SEDA

Introducing Hyperliquid Day on June 22nd 🐱 🇳🇱 A curated, invite-only gathering for the Hyperliquid ecosystem during @DutchBlockWeek 2026. Hosted by @IMCTrading & @Maven11Capital, with thanks to our sponsors @sedaprotocol & @Dreamcash 🙏 Live Q&A with Jeff. Panels on HIP-3, HIP-4, trading, stablecoins & validators. Apply to attend 👇 luma.com/2doqznyh

What if the biggest bottleneck in on-chain finance isn’t liquidity…but who gets to decide which markets should even exist? For years, new perps markets have been gated with slow processes, and cold starts post-launch. @novadotmarkets is attempting to fix that with a bold new primitive: Conviction Markets. Here's our no-BS 60s breakdown ⤵ --- ➠ The New Markets Problem Most new markets launch with zero organic demand and thin liquidity, Listing decisions still feel centralized and opaque, even on “permissionless” chains like @HyperliquidX. Traders and domain experts who spot opportunities early get no lasting reward and cold starts kill momentum before a market can prove itself. Result? We’re missing 10x more capital markets that should exist on-chain. ---- ➠ Conviction Markets Thesis In a nutshell, conviction markets is a pre-orderbook formation layer: - Creators, early traders, and early LPs build positions to prove demand - Markets are tradable from day one - Once demand/liquidity thresholds are met, the market graduates to full HIP-3 on Hyperliquid L1: ↪ Moves liquidity into the NLP vault ↪ Gets CLOB, @PythNetwork / @sedaprotocol oracles, and pro market making ↪ Creators + early users earn ongoing revenue share from future fees This fixes cold starts and helps surface niche markets from domain experts. --- ➠ Market-Making Engine If you're wondering where's the liquidity come from, then th answer is NLP (Nova Liquidity Provider Vault) but it's not just another vault. NLP is one central vault provides liquidity + market making across Nova HIP-3 markets. Depositors earn: - 70% of trading fees across Nova markets - 80% of market-making PnL Target APY: 12–20% (example: ~$1m daily volume on a $1m vault ≈ 18.6%) This is where Nova stands out. Revenue share is structural and permanent for creators and early capital providers, not a temporary farm. It turns market origination into an equity-like claim on the market’s ongoing success. Vault depositors get the majority of fees + MM PnL across the portfolio, creating a flywheel: more volume → better returns → more deposits → deeper liquidity and $HYPE stakers benefit via backing pools. NLP is using Ergonia (proprietary algo) that automatically allocates capital, captures spreads, optimizes PnL, and “hibernates” low-volume markets. idle capital may be deployed to @Morpho. Launch Parameters (subject to change): - Vault cap: $1m | user cap: $50k - Whitelist/gated access (TG) - Assets: $USDC (USDH is in the docs, but they are winded down) - Withdrawals: instant (0.5% fee) or 3-day (free) - Team retains veto authority to protect vault depositors and prevent governance exploits. Deposits may also add voting power later. this is the liquidity backbone for “guaranteed liquid listings.” --- ➠ Notable Risks - Small initial caps ($1M vault). - Market making algorithm and drawdown risk (not yet proven at scale). - Smart contract + Oracle risks + Hyperliquid L1 + HIP-3 dependency. - Limited public documentation on exact graduation thresholds and creator revenue splits mechanism - Regulatory risk on RWA perps. And most importantly, adoption risk, Nova needs quality proposals and real volume post-graduation to bring in participants + traders. --- ➠ Final Take → 7/10 Nova Markets is executing on a high-signal idea with credibnle execution and tight alignment to Hyperliquid’s strengths. The combination of Conviction Markets (demand discovery + early economics) + professional NLP Vault (liquidity guarantee) + fee redistribution is elegant and addresses real frictions in onchain perps market creation. However, it is still very early, gated access, small caps, incomplete public documentation on exact mechanics/thresholds, and reliance on “soon” phases. I would treat this as a high-risk, high-conviction infrastructure bet rather than a degen farm. NFA. DYOR

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A question from our fireside with @VitalikButerin - on one hand, RWA perps are a great way for decentralized tech to have an impact outside of crypto. On the other hand, they often rely on data sources that are centralized and not verifiable. Thoughts? x.com/Lighter_xyz/st…

3 seconds to summarize @sedaprotocol by @jasperflux