Hyperliquid Research Collective (HRC)

Always a pleasure to cover Hyperliquid. Quarter after quarter, it keeps getting more exciting to follow. Q3 brought a lot of regulatory progress, and permissioned markets are coming. Volume rose 9.3% to $730.6B and revenue grew 21.7% to $190.9M, helped by two new streams: the USDC reserve yield, live since August 27, and priority fees. Annualizing September, Hyperliquid is now at roughly $1B in yearly revenue. If you haven’t kept up with everything that happened over the last three months, this is the piece to read to catch up. Hyperliquid.

Hyperliquid priority fees hit an all-time high this week. Annualized run rate: - 7-day average: $108.5M, up 86% from the previous high of $58.2M on September 24 - 30-day average: $64.2M Priority fees keep growing as a share of Hyperliquid’s revenue: around 5% of revenue in Q3, 6.2% over the last 30 days and 7.9% over the last 14 days.

Futures, not swaps. That was the question hanging over US perpetual derivatives all year. CME sued the CFTC arguing they are swaps. The SEC and CFTC asked whether equity perpetual derivatives are security futures or security-based swaps. Today the CFTC answered: single-stock perpetual futures are security futures, deemed approved under Regulation 40.3, and listable on exchanges registered with both the CFTC and the SEC. The CFTC deemed equity perpetual futures approved under Regulation 40.3, as security futures. For the first time, exchanges registered with both the CFTC and the SEC can list them. How we got here: • May 29: CFTC approves the first US bitcoin perpetual futures • Jun: SEC and CFTC jointly ask whether equity perpetual derivatives are security futures • Aug 19: Trump says the CFTC is working to bring Hyperliquid onshore • Aug 18 to 26: HPC and trade[XYZ] write to the SEC and the CFTC • Sep 15: CLARITY Act fails • Sep 16: Payward and Bitnomial propose a regulated HIP-3 route • Oct 26: Hyperliquid confirms Payward as the first HIP-3* deployer • Oct 29: ICE invests in trade[XYZ] to operate its regulated US markets (@elonmusk QT worth a mention) • Nov 3: CFTC approves equity perpetual futures The US route to Hyperliquid is taking shape. Thank you, @HyperliquidPC. Hyperliquid.

NYSE OWNER PLANS MARKET FOR HYPERLIQUID PERPETUAL FUTURES IN US (source @mlmabc)

Thank you, Jeff. Hyperliquid.

Come say hi and grab a piece of Hyperliquid history. Hyperliquid.

Tokenized equities and commodities on Hyperliquid are now cheaper to cross than the crypto perps sitting next to them. Final week of Q2, same rule on both books: ▫️Trade[XYZ] RWA markets: 3.57 bps median spread ▫️Hyperliquid crypto perps: 5.44 bps In Q1 the RWAs trailed, 6.2 vs 5.0. They crossed it in one quarter, while the market set nearly doubled to 84 contracts. Most of these contracts are months old, and the book they went through is one of the tightest in the industry. They win the median, not the tail: 16.1 bps at the 90th percentile against 11.1 for crypto: SP500 quotes at 0.14 bps, DKNG at 36.1 with nothing inside 10 bps, for example. Hyperliquid.

We feel genuinely fortunate to be the ones covering Hyperliquid and Trade[XYZ] this closely right now. Watching how fast things are moving has brought us real joy this quarter, and we don' t say that lightly. Nothing here is settled. Real risks remain around Hyperliquid, and the regulatory landscape is still being written in real time, so we won' t claim victory too soon. But what we can say with confidence is that Hyperliquid and Trade[XYZ] have outpaced any expectation anyone reasonably had for them, and did it through some of the toughest market conditions this year has produced. Seeing them consistently bring new growth drivers, new ways to create value for traders and investors everywhere, is not something we take for granted. What they are building is unprecedented in financial history, and we get to witness it happen. This is a story about rewriting the financial infrastructure the world has relied on for decades, and watching Hyperliquid and Trade[XYZ] change the playbook on what that infrastructure can even look like is genuinely amazing to be close to. We're grateful to be in this position, inside this ecosystem, watching it unfold right in front of us. And we're confident this is only the beginning: there is more to witness quarter over quarter, year over year, because this story is just getting started. Huge thanks to everyone involved within HRC for putting this together. Huge thanks to @guru__hl as well, @hl_eco clearly is the best partner we could have wished for. Hyperliquid.