Hyperliquid, a decentralized perpetuals exchange, achieved around $330 billion in trading volume in July 2025, briefly surpassing Robinhood. The exchange, operational on its custom layer 1, features a split-chain design with HyperCore managing on-chain order books and liquidations, and HyperEVM enabling smart contracts. Hyperliquid’s latency is remarkable, achieving a median trade latency of just 0.2 seconds. Its rapid growth is attributed to a lean team of only 11 employees, self-funding, selective hiring, and quick incident responses. Core mechanisms like the Hyperliquidity Provider vault and Assistance Fund create a feedback loop that supports user engagement and aligns incentives among traders and market makers. Recent integration with Phantom Wallet further boosted user adoption. However, critiques have emerged regarding validator centralization, operational risks during outages, and the platform's significant market share, which raises questions about systemic impacts during liquidity shifts. Overall, Hyperliquid's execution-first approach, incentive models, and community-focused strategies have driven its remarkable success in a competitive DeFi landscape.

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