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Article

Level Up Your Copy Trades with Hyperliquid

This buzzy DEX has cool features and a points program to boot.
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Jun 3, 20243 min read

Hyperliquid wants to be your trading hub. The order book-based decentralized exchange with its own L1 aims to bring the usability of centralized exchanges to DeFi.

The platform recently launched its L1 points campaign, running through October. This campaign aims to attract more attention to the platform, which has already become one of the breakout exchanges for this cycle. Since the start of the year, Hyperliquid’s TVL has grown nearly 9x, becoming the go-to place for trading popular assets like memes or pre-market tokens. 

In this article, we’ll break down the core features of the exchange and explore what sets it apart! 👇


Hyperliquid's Core Features

Hyperliquid boasts a series of novel design features that aim to make its trading experience one of the best in DeFi. These include:

  • A Purpose-Built L1: The custom-built L1, optimized for high throughput and low latency, supports 20K orders per second with a median network latency of 0.2 seconds — critical for catching precise trade entries and exits. To further expedite opening and closing positions, Hyperliquid lets users trade with only one click.
  • Advanced Trading Options: The platform supports an extensive set of order types, including Market (buy or sell immediately at the current market price), Limit (buy or sell at a specific price or better), Scale (make multiple limit orders in a price range), Take Profit (executes when a specific profit level is reached), and Stop Loss (executes to limit losses when a specific price is reached) — among many more. Hyperliquid also offers API support for automated strategies.
  • Low Fees: Hyperliquid has a dynamic fee structure for whales based on their rolling volumes that starts at 0.035% taker fees for those doing less than $5 million in volume over a 14-day period.

These core features establish a strong base for Hyperliquid, setting the stage for its novel vault feature that enable users to earn yield through options like copying other users’ trading strategies.


Hyperliquid Vaults

One of Hyperliquid’s most distinguishing features is its User and Protocol vaults.

By depositing into a User vault, you’ll automatically copy all the trades made by the vault’s manager, sharing the profits and losses. It’s important to note that User Vaults have a 1-day withdrawal period.

To do this:

  1. Connect your wallet to the Hyperliquid platform and click “Vaults” in the top-left corner.
  1. Browse vaults to find one that’s performed well for over 30 days. Each vault’s historical trades, open positions, profits, and losses are publicly available for review.
  1. Once you find a vault, deposit funds to copy all that vault’s trades.

Meanwhile, Hyperliquid’s Protocol vaults provide lower-risk yield strategies like the “Hyperliquidity Provider” vault. This vault generates returns by market making, performing liquidations, and collecting protocol fees. The Hyperliquidity Vault has a 4-day withdrawal period.

Overall, Hyperliquid Vaults stand out as a unique feature that allows users to mirror trading strategies through User vaults or engage in lower-risk yield generation via Protocol vaults like the Hyperliquidity Provider.


Closing Thoughts

Hyperliquid combines the efficiency and user-friendliness of a trade-optimized L1 with competitive features such as advanced trading options, low fees, and unique vault mechanisms. 

Its User vaults allow users to mirror high-performing traders’ strategies without having to stay glued to their screens. At the same time, Protocol vaults also provide users with the option for more stable, lower-risk yield opportunities. 

With a growing TVL and a strategic points campaign, Hyperliquid is positioned as a leading platform for onchain trading this cycle.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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