{"id":607666,"date":"2026-06-12T18:00:00","date_gmt":"2026-06-12T22:00:00","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=607666"},"modified":"2026-06-12T08:05:43","modified_gmt":"2026-06-12T12:05:43","slug":"is-tradexyzs-hip-3-dominance-becoming-hyperliquids-structural-risk","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/is-tradexyzs-hip-3-dominance-becoming-hyperliquids-structural-risk\/","title":{"rendered":"Is TradeXYZ&#8217;s HIP-3 dominance becoming Hyperliquid&#8217;s &#8216;structural&#8217; risk?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">There is a simmering crisis beneath Hyperliquid&#8217;s successful commodities perpetual (perps) markets, commonly known as a HIP-3.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The sector <\/span><a href=\"https:\/\/ambcrypto.com\/quite-sticky-what-hip-3-60-user-retention-means-for-hyperliquid\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">exploded<\/span><\/a><span style=\"font-weight: 400;\"> earlier in 2026 as the West Asia crisis forced tradFi and crypto natives to camp at Hyperliquid to trade oil, gold, and silver during weekends.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> In fact, HIP-3 drove over 40% of Hyperliquid&#8217;s total volume at one point, making the platform a darling to many, including Wall Street.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the mechanics behind the HIP-3, especially for deployers, are flashing pressure signs now. These could expose the platform to risk, according to Blockworks Research.\u00a0<\/span><\/p>\n<h2><strong>The problem with Hyperliquid HIP-3 markets<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">For clarification, HIP-3 markets are created and deployed by third parties, not Hyperliquid. Afterwards, there is a revenue-sharing model between Hyperliquid and the deployer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, before the revenue sharing, every deployer must lock up 500K HYPE or about $30M. This arrangement comes with only three free slots for tickers or HIP-3 markets that can be deployed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Beyond three markets, the deployer must bid for the tickers in an auction sale and spend an extra 500 HYPE or $30K for every extra ticker.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, since TradeXYZ controls over 90% of the HIP-3 market, other competitors have struggled to keep afloat.\u00a0<\/span><\/p>\n<figure id=\"attachment_607671\" aria-describedby=\"caption-attachment-607671\" style=\"width: 2560px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12.png\"><img decoding=\"async\" class=\"wp-image-607671 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12.png\" alt=\"Hyperliquid \" width=\"2560\" height=\"1440\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-300x169.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-1024x576.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-768x432.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-1536x864.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-2048x1152.png 2048w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-1600x900.png 1600w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-1280x720.png 1280w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-960x540.png 960w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-640x360.png 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-320x180.png 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-160x90.png 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Open-Interest_2026-06-12-1200x675.png 1200w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><figcaption id=\"caption-attachment-607671\" class=\"wp-caption-text\">Source: DeFiLlama<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In fact, Felix, one of the HIP-3 deployers, has announced that it will shut down on 20 June. Felix cited competition from TraderXYZ, despite being the first to create the silver, gold, and oil markets.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">These markets drove us solid fees during December and January and about 3bn in volume, but were eventually surpassed by TradeXYZ once they launched the same markets denominated in USDC.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">The impact of the competition is way worse than most people thought though. According to Blockworks, it can now take smaller HIP-3 deployers an average of 4 years to recover the auction spend (the $30K per ticker).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Blockworks analyst Shauda Devens <\/span><a href=\"https:\/\/x.com\/shaundadevens\/status\/2065184988291625013\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">added<\/span><\/a><span style=\"font-weight: 400;\">,\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">In our sample of 136 paid HIP-3 listings, only 44 have recovered their auction cost, with non-TradeXYZ markets having a median projected payback period of 4 years.<\/span><\/p><\/blockquote>\n<figure id=\"attachment_607672\" aria-describedby=\"caption-attachment-607672\" style=\"width: 1920px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI.jpg\"><img decoding=\"async\" class=\"wp-image-607672 size-full\" src=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI.jpg\" alt=\"Hyperliquid HIP-3\" width=\"1920\" height=\"1080\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI.jpg 1920w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-300x169.jpg 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-1024x576.jpg 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-768x432.jpg 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-1536x864.jpg 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-1600x900.jpg 1600w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-1280x720.jpg 1280w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-960x540.jpg 960w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-640x360.jpg 640w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-320x180.jpg 320w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-160x90.jpg 160w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2026\/06\/Hyperliquid-HIP-3-deployers-FI-1200x675.jpg 1200w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><\/a><figcaption id=\"caption-attachment-607672\" class=\"wp-caption-text\">Source: Blockworks<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Additionally, due to TradeXYZ&#8217;s dominance, there is a higher regulatory attack risk,.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Deployer concentration introduces regulatory and structural risk. Under current incentives, HIP-3 is unlikely to sustain a competitive, decentralized listing market.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">To mitigate this, Blockworks has proposed lowering the required locked HYPE for small builders. At the same time, the research firm wants small deployers to capture 100% of the revenue and only share with Hyperliquid when they\u2019ve fully recovered their auction expenses.\u00a0<\/span><\/p>\n<hr \/>\n<h2><strong>Final Summary<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Hyperliquid HIP-3 deployers are facing a crisis amid stiff competition that could stretch the break-even period to 4 years.\u00a0<\/span><\/em><\/li>\n<li style=\"font-weight: 400;\"><em><span style=\"font-weight: 400;\">Blockworks has called for lower launch costs and a shorter break-even period to make the markets more decentralized.\u00a0<\/span><\/em><\/li>\n<\/ul>\n<hr \/>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Felix may be the first Hyperliquid HIP-3 deployer to fall, but more could follow. <\/p>\n","protected":false},"author":79,"featured_media":607677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,4,20],"tags":[6427],"class_list":["post-607666","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-social","category-trading-view","tag-ambcrypto"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Is TradeXYZ&#039;s HIP-3 dominance becoming Hyperliquid&#039;s &#039;structural&#039; risk? 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