Understanding HIP-1: Hyperliquid spot deployments
HIP-1 is the native token standard on the Hyperliquid L1; it is similar to the ERC-20 standard for EVMs. Once the HyperEVM is live, the spot deployer can link their native spot asset to a corresponding ERC-20 contract deployed to the EVM.
HIP-1 lets you deploy a spot token together with an onchain order book. Creating a token involves the following inputs:
- The ticker and name
- The smallest unit
- Max supply
- Hyperliquidity range (More on that later)
- Optional: any initial distribution to individual addresses or existing tokens (e.g., PURR)
There is a Dutch auction every 31 hours, and the winner can deploy a token. You can see the token contract in the explorer, e.g., app.hyperliquid.xyz/explorer/token…
Understanding HIP-2: Hyperliquidity
HIP-1 sets up a token standard, but we need good liquidity (easy buying/selling) for these tokens. HIP-2 (Hyperliquidity) aims to democratize this process. Hyperliquidity is inspired by Uniswap, but works with the native order book for more advanced trading.
Setting up Hyperliquidity involves the following inputs: starting price, size, and number of orders for the liquidity range. Liquidity is seeded with either the token or USDC. Hyperliquidity updates every 3 seconds and ensures a 0.3% spread between its orders. Other users can also provide liquidity (e.g., MM) on the order book, which makes the market more dynamic and accessible. This liquidity is forever locked and available within the defined range.
Together, HIP-1 and HIP-2 enable users to deploy their own spot token with built-in liquidity on the Hyperliquid L1. If you are curious to try things out, you can test deploy a token to understand the full process here: app.hyperliquid-testnet.xyz/deploySpot
People PvPing on @HyperliquidX spot. Trolls calling every spot token rug but launches their own rug.
The bigger picture is 100x. Everything becomes clear when the new money comes in.
The $PURR token soared 23% today as traders continue to reap the rewards of @HyperliquidX's latest points program.
Hyperliquid also soared past dYdX and is now 2nd among derivatives DEXs with $530M in TVL.
What’s going on:
thedefiant.io/news/defi/hype…