Hyperliquid's Blockchain for Trading Applications

Hyperliquid is a blockchain designed for trading applications and its native asset HYPE is used to pay network transaction fees on HyperEVM, which allows developers to create applications using smart contracts. The fee needed to transfer tokens or interact with a contract is called gas, and it's different from an exchange trading commission.

Native HYPE staking takes place within HyperCore, where users delegate HYPE from a staking account to a chosen validator that participates in reaching agreement on the network's transaction history. Rewards depend on network rules and factors such as validator commission.

A spot purchase gives you a HYPE balance, while perpetual trade creates a contract position linked to a price; taking a position on HYPE does not necessarily deliver HYPE tokens. Leverage increases the size of the position supported by your collateral, but also accelerates losses.