HIP-1 vs HIP-2 vs HIP-3: Understanding Hyperliquid's Improvement Proposals

Hyperliquid has evolved through a series of Improvement Proposals (HIPs). Here’s how HIP-1, HIP-2, and HIP-3 fit together.

HIP-1: The Foundation

HIP-1 established Hyperliquid’s core perpetual futures engine. It defined the L1 architecture, order book design, and fee structure. Everything you see today—mainnet perps, leverage, funding rates—builds on HIP-1.

HIP-2: Governance and Staking

HIP-2 introduced HYPE token governance and staking. Stakers earn a share of protocol fees and can vote on parameters. HIP-2 made Hyperliquid a community-governed protocol rather than a purely team-run product.

HIP-3: Permissionless Markets

HIP-3 is the latest leap. It allows builders to deploy their own perpetual DEXes by staking 500,000 HYPE. The first three assets in each new perp DEX are free to list; additional assets use Dutch auctions.

In short:

• HIP-1 = The engine
• HIP-2 = Governance and staking
• HIP-3 = Permissionless market deployment

All three work together. HIP-3 markets run on the same infrastructure HIP-1 built, and HIP-2 stakers help secure and govern the network that HIP-3 builders use.

Trading Across HIPs

As a trader, you don’t need to think about which HIP a market comes from. Mainnet and HIP-3 markets share the same interface, fees, and execution. The main difference is who deployed the market—the core team or a third-party builder.

If you want lower fees while getting started, visit our discount page.

You may also want to compare HIP-3 vs mainnet markets before trading builder-deployed perps.