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.