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HypurrSpace Episode #2

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1. HIP-3 Overview

By staking 500,000 $HYPE and meeting minimal market creation requirements such as oracle price setup and market making, anyone can create a Perp DEX permissionlessly.

2. Unit + Trade.xyz = Spot + HIP-3

What is Unit?

Unit is currently the only team to have launched an HIP-3 market. They are also the team that created the HyperCore Spot orderbook.

  • Created bridges and trading orderbooks for BTC, ETH, SOL, PUMP, and XPL
  • Collects 50% of Spot trading fees and uses them for $HYPE buybacks
    • Unlike the Assistance Fund (AF), this is not an automated buyback. There's speculation that they accumulate when $HYPE is at lows.

Currently Trading

The XYZ100 index product, representing the top 100 US tech stocks, is currently trading.

Products in Preparation

Unit has acquired tickers for TSLA, NVDA, HOOD, INTC, and PLTR - stocks that people are likely to trade the most.

  • These are not yet available for trading.
  • Once trading begins, volume is expected to exceed XYZ100. There should be demand given the positive US market momentum and the availability of 10x leverage.

Unit's Outlook

Unit is likely to become the #1 player in HIP-3 as well. Many are bullish on Unit and are engaging in the following activities hoping for an airdrop:

  • Using Unit bridge
  • Trading Unit Spot assets
  • Trading on Trade.xyz frontend
  • Trading XYZ100

However, Unit has not mentioned anything about airdrops and has not launched a points program, leaving the situation uncertain.

3. Upcoming HIP-3 Market: Hyena

What is Hyena?

Hyena = Hyperliquid + Ethena

A Perp DEX where users can trade using USDe as collateral.

Staking Requirements

  • 200,000 HYPE staking required for USDe collateralization
  • With Hyena HIP-3 creation (500,000 HYPE), approximately 700,000 HYPE staking will likely be needed in total
  • If trading occurs in USDe, we can expect the positive effect of USDe from other chains flowing into Hyperliquid

Collaboration with Based

Hyena is scheduled to launch in collaboration with Based.

  • Based is currently the #1 builder code app by revenue.

What is Builder Code? It allows integration of the Hyperliquid exchange into other frontends, enabling revenue generation through additional fees. Metamask, Phantom, and Rabby Wallet are all integrated. Annualized revenue is $32.31M.

Based's Business Areas: Based is not just a trading web/app but is building a launchpad, card, on/off ramp, and Based Cloud.

Based Cloud:

  • A feature that enables easy creation of your own Hyperliquid frontend. It's essentially the Shopify of the trading industry.
  • Launching an all-in-one trading environment across web, app, desktop, and Telegram.
  • No initial setup costs, just 30% royalty deduction.

Hyena is scheduled to launch based on Based Cloud.

4. SEDA: Emerging as HIP-3 Infrastructure

SEDA Protocol

  • A Layer 1 blockchain designed for oracle infrastructure.

SEDA Sophon

  • An oracle design specialized for supporting HIP-3 markets, collaborating with Pyth. Oracles are one of the necessary elements for HIP-3 market creation.

Token Burn Mechanism

SEDA announced a mechanism that burns their native token $SEDA proportionally to oracle data usage.

Beyond Hyperliquid's HIP-3, they are expanding into various areas:

  • Pre-IPO perps on Injective
  • Perp prediction markets based on Polymarket data
  • Solana - Jupiter price data integration

Following this announcement, $SEDA surged 480% after the liquidation cascade on October 10-11.

Key Partners in Hyperliquid Ecosystem

  • HyperOdd (prediction market)
  • Global Compute Index (GPU capacity trading)
  • Nunchi (long/short positions on funding rates)
  • 2 additional partners to be announced