Hyperliquid Revolutionizes DeFi with Composable Liquidity

The concept that liquidity breeds liquidity is being put to the test by Hyperliquid, a decentralized exchange that has gained popularity among traders, particularly those interested in perpetual futures or 'perps'. Founded by Harvard classmates Jeff Yan and iliensinc, Hyperliquid has been making waves in the DeFi space since its launch in 2023. The platform's Ethereum-compatible HyperEVM and high-performance HyperCore blockchain enable other applications to build upon its shared liquidity, rather than fragmenting it. This approach has attracted hundreds of developers, including notable names such as MetaMask, Phantom wallet, and VALR, who are utilizing Hyperliquid's 'builder codes' to generate revenue. According to Flowscan, these builders have collectively earned around $90 million. The platform's growing user base is praising its capabilities, with Hyunsu Jung, CEO of Hyperion DeFi, likening it to 'AWS for finance'. Jung highlights that Hyperliquid provides more than just a perpetuals exchange, offering a layer-one blockchain infrastructure that enables builders to focus on user experience while the platform handles liquidity and execution. Similar to AWS, builders maintain control over their users and interface, while Hyperliquid provides the underlying liquidity and execution. This allows integrators to charge fees on trades without having to develop and maintain their own backend infrastructure. The integration of Hyperliquid's EVM module with MetaMask, a popular Ethereum-based wallet, has enabled users to access perps directly from their wallets since October 2025. This partnership has streamlined fund transfers, allowing users to trade with the tokens they already hold. Matthieu Saint Olive, Staff Product Manager at MetaMask, notes that the wallet's self-custodial nature and streamlined fund transfers make it an ideal partner for Hyperliquid. By leveraging Hyperliquid's order book, MetaMask can offer its users high-quality liquidity and execution. The partnership has also led to growth in non-crypto assets, such as commodities and equities, according to Saint Olive. MetaMask charges a flat 0.1% builder fee, with no hidden spread or execution costs, providing transparency for traders. Even large centralized exchanges, like VALR, are turning to Hyperliquid for liquidity. Despite building their own infrastructure, VALR struggled to gain traction with their perpetual futures offerings. By partnering with Hyperliquid, they can tap into the platform's vast liquidity and volume. As the DeFi space continues to evolve, Hyperliquid is poised to play a significant role in shaping the future of perpetuals trading. With its composable liquidity and growing user base, the platform is well-positioned to capitalize on the opportunities that lie ahead.