🆕 Hyperliquid 🆕
DeFi Saver's goal is to provide a comprehensive DeFI experience to all of our users. Classic trading was one avenue that we didn't have available - which is why we opted to integrated Hyperliquid.
Aside from just integrating it, we wanted to ensure that, just like with previous integrations - we can offer a suite of tools on top of what's already available on the protocol directly. So, you'll be able to find DeFi Saver-exclusive features such as:
Trailing Open
Trailing Stop Loss
Depositing assets directly from Ethereum Mainnet
Hedging Aave/Spark positions via Hyperliquid
Telegram notifications (coming soon)
A unified Portfolio page - including lending, borrowing and perp positions across protocols
For those unfamiliar with Hyperliquid - in the next part of this article, we'll provide you with an intro to this L1 blockchain.
The Problem Hyperliquid Was Looking to Solve
Historically, trading on decentralized exchanges was significantly less efficient than trading on centralized exchanges (CEXs).
On Ethereum and many L2 networks, users interact directly with the blockchain itself. This means that actions such as placing or closing a trade generally require:
Wallet confirmations
Transaction signing
Blockchain submission
Waiting for confirmation and inclusion in a block
By the time a transaction is confirmed, the market price may have already moved significantly.
This creates a major issue for active traders, where execution speed is critical.
Centralized exchanges do not have this limitation because trades typically update internal exchange systems instantly without relying on blockchain confirmations for every interaction.
Liquidity and Slippage Problems
Another major issue decentralized exchanges historically struggled with was liquidity depth.
If liquidity is deep:
Large amounts of buy and sell orders exist close to the current market price
Large trades create minimal price movement
Traders experience lower slippage
If liquidity is thin:
Large trades quickly consume available liquidity
Traders receive progressively worse prices while the order fills
Slippage becomes significantly more noticeable
This becomes especially important for larger traders entering or exiting sizable positions.
Hyperliquid’s Core Approach
Part of Hyperliquid’s solution was becoming its own Layer 1 blockchain optimized specifically around trading infrastructure.
Rather than functioning purely as an application on top of another blockchain, Hyperliquid built infrastructure specifically focused on:
Fast order execution
Low latency
Responsive order books
Smooth liquidations
Tighter spreads
This allows Hyperliquid to provide a trading experience that feels significantly closer to centralized exchanges.
The goal is not necessarily to replace Ethereum, but rather to optimize for a different use case.
Ethereum focuses broadly on decentralized finance, smart contracts, decentralization, and general-purpose applications.
Hyperliquid instead focuses heavily on creating a highly optimized decentralized trading environment.
Order Books vs AMMs
Many decentralized exchanges historically relied on Automated Market Makers (AMMs) and liquidity pools.
In AMM systems:
Traders interact with liquidity pools
There is no direct buyer and seller matching
Pricing is determined through liquidity pool formulas
Hyperliquid instead uses a more traditional order book model.
This means:
Buyers place bids
Sellers place asks
Orders are matched directly
Market makers continuously provide buy and sell liquidity
Market makers help maintain tighter spreads and improve overall market efficiency.
The spread itself is simply the difference between the highest bid price and the lowest ask price.
Onchain Order Books
One of the more notable architectural differences is that Hyperliquid attempts to keep the order book itself onchain.
Historically, many decentralized exchanges only settled trades onchain while the actual order matching occurred offchain.
Hyperliquid instead aims to decentralize more of the trading infrastructure itself, not just final settlement.
The broader objective is not simply making decentralized trading possible, but making decentralized trading feel significantly better to use.
HIP-3
One of Hyperliquid’s more important mechanisms is HIP-3.
HIP stands for Hyperliquid Improvement Proposal, similarly to how Ethereum has Ethereum Improvement Proposals (EIPs).
HIP-3 focuses on permissionless perpetual markets.
Traditionally, exchanges fully control:
Which assets are listed
Which perpetual markets exist
Which trading pairs become available
HIP-3 changes this by allowing users to create perpetual markets themselves instead of relying entirely on centralized listing decisions.
This introduces a more permissionless structure to perpetual trading.
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