TraderKoz

[smartestmoney.hl @smartestmoney]

$HYPE OI flushing on each pullback (still around 10/10 levels) while relentless spot TWAPs continue to remove supply.

This spot driven rally is one of the healthiest rallies i’ve seen in years.

SO MUCH HIGHER

Higherliquid.

[smartestmoney.hl @smartestmoney]

If you’re still struggling in this crypto market, do remember that you were handed the blueprints since 2024.

For the last 18 months, I’ve been pounding the table to sell everything into @HyperliquidX and to do everything you can to stack as much $HYPE as possible.

Everything changed in our industry when $HYPE launched and it will continue to attract the most amount of inflows.

We’re growing exponentially across every single vertical that matters: perps market share, RWA perps, AQA powered stablecoin yield, outcomes while operating at 99% net margins.

All of which accrues directly into the most pristine asset in all of crypto.

Hyperliquid.

[smartestmoney.hl @smartestmoney]

Just remember that we will all be buying $HYPE at the prices we deserve.

~Smartestmoney

[Yaugourt.hl @Yaugourt]

Everyone is arguing about $USDH dying. They're missing the point entirely. What happened today is the single most important business move in Hyperliquid's history.

Let me explain. Revenue, liquidity, politics, lobby, and what it means for the USDH vote debate.

Coinbase is now the official treasury deployer of $USDC on Hyperliquid under AQAv2. Circle handles the technical side (CCTP, cross-chain infra). Both are staking hyperliquid:native. Native Markets agreed to sell the USDH brand assets to Coinbase.

$USDH is sunsetting. But the mechanics it pioneered are not. They just got applied to a $4.7B asset instead of a $100M one.

Let's break down why this is a win on every single front.

LIQUIDITY

The biggest complaint from traders and builders for months: fragmentation. $USDH had the alignment but not the liquidity. $USDC had the liquidity but not the alignment. You had to choose.

That choice is gone. One stablecoin. One orderbook per pair. No split liquidity. No confusion for HIP-3 deployers picking a quote asset. No friction for new users bridging in.

$4.7B in USDC on Hyperliquid, 2x year over year. That is the base generating yield now, not $100M.

REVENUE

Under AQAv2, the treasury deployer shares 90% of the reserve yield revenue with the protocol. Run the numbers on the current $USDC supply:

$4.7B at 3.8% interest rate, 90% shared with the Assistance Fund = $160M+ per year flowing directly into HYPE buybacks. That is $440K per day. Every day.

For context, USDH at peak supply was generating a fraction of this on $100M. The AQA model worked. It just needed to be applied at the right scale.

POLITICS AND LOBBYING

This is the angle most people are sleeping on. Coinbase is the largest publicly traded crypto company in the US. They spent over $100M on crypto lobbying and political action in the last cycle. They are the single most powerful voice for crypto regulation in Washington.

The CLARITY Act markup is happening today. Coinbase has been one of its strongest advocates. Having them financially aligned with Hyperliquid, staking HYPE, operating as treasury deployer, is not just a liquidity play. It is a regulatory shield.

Every conversation about "is Hyperliquid a US regulatory risk" just got a lot harder to make when Coinbase is literally staked into the network.

Circle staking 500K HYPE and moving toward becoming a validator. Jeremy Allaire posting "Hyperliquid." That is institutional endorsement at the highest level.

THE USDH QUESTION

"Was USDH a failure?" "Was the vote theater?" "Did Native Markets just flip an asset?"

No. USDH was a weapon. It was a credible threat that proved a protocol can demand yield sharing from stablecoin issuers. Before USDH, Hyperliquid had $5B+ in USDC generating $150-200M/year for Circle and Coinbase. The protocol saw none of it.

USDH launched. The AQA model proved that yield can be redirected onchain, transparently, back to the protocol. It only reached $100M in supply but that was never the point. The point was forcing incumbents to the table.

Basit said it best: the entire lifecycle of USDH from launch to sunset should be studied. Coinbase didn't come to Hyperliquid out of goodwill. They came because USDH proved they would lose the venue if they didn't align.

"But Paxos offered better economics during the vote." Maybe on paper. But 95-100% of a stablecoin that might have also struggled to reach $100M in supply is still less revenue than 90% of $4.7B. The vote was never about picking the best yield split on a small asset. It was about creating the leverage to capture yield on the dominant one.

WHAT THIS MEANS FOR BUILDERS

USDC becomes the canonical quote asset for HIP-4 outcome markets. No more guessing which stablecoin to build around. Hyper Foundation is issuing grants to HIP-3 and HIP-1 deployers who integrated USDH to cover migration costs. Feeless conversions from USDH to USDC during the transition.

For HIP-3 deployers running equity perps, commodity perps, outcome markets: one liquidity pool, one collateral asset, deeper books.

SECOND ORDER EFFECTS

Coinbase operating perps through Hyperliquid via builder codes? Not confirmed, but now structurally possible. Their existing perp product is weak. Hyperliquid's infrastructure is the best in crypto. The incentive alignment is there.

Tether now has a clear path to compete. AQAv2 is an open spec. Any stablecoin issuer can stake 500K HYPE and share yield to become an aligned quote asset. Competition is good.

AQAv2 becomes a blueprint for every other chain. Hyperliquid just proved that a protocol can force the largest stablecoin issuers in crypto to share revenue at the protocol level. No one has done this before.

Hyperliquid.

[jeff.hl @chameleon_jeff]

Excited to see everyone come together for this historic moment. AQAv2 brings the protocol-aligned stablecoin model that @Nativemarkets trail-blazed to USDC with @Coinbase and @Circle's commitment to Hyperliquid. The community no longer has to choose between liquidity and alignment.

Our industry will face adversity as we continue to grow. It gives me hope seeing titans of the industry come together to build for users and bring all of finance onchain.

[jeff.hl @chameleon_jeff]

Thanks @domcooke for spending months on researching and writing this piece. Einstein once said, "If you can't explain it simply, you don't understand it well enough." By that measure, Dom has blown me away with how deeply he came to understand Hyperliquid and what we're all building together.

When someone asks what "housing all of finance" means, I'm proud to point them to this piece. I hope readers appreciate just how much Dom and his team put into their work. It reflects the thoughtful craft that is in Hyperliquid's DNA. Special thanks to @patrick_oshag for taking a bet on Hyperliquid's story.

[Magus @TraderMagus]

If you see this and think its bearish I suggest you go back to the fundamentals of relationship between flows and liquidity

[jeff.hl @chameleon_jeff]

Huge congratulations to TradeXYZ and S&P for this historic partnership. I'm honored that these teams choose to build on Hyperliquid.

Seeing official S&P500 perpetual futures launch exclusively on Hyperliquid is a validation of everyone's past years of hard work: global access to decentralized finance, perpetual futures as 24/7 price discovery, and Hyperliquid upgrading the existing financial stack to house all of finance.

The S&P500 is synonymous with "the market," a single number that captures the essence of the largest economy in the world. Looking forward to tracking the world's most important financial gauge 24/7 on the most liquid permissionless markets.

[trade.xyz @tradexyz]

S&P Dow Jones Indices and trade[XYZ] have joined forces to launch the first official S&P 500 perpetual contract, available exclusively on Hyperliquid.

For 69 years, the S&P 500 has been a defining reference point for global finance. Until now, access to that benchmark has been shaped by market hours, intermediaries, and geography. Today, that changes.

The S&P 500 perp is now available 24/7/365, anchored by the official index data required for deep liquidity and institutional confidence at scale. 

SPDJI helped define modern indexing. They are stewards of an iconic benchmark, the standard against which portfolios across the globe are measured. We are honored to bring that legacy on-chain.

Trade[XYZ] is bringing the world's most iconic assets towards a future of global, continuous markets — a future powered by Hyperliquid.

[MONK @defi_monk]

https://t.co/apshnc9oOr

[Ryan Watkins @RyanWatkins_]

Perps eating global financial markets is the highest conviction thesis I’ve had in my 4 years since starting Syncracy.

If we’re right, the sector could produce $350B+ in value over the next 5 years, with the winning chain becoming one of the largest platforms in global finance.

As shared in our OG Hyperliquid thesis released over a year ago, we believe $HYPE is the fastest horse in this race.

While many skeptics view platforms like Hyperliquid as products of regulatory arbitrage, over time we believe they will come to be understood as a fundamental transformation of the global trading stack.

What was once a fragmented world of brokers, exchanges, clearinghouses, among other intermediaries, is giving way to integrated trading systems that are continuously margined, atomically settled, globally accessible, and permissionless to build on.

The case isn’t just theoretical as early signs of disruption are already visible in the data. In the early months of perps’ “real world asset” expansion they’re already impacting global financial markets — most recently functioning as a price discovery engine on weekends for oil during the Iran conflict.

We believe this is only the beginning and that perps will absorb an increasing share of leveraged directional trading that today lives in retail options, CFDs, and fixed-tenor futures. Even low single-digit penetration of these markets could produce dramatic outcomes for the sector.

In parallel, it remains under-appreciated how quickly DEXs like Hyperliquid have emerged as leaders in equity and commodity perps.

Should DEXs continue scaling these markets, it will accelerate their share gains from the likes of Binance and Coinbase while also positioning them to challenge legacy derivatives venues such as CME, who will struggle to compete due to regulatory and architectural incompatibilities.

Finally, as decentralized venues lead the growth of perps, we believe they will also expand into adjacent categories.

Perps are the hardest product to nail on blockchains and once a blockchain can successfully host perps it naturally starts to aggregate other crypto use cases as a byproduct.

We are already seeing early evidence of this with Hyperliquid’s expansion into spot trading and stablecoins, and soon prediction markets and options. It’s in this sense that perpetual DEXs are also Trojan horses for the financial platform of the future.

——

Enjoyed writing this one with @defi_monk who was the first sell-side analyst to cover Hyperliquid in summer 2024 and among the leading thinkers on the sector.

Hope you all enjoy what is a very detailed and data-driven piece that was a long time in the making.

[Frank Chaparro @fintechfrank]

Hyperliquid in WSJ

[GLC @GLC_Research]

Few Thoughts on HIP-4

HIP-4 prediction markets aren't about dethroning Polymarket or Kalshi, they're about making Hyperliquid more capital efficient and attractive as a whole.

The core value is simple: traders can hedge positions or speculate with calls, puts, or event-based contracts (e.g., a binary market tied to a catalyst that could invalidate a thesis) without ever leaving the platform. No liquidity fragmentation, no separate accounts, just unified margin across every product. The analogy to spot is apt: you don't measure spot's success by comparing its volume to perps.

What @unitxyz really did was improve the overall user experience and strengthen competitive positioning, which lifted the entire blockchain. HIP-4 should work the same way.

Hyperliquid already has what prediction market platforms lack: real trading infrastructure, deep liquidity, and a user base with significant capital. That combination should naturally attract external builders to deploy markets, and as front-ends integrate HIP-4 over time, the experience will improve considerably from what testnet shows today.

Prediction markets alone aren't the most lucrative vertical right now. But layered onto Hyperliquid's existing stack, they contribute to a flywheel: more products, more capital efficiency, more users, more liquidity. That could quietly make Hyperliquid the default venue for this category, not by competing directly, but simply by being the better place to trade everything else already.

So the goal isn't dethroning Polymarket today. But as network effects compound across crypto perps, spot, options, equity and commodity perps, unified margin, lending and borrowing, stablecoin transactions, prediction markets, and beyond, owning the full financial stack and offering every product permissionlessly could very well make that outcome inevitable over time.

Those are quick thoughts, feel free to provide feedback, happy to discuss. Hyperliquid.

[smartestmoney.hl @smartestmoney]

You will own nothing but @HyperliquidX and you will be happy.

[Magnus.hype @0xmagnus]

Bloomberg just used on-chain oil prices as the reference for their iran risk coverage.

Not CME. Not NYMEX. But Hyperliquid.

Price discovery doesn't wait for Monday open anymore.

[G @smartestxyz]

I have been a Hyperliquid User since December 2023 and I’ve always wanted to give something back to the team and especially @chameleon_jeff. He built something so incredible and exciting that I’ll be telling my grandkids about it!

Here is my 59-page research paper about Hyperliquid and why it will become 'The Blockchain to House all Finance'. Since the file is too large to upload directly, I’m sharing the Google Drive link. The attached images show the Table of Contents.

big thank you to @HyperliquidX and @chameleon_jeff

also thanks to @mlmabc for his insane fast research!

(https://t.co/SPEn4dbM1A)

[Magus @TraderMagus]

Unpopular opinion but "Rotating" is holding many of you back

I rebalance my port maybe once per year often less

If you have capital avoid selling & rotating, instead just keep buying more of the winning assets you own

Rotations are great if you are early but if you are late at all will be the death of you

Trigger tax event by selling then park into a shit asset that underperforms because you were late when you could have just sat in BTC

I'll write a full version for if you don't have capital next

[moon @MoonOverlord]

happy $BTC all time high to the 14 people on CT who still own Bitcoin

[apewood @apewoodx]

first time we hit ~$123K in july... everyone excited, pumped. immediately retraced.

second time we hit ~$124k in august... everyone excited, pumped. immediately retraced.

third time we hit ~$125-126k (now)... most are jaded, "worst ath break ever", hoping for a pullback. and hasnt immediately retraced, kind of just chilling around aths