Hyperliquid's Innovative Approach Revolutionizes Decentralized Exchanges
Hyperliquid, a decentralized exchange (DEX) for perpetual futures, has drawn significant attention in recent times. According to Eugene Kwok, Business Manager at QCP Group, the platform's unique approach is often misunderstood.
In an interview with QCP, Kwok explained that Hyperliquid was built differently from other DEXs. Instead of using a layer one blockchain like Ethereum or Solana and building exchange capabilities on top, Hyperliquid created its own purpose-built layer one called HyperCore. This provides native order-book and trading functionality, as well as a HyperEVM environment for smart contracts.
Kwok emphasized that Hyperliquid is not just a DEX with its own token but rather a trading-optimized blockchain whose flagship application is one of the largest decentralized derivatives exchanges. The matching engine and margin system are part of the blockchain's native state, addressing the common issue of slow performance on-chain.