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Key takeaways
What is HIP-3?
The Hyperliquide-3 Enhancement Proposal allows for the unauthorized deployment of new perpetual swap markets. This is an ongoing initiative deployed by the manufacturer.
What will be the impact on HYPE prices?
Over time, the latest upgrade is expected to attract new traders and market makers, as well as new markets. This, in turn, would lead to greater demand for HYPE.
Popular decentralized on-chain exchange and blockchain L1 Hyperliquid has launched a new upgrade to its HIP-3 (Hyperliquid Improvement Proposal).
This upgrade is called HIP-3 Growth Mode, designed to help attract business to new markets. This was announced on November 19.
The upgrade comes a month after the launch of HIP-3, which allowed anyone to create a perpetual futures market on the network, provided they had 500,000 Hyperliquid (HYPE) tokens.
Upgrading will reduce overall fees by 90% or more when Growth Mode is active. Volume discounts and contributions will also be 90% lower.
Growth mode can be enabled for each asset, without authorization.
The usual taker fee of 0.045% on major markets will increase to 0.0045%-0.009%. The highest volume and stake levels will see even lower fees, from 0.00144% to 0.00288%.
Markets in growth mode cannot include Bitcoin or similar markets, or any other existing markets, to avoid “parasitic volume”.
ETFs, crypto indices or other crypto baskets will also not be eligible. Validators can vote to turn off growth mode for any market they believe is breaking the rules.
Reduced hyperliquid fees to boost new markets
Source: Hyperliquid Statistics
Hyperliquid statistics have shown an increasing number of daily unique users over the past year.
This steady growth was also evident in the rapid explosion of Open Interest since March, although OI has collapsed noticeably since the 10/10 crash.
Some Crypto Twitter users have been quick to embrace HIP-3 and the recent upgrade as a huge positive for the market.
One user highlighted the natural appeal of the on-chain Hyperliquid DEX, accessible from anywhere and requiring no KYC.
This power-up meant “you’re not optimistic enough about HIP-3”, as another user put it.
Another message read,
“It’s a turbo-booster for innovation on the fastest L1 for derivatives. We’re talking 5-10x lower costs than traditional chains, tapping into wild assets that validators have never touched: real-world yields, exotic commodities, tokenized treasures on STEROIDS. Deployers, prepare to flood the chain with alpha markets. Traders, prepare for volume explosions and very high spreads. purposes.”
The impact on HYPE and HYPE holders is also expected to be bullish. The token traded in a range of $36.5 to $43.3 in November.
Since May, most of the price action has been limited to the $32.5 to $50 range.
