Hyperliquid activates its HIP-3 upgrade on Monday and introduces permissionless perpetual market creation on its decentralized derivatives platform.
Summary
- HIP-3 allows builders to stake perpetual futures markets on HyperCore by staking 500,000 HYPE tokens.
- The upgrade follows a market-wide liquidation of $19.3 billion, which freed $10 billion for Hyperliquid alone.
- The HYPE price has recovered from $20 to $42, aiming to break the $45 resistance aligned with the 20-day SMA.
Hyperliquid (HYPE) will take a big leap towards decentralization with the activation of the HIP-3 upgrade (Hyperliquid Improvement Proposal 3).
According to one announcement The network upgrade, shared in Hyperliquid’s official Discord, will go live on October 13 and include HIP-3. While there will be no immediate impact for existing users, builders who meet the on-chain criteria can begin deploying their own perpetual markets once preparations are complete.
Under HIP-3, implementers can launch decentralized perpetual exchanges on the HyperCore infrastructure by staking 500,000 HYPE tokens. The system integrates with HyperEVM and offers support for smart contracts and management capabilities. To ensure market integrity, the proposal introduces safeguards such as validator slashing mechanisms and open interest caps.
A minimum viable product of this function was previously live on testnetand today marks the official mainnet rollout.
HYPE is rebounding as Hyperliquid weathers a $10 billion liquidation
The rollout of HIP-3 comes just days after one of the most turbulent weekends in the crypto markets this year, fueled by renewed global trade tensions. Massive leverage on the major exchanges wiped out about $19.3 billion in positions, with more than $10 billion in liquidations on Hyperliquid alone, according to Coinglass data.
Meanwhile, Hyperliquid’s native token HYPE is making a strong recovery after last week’s decline to the $20 level. The token is now trading near $40 and is trying to reclaim the rising trendline support, which now acts as resistance and has led the price action since late May. The $45 zone, in line with the 20-day SMA, remains the short-term resistance. A successful break above could pave the way for a move towards $52, which corresponds to the most recent swing high.