# Overview **Welcome to the core of Hyperliquid’s technology stack!** Here, we’ll provide both a high-level overview and a deeper technical dive into the blockchain, its consensus mechanism, and the native components that make Hyperliquid a high-performance and innovative ecosystem. ### High-Level Diagram

Hyperliquid = HyperCore + HyperEVM

### Core Components #### **HyperBFT Consensus:** * A consensus algorithm that ensures network nodes agree on the current state of the blockchain. * Permissionless network - anyone can become a validator, with the number of active validators increasing over time, making decentralization increasingly real * The codebase for the Hyperliquid L1 has not yet been publicly released but will be when it's secure to do so. #### HyperCore**:** A **custom, from-scratch Layer 1 blockchain** designed to power Hyperliquid’s flagship application—its decentralized exchange (DEX). It aims to achieve **up to 200,000 TPS** and **latency under 0,1 second**, far surpassing traditional blockchain performance metrics. **Divided into Six Primary “Blocks”:** 1. **Native Order Book:** * **Fully On-Chain:** All orders, trades, funding rates, and liquidations are recorded transparently on-chain. * **Gas-Free Orders & Leverage:** Place orders without gas fees and access up to **40x leverage** on perpetuals. * **Seamless UX:** One-click trading without repeated wallet approvals for a streamlined experience. 2. **Clearinghouse** * **Core Exchange State Management:** The Clearinghouse manages all user states for both perpetual and spot trading. * **Perpetuals:** Handles cross-margin balances and positions, with optional isolated margin support to allocate specific collateral to individual positions, reducing risk exposure. * **Spot Trading:** Similarly manages token balances and holds for spot trading, ensuring accurate and efficient account states across the platform. 3. **Oracles:** * **Accurate Market Data:** Integrated price feeds ensure reliable and fair pricing for both spot and perpetual markets. * **High-Frequency Updates:** Updated rapidly to match the speed and precision of Hyperliquid’s platform. 4. **Vaults:** * **Liquidity & Protection:** Mechanisms like **HLP** (Hyperliquid Liquidity Provider) tokens and an **AF** (Assistance Fund) safeguard against volatility and liquidation risks. * **Fee Redistribution:** Trading fees are redistributed to liquidity providers, creating strong incentives for market participation. 5. **Spot Tokens (HIP-1 & HIP-2)** * **Easy Token Launches (HIP-1):** Deploy native spot tokens with a built-in on-chain order book for transparent, secure trading from day one. * **Integrated Liquidity (HIP-2):** Achieve “Hyperliquidity” with a mechanism inspired by Uniswap, tailored for order-book trading, ensuring dynamic and reliable liquidity for smoother price discovery. 6. **Multi-Sig:** * **Native multi-signature support** built directly into HyperCore as a blockchain primitive, not requiring smart contracts * **Enhanced security** through multiple private keys controlling a single account with customizable signature thresholds * **Flexible configuration** allowing up to 10 authorized users per multi-sig account with updateable permissions #### **HyperEVM:** * The HyperEVM layer enables users to build and deploy their own applications, launch tokens, and access all of these financial primitives in one unified environment. * High performance, native financial components, and EVM compatibility make it possible to build apps that require all three: **performance**, **liquidity**, and **programmability** in one place.