BeaconWhat Is Hyperliquid?
Hyperliquid is a decentralized exchange (DEX) for trading perpetual futures and spot assets. What sets it apart from other DEXs is that it runs on its own purpose-built Layer 1 blockchain and uses a fully on-chain order book - the same trading model used by traditional exchanges like Nasdaq or the CME, but deployed entirely on-chain with transparent, verifiable execution.
Most decentralized exchanges use automated market makers (AMMs) - liquidity pools where prices are determined by mathematical formulas. While AMMs democratized DeFi trading, they come with limitations: higher slippage, impermanent loss for liquidity providers, and less efficient price discovery. Hyperliquid's order book model addresses these issues by matching buy and sell orders directly, resulting in tighter spreads and better execution for traders.
Since its launch, Hyperliquid has rapidly grown to become one of the highest-volume perpetual futures platforms in all of crypto - decentralized or centralized. It regularly processes billions of dollars in daily trading volume across hundreds of asset pairs, which you can explore on our markets page.
Key Features: L1, Order Book, and Self-Custody
Hyperliquid's custom Layer 1 blockchain is designed specifically for high-performance trading. It achieves sub-second transaction finality - meaning your orders are confirmed and on-chain in under a second. This is critical for trading, where speed matters. The L1 can handle thousands of transactions per second, supporting the throughput required for an active trading platform without gas fee spikes or network congestion.
The on-chain order book is Hyperliquid's most distinctive feature. Every limit order, market order, cancellation, and fill is recorded on-chain. This provides full transparency - you can verify that the exchange is not front-running orders, manipulating prices, or engaging in any unfair practices. The order book operates with the same matching engine logic as centralized exchanges, prioritizing price-time priority.
Self-custody means you retain control of your funds at all times. Unlike centralized exchanges where you deposit funds into the exchange's wallet, on Hyperliquid your USDC remains in your on-chain account. You can withdraw at any time without permission. This eliminates counterparty risk - the risk that the exchange could be hacked, freeze your funds, or go bankrupt. For traders who value sovereignty over their capital, this is a fundamental advantage. Learn more about the privacy benefits in our no-KYC trading guide.
Getting Started with Hyperliquid
Getting started on Hyperliquid is straightforward. First, you need a compatible wallet - MetaMask, Rabby, or any EVM-compatible wallet. Connect your wallet to the Hyperliquid interface and you are ready to begin. No email registration, no identity verification, no waiting periods. This is one of the key advantages of decentralized trading.
Next, you need to deposit USDC. Hyperliquid uses USDC as its settlement currency for all perpetual futures trades. You bridge USDC from Arbitrum (an Ethereum Layer 2 network) to Hyperliquid's L1. If you have USDC on other chains, you will need to bridge it to Arbitrum first using a cross-chain bridge. The deposit process typically takes just a few minutes.
Once your USDC is deposited, you can trade any available perpetual futures market. Select your asset, choose your leverage, set your order type (limit or market), and execute. Hyperliquid supports the full range of order types that experienced traders expect: limit orders, market orders, stop-loss orders, take-profit orders, and more. Use our trading tools to plan your positions before you trade.
HIP-3 Assets and the Spot Ecosystem
Hyperliquid Improvement Proposal 3 (HIP-3) introduced a framework for permissionless spot asset listing on Hyperliquid. Through HIP-3, any project or community can list a spot token on the platform through an auction process. Once listed, these tokens can be traded on Hyperliquid's spot order book with the same high performance and transparency as the perpetual futures markets.
HIP-3 assets include native Hyperliquid ecosystem tokens as well as bridged versions of popular tokens from other chains. The spot market on Hyperliquid has grown rapidly, with new tokens regularly being listed through the auction process. This creates a vibrant ecosystem where new projects can access deep liquidity and professional-grade trading infrastructure.
For traders, HIP-3 means access to a growing universe of assets beyond just perpetual futures. You can trade spot tokens, hold them in your on-chain account, and use them as part of broader trading strategies. The combination of spot and perpetual futures on a single platform enables advanced strategies like basis trading, hedging, and cross-market arbitrage.
Trading on Hyperliquid with Beacon
Beacon provides a comprehensive trading interface for Hyperliquid that enhances the trading experience with advanced charting, real-time market data, and powerful analytics. Beacon aggregates data from all Hyperliquid markets - prices, volumes, open interest, funding rates - and presents it in an easy-to-read format designed for active traders.
Beyond market data, Beacon offers a suite of free trading tools specifically designed for Hyperliquid traders. Calculate your liquidation price before entering a leveraged position. Estimate your profit and loss for any trade scenario. Determine optimal position sizes based on your risk tolerance. These tools help you trade with more confidence and discipline.
Whether you are new to Hyperliquid or an experienced trader, Beacon's tools and data help you make better-informed decisions. Browse all available markets on the markets page, learn the fundamentals of perpetual futures, and use the calculators to plan every trade before execution.