Hyperliquid Revolutionizes DeFi with Composable Liquidity

The concept of liquidity breeding liquidity is being taken to new heights by Hyperliquid, a decentralized exchange that has become a top choice for traders, particularly those interested in perpetual futures or 'perps'. Launched in 2023 by Harvard classmates Jeff Yan and iliensinc, Hyperliquid is leveraging its robust order book to provide firms with a unique offering: composability, a concept from DeFi that allows permissionless smart contracts to interlock like building blocks, creating new tokenized financial products. The platform's Ethereum-compatible HyperEVM is directly connected to its high-speed HyperCore blockchain, enabling other applications to tap into Hyperliquid's shared liquidity without fragmenting it. This means that wallets and exchanges can utilize Hyperliquid as a backend to offer perps trading and other services, resulting in deeper liquidity, expanded assets, and compounded network effects. With hundreds of developers, including prominent names like MetaMask, Phantom wallet, and VALR, using Hyperliquid's 'builder codes', the platform has generated approximately $90 million in revenue. A growing number of supporters are praising the platform's capabilities. According to Hyunsu Jung, CEO of Hyperion DeFi, 'Hyperliquid is not just a perpetuals exchange; it's akin to AWS for finance, providing a layer-one blockchain infrastructure that offers liquidity and execution, allowing builders to focus on delivering exceptional user experiences'. Similar to AWS, builders own their users and have full control over the user interface, while Hyperliquid provides the underlying liquidity and execution. Integrators using builder codes can charge fees based on the notional size of their users' trades without needing to develop the backend or maintain liquidity. For applications like MetaMask, integrating with Hyperliquid's EVM module makes perfect sense. Since October 2025, MetaMask has provided its users with self-custodial access to perps directly from the wallet. Being a wallet offers the advantage of streamlined fund transfers, allowing users to trade directly with the tokens they already hold. Matthieu Saint Olive, Staff Product Manager at MetaMask, stated that 'matching orders is genuinely challenging, and Hyperliquid excels at it, so we don't attempt to rebuild it'. By routing orders directly to the Hyperliquid order book, MetaMask Perps offers some of the best liquidity and execution quality available. MetaMask is witnessing growth beyond crypto, with real-world-asset markets increasing from a small slice of perp volume at the start of 2026 to roughly a quarter of it today. The company charges a flat 0.1% builder fee, with no hidden spread or execution costs, providing transparency and verifiability for traders. Even large centralized exchanges, such as VALR, are turning to Hyperliquid for liquidity requirements. Despite initially building their own infrastructure, including risk and liquidation engines, the team at VALR found it challenging to achieve sufficient volume and liquidity for their perpetual futures. Looking ahead, as major players like Robinhood and Coinbase enter the perps market, opportunities for cross-venue arbitrage will arise, according to Jung. This will enable traders to maintain positions on multiple platforms, such as Robinhood and Hyperliquid, and capitalize on non-toxic flow, leading to more organic mechanisms for funding rates.