Hyperliquid's HIP-3 Growth Mode Slashes Trading Fees by 90% to Fuel DeFi Expansion

Hyperliquid has launched its HIP-3 growth mode, drastically reducing trading fees for newly deployed markets by over 90 percent. This upgrade allows deployers to activate ultra-low fees without centralized approval, aiming to enhance liquidity and incentivize market-making in decentralized derivatives trading.

Under HIP-3, all-in taker fees drop from the standard 0.045 percent to as low as 0.0045 percent, with potential reductions to between 0.00144 percent and 0.00288 percent at higher staking and volume tiers. Deployers can set fees on a per-asset basis, providing flexibility to lower costs further and address the cold-start liquidity problem common in decentralized finance.

To qualify, deployers must stake 500,000 HYPE tokens, valued at approximately $20 million, ensuring vested interest in market success. Validators can slash stakes for malicious operations, maintaining network security. Markets under HIP-3 must avoid overlap with existing validator-operated products, such as crypto perpetuals and indexes, to support unique offerings like equities, commodities, and forex pairs.

The initiative has already shown impact, with deployments like the XYZ100 market generating over $1.3 billion in volume and the Tesla perpetual contract highlighting platform versatility. Hyperliquid aims to compete directly with centralized exchanges like Binance and Bybit, positioning itself as a key infrastructure layer for on-chain finance.