Hyperliquid Revolutionizes DeFi with Composability and Shared Liquidity

The concept of liquidity begetting liquidity is a fundamental principle in the world of finance. Hyperliquid, a decentralized exchange, has become a go-to platform for traders seeking to trade perpetual futures, also known as 'perps.' These blockchain-based derivatives contracts enable users to speculate on asset prices with leverage and no expiration date. Founded by Harvard classmates Jeff Yan and iliensinc, Hyperliquid has been live since the start of 2023 and is now capitalizing on its robust order book by providing firms with the ability to compose with its shared liquidity. This concept, known as composability, is a key aspect of decentralized finance (DeFi) and allows permissionless smart contracts to interlock like building blocks, creating new tokenized financial products. Hyperliquid's Ethereum-compatible HyperEVM is directly connected to its high-performance HyperCore blockchain, enabling other applications to tap into the platform's shared liquidity without fragmenting it. As a result, applications such as wallets or other exchanges can leverage Hyperliquid as a backend to offer perps trading and other services. The more builders that deploy on and integrate with Hyperliquid, the deeper the liquidity, the broader the range of assets, and the greater the network effects. Currently, hundreds of developers, including prominent names like MetaMask, Phantom wallet, and VALR, are utilizing Hyperliquid's 'builder codes,' which have generated approximately $90 million in revenue. The platform's growing user base is enthusiastic about its potential. According to Hyunsu Jung, CEO of Hyperion DeFi, 'Hyperliquid is not just a perpetuals exchange; it's more like the AWS for finance.' Jung views Hyperliquid as a layer-one blockchain infrastructure that provides liquidity and execution, allowing builders to focus on delivering a great user experience. The platform's builder code integrators can charge fees on the notional size of their users' trades without having to develop the backend or maintain liquidity. Sterling Barnett, business development lead at Hyperliquid Labs, notes that 'builder codes enable integrators to focus on what they do best – delivering a great user experience – while Hyperliquid serves as the backend for liquidity and execution.' For apps like MetaMask, which boasts over 100 million users worldwide, integrating with Hyperliquid's EVM module makes perfect sense. Since October 2025, MetaMask has allowed its users to access perps directly from the wallet, streamlining fund transfers and enabling users to trade with the tokens they already hold. Matthieu Saint Olive, Staff Product Manager at MetaMask, highlights the benefits of this integration, stating that 'matching orders is genuinely hard, and Hyperliquid is excellent at it.' By routing orders directly to the Hyperliquid order book, MetaMask Perps offers some of the best liquidity and execution quality available. According to Saint Olive, MetaMask is witnessing growth beyond crypto, with real-world-asset markets expanding from a small slice of perp volume to roughly a quarter of it today. In terms of fees, MetaMask charges a flat 0.1% builder fee, with no hidden spread or execution costs. The company prioritizes transparency, with Saint Olive noting that 'we think that transparency is the real advantage, and we're actively exploring more innovative pricing models.' Another notable example of Hyperliquid's integration is with the South African exchange VALR, which has opted to use Hyperliquid's perps order book for its liquidity requirements. Despite being a large centralized exchange, VALR found it challenging to achieve volume and liquidity with its in-house infrastructure. According to CEO and co-founder Farzam Ehsani, 'perpetual futures on our own books didn't take off as we had hoped they would, predominantly because of the liquidity and volume.' However, by plugging into Hyperliquid's platform, VALR has been able to tap into a vast pool of liquidity and market participants from around the world. Looking ahead, as major players like Robinhood, Coinbase, and Intercontinental Exchange enter the perps market, there will be opportunities for cross-venue arbitrage, according to Jung. This could enable users to maintain positions on multiple platforms, such as Robinhood and Hyperliquid, and capitalize on differences in funding rates.