Hyperliquid's vision: The AWS of liquidity (Builder Codes, CoreWriter and HIP-3)

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Introduction

Hyperliquid made a spectacular entrance into the ecosystem, proving that it was possible to build a decentralized finance platform capable of rivaling centralized giants. The project found product-market fit by addressing the most fundamental market need: enabling cryptocurrency trading in the best possible conditions.

But the real success of Hyperliquid lies not only in the quality of its product, its development strategy, or even the largest airdrop ever distributed in crypto history. Above all, it is rooted in a decisive point: having built the platform with the deepest liquidity in the market.

Liquidity is the single truth when it comes to financial markets. However, decentralized finance emerged with the promise of making finance more open and accessible, but this openness led to the rise of a multitude of blockchains and applications, all competing relentlessly to attract and retain the same liquidity.

The history of decentralized finance is a cycle that repeats itself endlessly: protocols are born, attract liquidity through incentives or airdrops, and then see their users migrate as soon as a better opportunity arises. In this world, liquidity remains a zero-sum game.

Hyperliquid has built an infrastructure capable of retaining this liquidity, to the point of rivaling the leading centralized exchanges. Its true thesis: transforming liquidity into a resource accessible to all, which any developer can use to build, distribute, and monetize their applications.

AWS: Cloud Infrastructure ↔ Hyperliquid: Liquidity Infrastructure

AWS revolutionized the cloud by abstracting away technical complexity so developers could focus on innovation and user acquisition.

Hyperliquid aims to do the same for liquidity: abstract away the complexity and offer decentralized finance an infrastructure to rely on to build innovative products and acquire users.

In this research, we will try to understand how Hyperliquid's architecture, along with new building blocks such as Builder Codes, CoreWriter, and HIP-3, will enable Hyperliquid to realize this vision of being the "AWS of liquidity."

As part of this research, we interviewed two Hyperliquid builders: @androolloyd, CEO of HypurrFi and @0xNessus, CEO of Hyperlend. We thank them for their contributions.

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Context on Hyperliquid

While most perpetual DEXs are built on existing blockchains, inheriting their scalability and performance constraints, Hyperliquid made the radical choice to create its own custom infrastructure.

The Hyperliquid blockchain is specifically designed to support a fully on-chain order book, a major innovation for decentralized finance allowing it to meet the demands of a high-frequency trading platform.

At the heart of this blockchain lies the HyperBFT consensus mechanism, an optimized version of Byzantine Fault Tolerant algorithms (HotStuff/LibraBFT). Hyperliquid achieves performance levels that few can match: less than one second to finalize a block and the ability to handle hundreds of thousands of orders per second.

Hyperliquid's infrastructure relies on two complementary layers:

• HyperCore: the native execution layer that manages the critical functions of the trading platform. It operates as an ultra-efficient engine, capable of supporting deep order books and the required liquidity.
• HyperEVM: the EVM-compatible layer, allowing any developer to deploy smart contracts and thus build decentralized applications, while natively benefiting from Hyperliquid’s liquidity and performance.

The key to this architecture lies in the unification of state between HyperCore and HyperEVM: there is no bridge, no risk of inconsistency, no delays. Applications built on HyperEVM can read and write directly to the deep liquidity of HyperCore, in real time.

But as explained above, the success of Hyperliquid's DEX is only one step to demonstrate the performance of its infrastructure. In reality, the vision is to build a "liquidity layer" where market depth, performance, and composability become accessible to a whole new generation of financial applications.

To achieve this, Hyperliquid has introduced three major components, which we will study in the rest of this research: Builder Codes, CoreWriter, and HIP-3.

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Builder Codes

Overview

When they were introduced in October 2024, few people recognized the real power of Builder Codes. Yet, they are one of the protocol's deepest innovations and, above all, a strategic pillar that allows Hyperliquid to directly challenge CEXs and pursue its “AWS of liquidity” vision.

The idea is simple but radical: instead of acquiring users through traditional means (advertising, partnerships with KOLs, bounty programs, grants, etc.), Hyperliquid “outsources” its product distribution by allowing any interface to connect natively to its trading infrastructure and earn revenue from it.

Concretely, Builder Codes are unique identifiers that enable any developer to connect their front end to Hyperliquid’s back end. Thus, every trade executed through this identifier is routed through Hyperliquid’s order book and automatically pays out a percentage of trading fees to the developer.

“Builder Codes represent a true paradigm shift: now, new users can come trade on-chain while keeping their assets where they already are, without having to move them.” – @androolloyd, CEO of HypurrFi.

In practice, this means any trading bot, mobile application, or wallet can choose to use Hyperliquid as its back-end infrastructure to offer crypto trading to its users, while also earning a share of the fees generated.

An important point to add is that Builder Codes are fully customizable, especially from a fee point of view. What makes them particularly interesting is that Hyperliquid's base fees are very low, so builders have the opportunity to apply a correct margin while remaining attractive and profitable.

Role and Implications

The true strength of the Builder Codes model does not lie in its technical aspect, but rather in its implications for Hyperliquid’s growth. In reality, it is a genuine distribution strategy with exponential potential.

• For developers, there is no longer any need to build a performant order book or to attract liquidity, as Hyperliquid provides the necessary infrastructure.
• For Hyperliquid, there is no longer any need to manage product promotion, user acquisition, or even product innovation, as all of this is delegated to a network of builders.

Builder Codes thus introduce a win-win system that radically departs from classical DeFi models. Liquidity is no longer a divided resource for which each protocol battles to attract; it is shared and even strengthened with each new builder.

“Thanks to Hyperliquid’s liquidity infrastructure and revenue system, builders can create highly targeted and personalized experiences for their user segments.” – @androolloyd, CEO of HypurrFi.

It is clear that Hyperliquid’s vision is not to position itself as a super-app centered around the exchange, but rather to become solely a back-end infrastructure to support on-chain finance.

Adoption and Key Metrics

Builder Codes were introduced in October 2024 by the Hyperliquid team. Nevertheless, it took several months before the community truly understood the value of this tool.

Among the first protocols to implement Builder Codes, we can mention:

• Pvp Trade: a Telegram bot that enables trading on Hyperliquid, sharing alphas, copying others’ trades, or even countertrading. In total, they have generated $7.2 million in revenue.
• Okto: a mobile app simplifying the trading experience on Hyperliquid, from bridging to spot and perpetual markets. Total revenue: $690,000.
• Axiom: a trading platform based on Hyperliquid, offering advanced trading features for perpetual contracts, among others. Total revenue: $928,000.
• HyperDash: a website specializing in sharing data related to Hyperliquid (asset info, liquidations, key protocol metrics, etc.), but above all, offering copy trading services. Total revenue: $160,000.

As of this writing, 176 builders are using Builder Codes. The total revenue generated amounts to $10.8 million in builder fees and just over $12.6 million in referral fees, according to data from HypeBurn.

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CoreWriter

Overview

If Builder Codes enabled the distribution of Hyperliquid’s liquidity to a new generation of builders, CoreWriter (formerly known as Write Precompiles) is the technical cornerstone that allows this liquidity to be used, managed, and natively integrated into any application on the network.

Before explaining how it works, it’s important to introduce the concept of precompiles on Hyperliquid. Since the launch of the HyperEVM testnet, developers had access to Read Precompiles; smart contracts that allowed them to read information from HyperCore, such as perp positions, spot balances, vault amounts, oracle prices, or staking amounts.

However, the most anticipated feature was Write Precompiles. Deployed on the HyperEVM mainnet on July 5th and renamed CoreWriter, these smart contracts now allow not only reading but also writing directly to HyperCore.

In practice, this means that any decentralized application on HyperEVM can now execute transactions directly on HyperCore. This finally opens the door to true interoperability and composability between Hyperliquid’s two native layers.

Role and Implications

One of the major strengths of Hyperliquid’s infrastructure is that HyperCore and HyperEVM share the same state. The introduction of CoreWriter is the final step in realizing this vision, as it enables a fully unified, composable network that shares a single state.

Now, applications on HyperEVM can use smart contracts to interact directly with HyperCore by placing orders in the order book, managing vaults, moving assets, interacting with validators, participating in staking, and much more.

For the first time, both users and developers have access to the same mutualized, programmable liquidity layer in a fully permissionless way.

Adoption and Use Cases

One of the most anticipated protocols, which requires CoreWriter for its operation, is Kinetiq. Launched on July 15, 2025, Kinetiq surpassed $470 million in TVL in just two days.

Before the launch of CoreWriter, liquid staking protocols on HyperEVM were mainly managed by multisigs, with every operation executed manually, simply because they couldn’t interact directly with HyperCore.

Now, it’s possible to automate the allocation of users’ HYPE tokens to various validators. This is precisely what Kinetiq offers, notably through its validator ranking system based on StakeHub.

Other use cases that could be explored include:

• DEXes: HyperEVM DEXes were previously limited to classic AMM models in DeFi. Now, they can fully leverage Hyperliquid’s order book to offer two types of swaps to their users, depending on their needs.
• Lending: Most lending markets execute liquidations via AMMs. Now, it’s possible to do this through the Hyperliquid order book, where liquidity is deeper. In the longer term, using perp positions as collateral on lending markets is another possibility.
• Delta-neutral stablecoins: Creating algorithmic stablecoins (like Ethena or Resolv Labs) that can hedge their exposure in real time via HyperCore.
• Tokenization: The possibility to tokenize Hyperliquid vaults (like HLP) for use as collateral on other HyperEVM markets.
• Arbitrage, automation, portfolio management: Direct access to high-frequency trading tools for implementing complex strategies that were previously impossible in DeFi.

“Personally, I’m very excited about what CoreWriter will enable. For Hyperlend, we’re already working on several ways to leverage it, particularly by providing new infrastructure for ‘portfolio margin’ and ‘coin-margined’ lending—areas where there’s still much to be explored.” – @0xNessus, CEO of Hyperlend

It’s clear that Hyperliquid’s vision is to make its core asset, the liquidity layer, easily and automatically accessible to its own ecosystem. By making liquidity truly “programmable,” every DeFi builder has a compelling reason to join the network.

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HIP-3

Overview

If Builder Codes enable the distribution of liquidity and CoreWriter allows it to be leveraged in all kinds of applications, HIP-3 represents the opening and decentralization of the technology and the markets by allowing any actor to permissionlessly deploy new perpetual markets on Hyperliquid.

Accessing the creation of new perpetual markets requires staking 1 million HYPE tokens (approximately $47 million at the current rate). This amount acts as collateral, which can be slashed in case of malicious behavior, ensuring the quality of deployed markets, the safety of users, and the protocol as a whole.

Launching a new market occurs through a Dutch auction, held every 31 hours. The highest bidder in the auction obtains the exclusive right to deploy a market (for example, a new perp on an index, a stock, a sector, etc.).

The market creator has the authority to choose the asset, the type of oracle, leverage limits, fee amounts, accepted collateral, and so on. They can earn up to 50% of the fees generated by the market, which allows the development of real business models around deploying and managing markets.

Role and Implications

The main challenge of HIP-3 is to transform Hyperliquid from an exchange limited to a few markets into a neutral infrastructure where an infinite number of new markets can emerge. This is a major step toward the vision of becoming the liquidity layer of on-chain finance.

This approach is a radical break from traditional CEXs, where access to listing depends on opaque criteria, often dictated by extractive and non-transparent agreements. Recent examples abound: from token listings in exchange for a significant share of supply, last-minute imposed conditions, or listing/delisting decisions that prioritize value extraction over community interest.

By making the creation of perpetual markets open (albeit limited to certain actors), Hyperliquid removes this arbitrary power: it’s no longer about winning the favor of an exchange, but about being able to support the costs and requirements of market management. The process is transparent, competitive, and based on objective criteria.

The implications are significant:

• Potential explosion in market offerings: Stocks, indices, commodities, FX, structured products, prediction markets, thematic baskets… any asset can now have its own perp market on Hyperliquid, as long as there’s sufficient liquidity and seriousness.
• New monetization models: Each market becomes a mini-business, generating income for its operators, while benefiting from Hyperliquid’s shared liquidity and user base.
• Network effect and HYPE flywheel: Every new market requires HYPE to be staked, which drives demand and locks up supply. Fees generated by these markets fund buybacks and burns of HYPE, reinforcing the token’s value as the ecosystem grows.
• Institutional appeal: The door is open for financial institutions that wish to replicate existing markets or innovate with new products on a high-performance, transparent infrastructure.

Adoption and Use Cases

HIP-3 has already attracted interest from major funds and recognized crypto teams: Framework Ventures, Ethena, Felix Protocol, among others, have announced or hinted at their intention to deploy markets, aiming to capture new revenue streams and bring new assets to Hyperliquid’s shared liquidity.

One interesting use case could also involve liquid staking protocols to obtain eligibility to deploy new markets. In Kinetiq’s case, we could imagine a “perps-as-a-service” model, where users become part of a kind of governance that decides on the allocation of HYPE.

In short, actors wanting to deploy perpetual markets could partner with Kinetiq, agreeing to give up a portion of their revenues in exchange for delegated HYPE from users. These revenues would then fuel the yield of kHYPE.

“We can create lending markets or vaults that integrate directly with the Hyperliquid perps market or new HIP-3 perps markets. For example, these could be isolated lending pools for long-term assets, where the collateral is hedged by a perp deployed by a builder. This is not possible anywhere else: you get near-CEX level execution and liquidity with DeFi composability.” – @androolloyd, CEO of HypurrFi.

To sum up, HIP-3 makes Hyperliquid the first truly open infrastructure layer for the creation and monetization of markets. It’s the final brick to transform Hyperliquid into the “AWS of liquidity,” unlocking a new growth cycle for HYPE, builders, and the entire on-chain finance industry.

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The AWS of Liquidity

The “AWS of liquidity” formula may sound catchy, but it’s actually quite evocative of Hyperliquid’s long-term vision:

→ Amazon Web Services (AWS) revolutionized the cloud world by allowing hundreds of thousands of developers to quickly and securely host their applications, freeing them from technical hurdles so they could focus on what really matters: building.

→ Hyperliquid is disrupting decentralized finance by giving any developer seamless access to a technical infrastructure, an order book, and deep liquidity that rivals centralized platforms—allowing them to focus on building a great product.

Hyperliquid’s real ambition isn’t to become a super-app for on-chain finance. On the contrary, it seems the entire effort is focused on the back-end: positioning itself as the reference infrastructure, while user acquisition is entirely externalized to the developers building on top of it.

• Builder Codes drive distribution and promotion, innovation in trading features, and user acquisition.
• Precompiles, and especially CoreWriter, give developers the ability to build innovative on-chain financial applications on HyperEVM, directly leveraging Hyperliquid’s liquidity and infrastructure.
• HIP-3 opens up the infrastructure to other players, now responsible for creating and managing new markets.

In this model, Hyperliquid simply provides the foundation (the “cloud” for AWS) that allows the ecosystem to focus on diverse use cases, innovation, distribution, and user acquisition, while redistributing value to those who contribute.

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Perspectives and Impact

Liquidity as a MOAT

Hyperliquid’s main competitive advantage in the long run is instant access to the liquidity layer, an infrastructure that supports billions in daily volume and open interest, unambiguously rivaling centralized exchanges.

One of the main problems for new protocols, blockchains, or decentralized applications is the need to attract liquidity. This often requires deals with market makers, temporary incentive programs, or massive token inflation, but the result is rarely guaranteed.

Hyperliquid doesn’t offer grants, acceleration programs, or marketing support to builders: it provides immediate access to high-performance infrastructure and a deep order book. If a builder can truly innovate and create value, they’ll be naturally rewarded with ongoing revenue.

Liquidity is Hyperliquid’s MOAT, but it’s likely others will try to replicate the model. Still, as long as they haven’t built infrastructure capable of attracting and retaining liquidity, network strength will remain with Hyperliquid. As more builders accumulate, Hyperliquid’s ecosystem becomes a black hole dense enough that even new entrants will struggle to compete.

What about HyperEVM?

HyperEVM is often criticized as “just another layer 2,” whose technical capabilities don’t even allow it to compete with networks like Base, Solana, or MegaETH. This is mostly due to a misunderstanding of HyperEVM’s role within the Hyperliquid ecosystem, especially given the lack of foundation-level communication on the subject.

“Other L2s or alt-L1s need to bootstrap their own liquidity, while HyperEVM applications access the spot and perps market liquidity and billions in open interest and daily volume.” – @androolloyd, CEO of HypurrFi.

Liquidity is the central resource of any on-chain finance ecosystem, and HyperEVM natively benefits from it via Hyperliquid especially since the introduction of CoreWriter, which enables full composability between both execution layers.

“The main advantage of HyperEVM is the ability to natively interact with HyperCore. The best analogy is to imagine if BNB Chain had native composability with the Binance exchange.” – @0xNessus, CEO of Hyperlend.

At the time of writing, HyperEVM shows a bit more than $2 billion in TVL, ranking it 10th among blockchains on this metric. Here are the main protocols:

• Hyperlend (lending): $568M
• Morpho (lending): $557M
• Kinetiq (liquid staking): $522M
• Stakedhype (liquid staking): $416M
• Felix (CDP): $357M
• HypurrFi (lending): $333M

Further down the list, we also see Hyperbeat (yield aggregator) with $146M in TVL, and Hyperswap (DEX) with $100M in TVL. Note that the main protocol in the ecosystem, Unit (a tokenization layer, mainly used for spot markets), is not listed on data platforms.

Revenues and HYPE Buybacks

In just a few months, Hyperliquid has become one of the industry’s most profitable protocols. With around $875 million in annualized revenue, Hyperliquid is currently ranked third behind Circle and Tether.

Over the last 30 days, Hyperliquid has generated $73 million in revenue, with a clear acceleration recently and peaks of more than $5 million per day. But the most important aspect is the buyback mechanism, mainly orchestrated by the Assistance Fund, which has now bought over $1.18 billion worth of HYPE via protocol fees (a bit more than $400 million in total).

Hyperliquid’s model brings a major advantage: economic alignment between the protocol and its builders. Each new builder brings activity that increases Hyperliquid’s revenues, while enabling builders to generate steady income from day one, without having to pay to attract liquidity or manage costly incentives.

Right now, it’s hard to estimate the impact HIP-3 will have on Hyperliquid’s revenues—other than they will grow, and the module requires a 1 million HYPE staking commitment. Still, it’s possible to look at the potential impact of Builder Codes, using the Phantom example.

On July 9, 2025, Phantom announced the launch of perps for wallet users via an integration of Hyperliquid’s Builder Codes. In just two weeks, Phantom generated more than $700,000 in revenue—about $8.6 million annualized. With over 15,000 unique users onboarded to Hyperliquid, that’s about $46 per user.

In a 2024 report, Phantom claimed 15 million monthly active users and $20 billion in annual swap volume. In a recent study, our partners at GLC Research estimated that, using a conservative 50% spot-to-perp ratio, this would mean more than $40 billion in volume executed via Hyperliquid.

Since Hyperliquid charges a 0.045% fee on this volume, it would mean a $15 to $30 million increase in total Hyperliquid revenue—just from the Phantom integration.

Beyond showcasing the flywheel that integrating new builders into Hyperliquid creates, the Phantom case demonstrates the strength of Hyperliquid’s MOAT. Instead of choosing Jupiter or Drift to power perps, Phantom opted for the most efficient and profitable infrastructure for them.

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Final Notes

This research is the result of long discussions and deep dives with ecosystem builders, all aimed at understanding the technical and economic dynamics driving Hyperliquid. Naturally, it reflects my own opinion, and as a HYPE holder, I felt it was important to clarify that.

It’s been a long time since I’ve seen an ecosystem offer something so fundamentally different; technologically, economically, and philosophically. I remain convinced that what’s being built around Hyperliquid will have a major impact on the industry and deserves to be closely studied.

We hope you enjoyed this research. If you did, you can support us by using our Hyperliquid referral link (code OAKGLC), and by following us on our X account. Thank you in advance, and see you soon.