Hyperliquid unveils HIP-3 growth mode, slashing fees by 90% to boost new markets
- Hyperliquid has launched HIP-3 growth mode, allowing permissionless market deployment with significantly reduced fees to enhance liquidity.
- The new feature reduces taker fees by over 90% for new markets, with fees potentially dropping as low as 0.00144% for top-tier traders.
- Growth mode requires markets to avoid overlap with existing assets and locks settings for 30 days to maintain stability.
Leading on-chain decentralized exchange Hyperliquid has introduced a new feature that lets anyone permissionlessly deploy new markets at ultra-low fees in a bid to boost liquidity, incentivize new market makers.
The upgrade, called HIP-3 growth mode, slashes all-in taker fees by over 90% for newly launched markets, and can be activated on a per-asset basis by deployers, permissionlessly and without centralized gatekeeping.
Under the upgrade, all-in taker fees plummet from the usual 0.045% to as low as 0.0045%-0.009%. At top staking and volume tiers, fees can shrink even further, reaching a shoestring 0.00144%-0.00288%, according to the official post.
The upgrade essentially lowers barriers to entry and trading costs with an aim to deepen liquidity and broaden asset offerings on Hyperliquid, strengthening its position as competitor to centralized avenues.
Taker fees are charges collected from traders who remove liquidity from the market by executing orders that immediately match existing orders on the order book.
To qualify, deployers must set their fee scale – the portion of user trading fees they retain before any discounts, such as those from aligned stablecoin collateral –between 0 and 1.
Besides, growth mode markets must avoid overlap with any existing validator-operated perpetuals, preventing “parasitic” volume, and must be distinct assets entirely. Examples excluded are crypto perpetuals, crypto indexes, ETFs, or assets closely tracking existing markets like the PAXG-USDC gold perp.
The growth mode, once switched on for an asset, locks for 30 days before changes can be made, ensuring market stability.
The announcement has spurred excitement on crypto social media, with users calling the growth mode "insanely bullish."
"This isn't just a tweak; it's a turbo-boost for innovation on the fastest L1 for derivatives. We're talking 5-10x lower costs than legacy chains, drawing in wild assets that validators never touched—real-world yields, exotic commodities, tokenized treasuries on STEROIDS. Deployers, get ready to flood the chain with alpha markets. Traders, brace for volume explosions and razor-thin spreads," one X handle said.
HYPE, the native token of Hyperliquid, is down 6%, trading below $40.
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CoinDesk Analysis Team
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