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Hyperliquid Adds Optional Permissioned Markets via HIP-3 Framework

Created at 3 Sep · 2:06 PM1 source↑ Market-relevant
IN SHORT

Hyperliquid's HIP-3 framework is being expanded with optional features allowing independent teams to create permissioned markets using on-chain allowlists, giving deployers control over market access and operations.

Who's Involved

Hyperliquid
Platform expanding HIP-3 framework with optional permissioned market features
Jeffrey Yan
Co-founder of Hyperliquid
Payward
Parent company of Kraken, discussing separate crypto futures structure
Bitnomial
Regulated derivatives exchange involved in proposed crypto futures arrangement
Commodity Futures Trading Commission
US regulator to which Payward presented a proposed arrangement

↳ Why This Matters

The introduction of optional permissioned markets via HIP-3 allows for greater flexibility and control for independent market operators on Hyperliquid, potentially catering to specific regulatory or business needs. The separate discussions with Payward and Bitnomial signal potential pathways for regulated crypto derivatives access in the US.

Key facts

  • Hyperliquid's HIP-3 framework is being updated with optional features for permissioned markets.
  • Independent deployment teams can create markets using on-chain allowlists controlled by deployers.
  • The new features allow market operators to manage access controls and operations.
  • The HIP-3 upgrade is optional and does not impact existing markets.
  • A testnet version of HIP-3 has been released, with specifications subject to change.
  • Hyperliquid is also in discussions with Payward for a separate arrangement to offer crypto futures to US traders via Bitnomial, pending regulatory approval.

Hyperliquid is enhancing its HIP-3 framework by introducing optional features that will enable independent deployment teams to establish permissioned markets. These new capabilities allow for the creation of markets utilizing on-chain allowlists, granting deployers granular control over who can access and operate within their specific markets.

Jeffrey Yan, co-founder of Hyperliquid, stated that deployers or their designated sub-deployers will be responsible for managing these allowlists. This move empowers individual operators to dictate market participation. The upgrade remains optional, meaning existing HIP-3 markets will not be affected. Teams that do not require access restrictions can continue to operate under the current framework. Hyperliquid has already deployed an initial version of HIP-3 on its testnet, though the specifications are preliminary and may be refined based on community feedback.

The HIP-3 framework itself permits independent teams to launch perpetual futures markets on HyperCore without needing explicit approval from Hyperliquid's core development team. This allows deployers to manage crucial market parameters such as assets, oracles, leverage limits, and fee structures, while also retaining responsibility for market operations and settlements.

This extension of the HIP-3 model provides market operators with additional tools to comply with specific requirements for their deployments. Hyperliquid's role is to supply the underlying on-chain infrastructure, with independent deployers bearing the responsibility for their markets' operational integrity. The permissioned model is designed to facilitate access controls for deployments that necessitate them. However, the testnet design is not finalized, leaving room for potential technical adjustments before a broader release.

Hyperliquid positions itself as a neutral infrastructure layer for financial markets, ensuring that deployers using HIP-3 function as independent operators rather than being subject to Hyperliquid's direct management of access rules.

Separately, Hyperliquid Labs and Kraken parent Payward are engaged in discussions regarding a distinct structure that could introduce selected crypto perpetual futures to US traders through the regulated derivatives exchange Bitnomial. Payward has submitted this proposed arrangement to the Commodity Futures Trading Commission (CFTC), but any launch is contingent on regulatory clearance, which has not yet been confirmed. This proposed setup would enable eligible Bitnomial customers to trade specific crypto asset-linked futures utilizing Hyperliquid's technology. These discussions are independent of the HIP-3 testnet rollout, which focuses on optional permissioning tools for independent market deployers.

Frequently asked questions

HIP-3 is a framework on Hyperliquid that allows independent teams to launch perpetual futures markets without requiring approval from Hyperliquid's core development team.

The expansion adds optional features for permissioned markets, allowing deployers to use on-chain allowlists to control access and operations.

No, the new permissioned market features are optional and will not alter existing HIP-3 markets.

Hyperliquid is in discussions with Kraken's parent company, Payward, to potentially offer selected crypto perpetual futures to US traders through the regulated exchange Bitnomial, pending regulatory approval.

What Happens Next

01Specifications for HIP-3 on testnet may change based on feedback.
02Payward's proposed arrangement with Bitnomial awaits regulatory clearance from the CFTC.

How It Developed

Hyperliquid is expanding its HIP-3 framework with optional features for permissioned markets.
Independent deployment teams can create markets using on-chain allowlists.
Deployers or sub-deployers will manage these lists, controlling market access.
The upgrade is optional and will not affect existing HIP-3 markets.
Hyperliquid has released the first version of HIP-3 on testnet.
HIP-3 allows teams to launch perpetual futures markets without core team approval.
Deployers manage assets, oracles, leverage limits, and fee structures.
Discussions are ongoing with Kraken parent Payward for a separate structure to bring crypto perpetual futures to US traders via Bitnomial, pending regulatory approval.

Sources

T1
Hyperliquid Unveils HIP-3 Features to Enable Permissioned MarketsCoinGape

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