{"id":92683,"date":"2025-12-26T16:08:46","date_gmt":"2025-12-26T13:08:46","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=92683"},"modified":"2025-12-26T16:10:20","modified_gmt":"2025-12-26T13:10:20","slug":"expert-warns-of-slashing-risks-and-losses-in-hyperliquids-new-markets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/expert-warns-of-slashing-risks-and-losses-in-hyperliquids-new-markets\/","title":{"rendered":"Expert Warns of Slashing Risks and Losses in Hyperliquid&#8217;s New Markets"},"content":{"rendered":"<p>Custom markets on <a href=\"https:\/\/forklog.com\/en\/news\/the-price-of-popularity-and-a-lesson-for-all-hyperliquid\">Hyperliquid<\/a> face fundamental scalability limitations and carry excessive risks, according to a <a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">DeFi<\/a> analyst known as Jordi.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">HIP-3 markets are not sustainable.<\/p>\n<p>While everyone is hyped about permissionless markets, we need to talk about the math. <\/p>\n<p>Delegating <a href=\"https:\/\/twitter.com\/search?q=%24HYPE&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$HYPE<\/a> to third-party deployers for LSTs isn&#8217;t just about yield; it&#8217;s about taking on massive risks: locked capital, slashing, and conflict of\u2026 <a href=\"https:\/\/t.co\/YzFZozJaSS\">https:\/\/t.co\/YzFZozJaSS<\/a> <a href=\"https:\/\/t.co\/eHfuujJUcR\">pic.twitter.com\/eHfuujJUcR<\/a><\/p>\n<p>\u2014 Jordi in Cryptoland (@lordjorx) <a href=\"https:\/\/twitter.com\/lordjorx\/status\/2004264631875809550?ref_src=twsrc%5Etfw\">December 25, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>As part of the <span data-descr=\"Hyperliquid Improvement Proposal\" class=\"old_tooltip\">HIP<\/span>-3 update, the platform allowed users to launch synthetic perpetual contract markets. To do so, they must <a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">stake<\/a> 500,000 HYPE. All trading fees are distributed among participants.<\/p>\n<p>Thus, Hyperliquid has created a new layer \u2014 <span data-descr=\"translated as 'exchange as a service'\" class=\"old_tooltip\">Exchange-as-a-Service<\/span>. In this model, numerous independent operators compete for traders using a unified infrastructure, experts from ether.fi <a href=\"https:\/\/x.com\/etherfi_VC\/status\/1998394930117444040\">noted<\/a>.<\/p>\n<p>At the time of writing, four segments <a href=\"https:\/\/forklog.com\/en\/news\/hyperliquids-custom-markets-surpass-500-million-in-daily-turnover\">operate<\/a> on the platform: xyz (trade.xyz protocol), flx (Felix Protocol), vnti (Ventuals), and hyna (HyENA). They focus on <a href=\"https:\/\/forklog.com\/en\/news\/what-are-tokenised-assets\">tokenized<\/a> shares of tech companies, stock indices, experimental assets, and cryptocurrencies with leverage up to 25x.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"453\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858-1024x453.png\" alt=\"image\" class=\"wp-image-272601\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858-1024x453.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858-300x133.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858-768x340.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858-1536x680.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-159e09c54745c52c-1970664446248858.png 1590w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Hyperliquid.<\/figcaption><\/figure>\n<p>According to Jordi, delegating HYPE to third-party developers for creating <a href=\"https:\/\/forklog.com\/en\/news\/what-is-liquid-staking\">liquid staking<\/a> tokens (LST) is not only about potential income but also involves significant risks: capital lock-up, slashing risk, and conflict of interest.<\/p>\n<p>The main issue with synthetic markets on Hyperliquid lies in the yield mathematics. Native staking of HYPE yields about 2.2% annually, while complex leveraged strategies offer double-digit figures.<\/p>\n<p>To remain competitive, new LSTs on HIP-3 must offer yields around 20-30% <span data-descr=\"annual percentage yield\" class=\"old_tooltip\">APY<\/span>. However, ensuring such payouts requires an &#8220;astronomical&#8221; trading volume. As the price of HYPE rises, the required turnover increases exponentially.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"479\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e7ffe1a2c08bc093-1970688186036328-1024x479.png\" alt=\"image\" class=\"wp-image-272602\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-e7ffe1a2c08bc093-1970688186036328-1024x479.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-e7ffe1a2c08bc093-1970688186036328-300x140.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-e7ffe1a2c08bc093-1970688186036328-768x359.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-e7ffe1a2c08bc093-1970688186036328.png 1335w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The relationship between HYPE price and required daily trading volumes to achieve target APY. Source: X.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We demand volumes from small delegates comparable to those of centralized exchanges to justify the retail premium. Without a complete overhaul of the fee distribution model or risk model, many of these HIP-3 projects will face <span data-descr=\"Fear, uncertainty and doubt\" class=\"old_tooltip\">FUD<\/span> or simply shut down,&#8221; Jordi emphasized.<\/em><\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Figures<\/h2>\n<p>The total trading volume on custom HIP-3 markets has exceeded $11.69 billion. In the last 24 hours, the figure was $153.5 million, peaking at $525.9 million.<\/p>\n<p>The majority is accounted for by tokenized indices (68.3%), followed by stocks (25.8%).<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"632\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557-1024x632.png\" alt=\"image\" class=\"wp-image-272603\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557-1024x632.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557-300x185.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557-768x474.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557-1536x948.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-96100db30c6798cb-1970716628422557.png 1822w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/dune.com\/yandhii\/hip3\">Dune<\/a>.<\/figcaption><\/figure>\n<p>At the time of writing, the &#8220;synthetic&#8221; segment&#8217;s share of Hyperliquid&#8217;s total turnover is 4.4%.<\/p>\n<p>The total generated fees have exceeded $1.7 million, with open interest at $256.9 million.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"507\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561-1024x507.png\" alt=\"image\" class=\"wp-image-272604\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561-1024x507.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561-300x149.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561-768x380.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561-1536x760.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-9746db90b6b02a41-1970747539431561.png 1818w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: Dune.<\/figcaption><\/figure>\n<p>Back in December, Hyper Foundation <a href=\"https:\/\/forklog.com\/en\/news\/hyper-foundation-proposes-1-billion-hype-token-burn\">proposed<\/a> burning $1 billion worth of HYPE tokens.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Custom markets on Hyperliquid face fundamental scalability limitations and carry excessive risks, according to DeFi analyst Jordi.<\/p>\n","protected":false},"author":1,"featured_media":92684,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Custom markets on Hyperliquid face scalability limits and risks, says DeFi analyst Jordi.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[787,1823,1138],"class_list":["post-92683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dex","tag-hyperliquid","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"206","promo_type":"1","layout_type":"1","short_excerpt":"Custom markets on Hyperliquid face scalability limits and risks, says DeFi analyst Jordi.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=92683"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92683\/revisions"}],"predecessor-version":[{"id":92685,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/92683\/revisions\/92685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/92684"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=92683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=92683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=92683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}