Hyperliquid's token launch model under HIP-3 is facing scrutiny due to concerns over scalability and risk management. DeFi analyst Jordi highlights that the user-launched markets require locked capital and present slashing risks and potential conflicts of interest. Participants must stake 500,000 HYPE tokens to deploy synthetic perpetuals, with fees distributed among them.
Currently, four market segments are operational, including tokenized stocks and leveraged cryptocurrencies. Despite the total volume on these custom markets surpassing $11.69 billion, with tokenized indices accounting for 68.3%, Jordi warns that the yield calculations are unsustainable without significant trading volumes to support competitive annual percentage yields (APYs).
Hyperliquid's Custom Markets Raise Scalability and Risk Concerns
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