Hyperliquid’s HIP-3 Democratizes Perpetual Futures Listings with $20M Staking Requirement

Hyperliquid's HIP-3, launched on mainnet in October 2025, has introduced a groundbreaking model for perpetual futures markets. Any builder can now deploy these markets without committee approval, provided they stake 500,000 HYPE tokens—equivalent to roughly $20 million—as collateral against malicious behavior. This move aims to democratize DeFi but raises questions about the robustness of its safeguards.

The protocol enforces strict penalties for misconduct. Validators can slash part or all of a builder's stake if they manipulate prices, operate recklessly, or threaten network solvency. Even during the seven-day unstaking period, collateral remains vulnerable. Slashed HYPE tokens are burned, eliminating incentives for false accusations.

Oracle manipulation risks loom large. Builders control their market's price oracle and update logic, opening the door to vulnerabilities like the $112 million Mango Markets exploit in 2022. Hyperliquid counters this by requiring substantial staking and implementing sanity checks through price indices and validator oversight.