Hyperliquid is a decentralized perpetual futures exchange built on its own custom Layer 1 blockchain specifically designed for on-chain orderbook trading. Unlike most DEXs that operate as smart contracts on existing blockchains, Hyperliquid built an entire blockchain infrastructure optimized for high-performance trading with sub-millisecond latency and zero gas fees for users. The protocol features a fully on-chain orderbook where all orders, trades, and price data are recorded on-chain, providing complete transparency and enabling anyone to audit market activity. Hyperliquid's custom architecture allows for centralized-exchange performance while maintaining decentralized custody and trustless execution.

Trading on Hyperliquid offers unique advantages compared to both traditional CEXs and other DEXs. The L1 blockchain enables millisecond-level trade execution with zero gas fees for takers and makers, making it one of the most cost-efficient trading platforms. Hyperliquid supports advanced order types including limit orders with post-only or reduce-only flags, market orders, and conditional orders. The protocol offers leverage up to 50x on major pairs, with liquidations handled by keeper bots that ensure protocol solvency. Funding rates on Hyperliquid are determined by on-chain market dynamics and adjusted continuously, providing a fair mechanism for perpetual pricing.

Hyperliquid's architecture separates the blockchain layer from the application layer, allowing for continuous improvements to trading features without requiring protocol upgrades. The platform features a unique cross-margin system where traders can use multiple assets as collateral, optimizing capital efficiency. Trading pairs on Hyperliquid include major cryptocurrencies like BTC, ETH, SOL, and others, with plans to expand to additional assets. The protocol's native token provides governance rights and staking rewards. Users can access Hyperliquid through web interfaces or directly via its API, with all interactions secured by their private keys throughout the trading process. The combination of L1 performance, zero fees, and on-chain transparency makes Hyperliquid attractive for both retail and institutional traders seeking decentralized perpetual futures trading.