Hyperliquid Revolutionizes DeFi with Composability and Shared Liquidity

The concept that liquidity breeds liquidity is being taken to new heights by Hyperliquid, a decentralized exchange that has become the go-to platform for traders seeking to engage with perpetual futures, also known as 'perps'. Founded by Harvard alumni Jeff Yan and a pseudonymous developer known as iliensinc, Hyperliquid has been making waves in the DeFi space since its launch in 2023. The platform's innovative approach to composability, a concept that allows permissionless smart contracts to interlock like LEGO blocks, is transforming the way tokenized financial products are created. Hyperliquid's Ethereum-compatible HyperEVM is directly connected to its high-performance HyperCore blockchain, enabling other applications to build upon the platform's shared liquidity. This means that wallets, exchanges, and other services can seamlessly integrate with Hyperliquid, leveraging its liquidity and trading capabilities without having to fragment their own resources. As a result, liquidity is deepening, and the range of assets is expanding, driven by the network effects of hundreds of developers, including prominent players like MetaMask, Phantom wallet, and VALR, who are utilizing Hyperliquid's 'builder codes'. These codes have generated approximately $90 million in revenue, according to Flowscan. The platform's growing popularity is evident in the praise it has received from its users. Hyunsu Jung, CEO of Hyperion DeFi, has likened Hyperliquid to 'the AWS for finance', highlighting its role as a layer-one blockchain infrastructure that provides liquidity and execution services. Similar to AWS, Hyperliquid allows builders to own their users and control the user interface, while providing the underlying liquidity and execution. This enables builder code integrators to charge fees on the notional size of their users' trades without having to develop and maintain the backend infrastructure. For apps like MetaMask, integrating with Hyperliquid's EVM module has been a natural fit. Since October 2025, MetaMask has offered its users self-custodial access to perps directly from the wallet, streamlining fund transfers and allowing users to trade with the tokens they already hold. Matthieu Saint Olive, Staff Product Manager at MetaMask, has praised Hyperliquid's order matching capabilities, 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. Looking ahead, the potential for cross-venue arbitrage is significant, particularly when major players like Robinhood, Coinbase, and Intercontinental Exchange enter the perps market. According to Jung, this will create opportunities for more organic funding rate mechanisms, driven by non-toxic flow from retail users.