Hyperliquid Revolutionizes DeFi with Deep Liquidity and Composability

The concept that liquidity breeds liquidity is particularly relevant for Hyperliquid, a decentralized exchange that has gained popularity among traders, especially those interested in perpetual futures or 'perps'. Founded by Harvard classmates Jeff Yan and iliensinc, Hyperliquid has been live since 2023 and is now harnessing the power of its extensive order book to offer a unique value proposition: composability. This DeFi concept allows permissionless smart contracts to interlock seamlessly, much like LEGO blocks, giving rise to innovative tokenized financial products. Hyperliquid's Ethereum-compatible HyperEVM is directly connected to its high-performance HyperCore blockchain, allowing other applications to build upon the platform's shared liquidity rather than fragmenting it. This means that applications such as wallets or even other exchanges can leverage Hyperliquid as a backend to offer perps trading and other services, ultimately deepening liquidity and expanding the variety of assets available. As more developers integrate with Hyperliquid, network effects intensify. Currently, hundreds of developers, including prominent names like MetaMask, Phantom wallet, and VALR, are utilizing Hyperliquid's 'builder codes', generating approximately $90 million in revenue. Hyunsu Jung, CEO of Hyperion DeFi, praises Hyperliquid, stating that it's 'not just a perpetuals exchange, but more like the AWS for finance'. Jung emphasizes that Hyperliquid provides a layer-one blockchain infrastructure, offering liquidity and execution, while allowing builders to control the user interface and own their users. Similar to AWS, Hyperliquid enables builders to focus on delivering exceptional user experiences while providing the underlying liquidity and execution. Builder code integrators can charge fees on the notional size of their users' trades without needing to develop the backend or maintain liquidity. For instance, MetaMask, a popular Ethereum-based wallet with over 100 million users worldwide, has integrated with Hyperliquid's EVM module, allowing users to access perps directly from their wallets since October 2025. This integration streamlines fund transfers, enabling users to trade with the tokens they already hold. According to Matthieu Saint Olive, Staff Product Manager at MetaMask, the wallet's integration with Hyperliquid allows for seamless trading, with Hyperliquid handling matching, oracle, and margin engine tasks. Saint Olive notes that MetaMask is witnessing growth beyond crypto, with real-world-asset markets now accounting for roughly a quarter of perp volume. In terms of fees, MetaMask charges a flat 0.1% builder fee, with no hidden spread or execution costs. The company is exploring innovative pricing models to promote transparency and make its economics a key advantage. Even large centralized exchanges, such as South Africa-based VALR, are leveraging Hyperliquid's perps order book for liquidity. Despite initially building their own infrastructure, including risk and liquidation engines, VALR found it challenging to achieve sufficient volume and liquidity for their perpetual futures. Looking ahead, as major players like Robinhood, Coinbase, and Intercontinental Exchange expand into perps, opportunities for cross-venue arbitrage will emerge, according to Jung. This will enable traders to maintain positions on multiple platforms, such as Robinhood and Hyperliquid, and capitalize on non-toxic flow to optimize funding rates.