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, and what each one changes for traders evaluating builder-deployed markets.

Fast path for today’s readers

If you landed here from search, use this page to identify which part of Hyperliquid you are evaluating, then move to the right next step:

• New to HIP-3: start with the builder-deployed perps explainer so the market structure is clear.
• Comparing a live market: run the HIP-3 market checklist before considering size, leverage, or funding.
• Considering the referral: review the C3BF referral disclosure and confirm current eligibility inside Hyperliquid before trading.

A referral discount can reduce eligible fees, but it does not reduce market, oracle, liquidity, liquidation, leverage, smart-contract, or platform risk.

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

Trader takeaway

If you are deciding whether to trade a HIP-3 market, the proposal names matter less than the risk model they imply:

Proposal	What it changed	What traders should check
HIP-1	Core Hyperliquid perpetual trading infrastructure	Normal perp mechanics: order book depth, leverage, funding, liquidation risk, and fees.
HIP-2	HYPE staking and governance context	Protocol incentives, validator/staker economics, and governance changes that can affect the broader venue.
HIP-3	Builder-deployed perpetual markets	Who deployed the market, oracle design, liquidity quality, funding behavior, contract rules, and whether the asset has reliable reference pricing.

A useful path is to learn the architecture here, then run the HIP-3 market checklist before reviewing the referral code C3BF disclosure. The referral can reduce eligible fees, but it does not reduce market, oracle, liquidity, leverage, liquidation, or platform risk.

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, first review how to trade HIP-3 and the risk guide. Then visit the discount page to confirm the current referral details and eligibility in Hyperliquid.

You may also want to compare HIP-3 vs mainnet markets before trading builder-deployed perps. For a practical first-click path, use the TradeHIP3 start-here checklist.