running and latency arbitrage and thus the provision of fair execution to all participants.
This collaboration between DeFi applications and on-chain derivatives becomes even more empowered, hence allowing protocols to execute market operations in an automated fashion without compromising on either transparency or composability. Furthermore, it opens up the possibility of decentralized governance, where not only smart contracts but also validators work together to provide the system’s security.
Related: Hyperliquid Shows Zero Downtime During Record Crypto Market Crash
A Strong Model for Non-Centralized Derivatives
The activation of HIP-3 occurs after a previous experiment demonstrating the network’s capabilities, during which Hyperliquid processed nearly $10 billion in liquidations over a weekend of intense trading. The scenario was a clear demonstration of the growing need for strong, decentralized infrastructure that can sustain extreme market pressures.
After HIP-3 is operational, users with a stake of 500,000 HYPE and above will be able to create new markets on HyperCore immediately. Nonetheless, the model is associated with new responsibilities. The deployers of the oracle should ensure that it is reliable, adjust the market parameters according to demand, and maintain the oracle accordingly. The validators can impose compliance through transparent and on-chain governance that is in place.
HIP-3 can be the beginning of a new model, one where the community has full control, innovation, and accountability.
