FDV exceeds 9 billion US dollars and the community has given it positive reviews. Why is Hyperliquiquid successful?

Technical Mechanism: Hyperliquid's success stems from its advanced Vault system, featuring Protocol Vaults (HLP) and User Vaults, which enhance liquidity for long-tail assets and offer composability as a chain, skipping intermediate steps and boosting valuation potential.
Market Strategy:
- Avoids traditional fundraising, big exchange listings, and aggressive advertising, opting for a bottom-up approach that resonates with current market trends.
- Generous airdrops and a transparent, task-free user experience (no PUA or endless NFT grinds).
- Positions itself as a "chain" (not just a Perps dex), enabling DeFi integrations (e.g., stablecoins, lending) and shifting comparisons from Perps rivals to public chains.
- Targets the "Binance on-chain" narrative, addressing the unmet demand for a decentralized Perps solution to complete the DeFi puzzle.
Key Takeaway: Hyperliquid’s Vault mechanism is a foundational innovation for Perps (akin to AMM for Dex), with dYdX already adopting it. While market timing is unpredictable, its technical edge and strategic positioning solidify its role beyond a "promising but stagnant" project.

Author:CM

Why @HyperliquidX is more successful than other Perps is the most discussed topic today. Let me talk about $HYPE from my personal experience. One shot to the end 🧵

1. Technical mechanism perspective

The key here is actually Vault. This mechanism is available on GMX and Jupiter, but Hyperliquid's Vault is an evolved version, with Protocol Vaults (HLP) and User Vaults, opening the door to diversity.

At the same time, the emergence of diversified Vaults has also solved the liquidity problem of long-tail assets. The trading of long-tail assets is the core competitiveness of Perps dex over cex, and it is also a problem that many competitors have been exploring to solve.

Then there is the composability as a chain, which directly skips the transition process from Protocol to Chain and goes straight to the final round, opening up space in both valuation and imagination.

2. Market perspective

Here are a few bonus points, which are actually worth learning from many projects.

(1) Do not raise funds, do not pursue listing on a large firm, and do not deliberately spend money on advertising. It is easier to gain favor in this round of the market by taking a bottom-up approach.

(2) We are willing to give out airdrops.

(3) No PUA. Although there were disputes over score dilution in several stages in the early stages, it is generally clean and neat, and there is no endless cycle of completing tasks and then getting NFTs.

(4) Positioning is based on the "chain", providing imagination and valuation space. Hyperliquid is actually a chain, so various defi and Perps combinations can be built on it, such as stablecoins, lending, etc. Therefore, a phenomenon occurred. At the beginning, everyone compared the valuation of some Perps dex with $HYPE, and gradually felt that something was wrong, so they began to compare it with the public chain. This alternative sense of gap in upward breakthrough once again drove market sentiment.

(5) Positioning as "Binance on the chain" is very topical because DeFi protocols such as dex, lending, and stablecoins have basically gained a place in the market, and only the Perps track is still struggling. This also meets the expectations of the last piece of the DeFi puzzle.

Summarize

The market is uncontrollable, and the right time, right place and right people are difficult to replicate, but the technical mechanism is certain. For now, there will be no major technological innovation in the future. Vault is to Perps what AMM is to Dex. dYdX has also recently introduced Vault. In the future, more micro-innovations may involve various forms of Vault. The success of this mechanism has established Perps' position, and it may no longer be the vase that looks promising but cannot develop.