Hyperliquid Custom Market: The "Hot" Number But Concerns Still Exist

Hyperliquid’s custom markets are recording impressive figures with trading volumes exceeding $11.69 billion, but behind these numbers lie significant questions about sustainability and risk management that the community cannot ignore.

HIP-3 Model: Operating Mechanism and Capital Requirements

According to the HIP-3 proposal, anyone wishing to create a new market must stake 500,000 HYPE tokens. This mechanism aims to ensure participant commitment but also creates a substantial capital barrier. Currently, HYPE is trading at $24.34 with a 24-hour volume of $10.22 million, indicating market interest but also reflecting potential volatility.

Market creators will receive fees from the perpetual synthetic contracts they deploy. However, this model carries conflicts of interest, as developers may prioritize higher yields over user safety.

Concerns About Scalability and Risk Management

There are currently four active market segments, including tokenized stocks and leveraged crypto products. While the tokenized index accounts for 68.3% of total volume, this still raises concerns about risk concentration.

Safety concerns are not unfounded. With a model that allows anyone with sufficient capital to create markets, unlimited scalability could lead to liquidity fragmentation and increased complexity in systemic risk management. In particular, liquidations and margin calls could directly impact ordinary users.

Questions About Sustainability of Yields

Although the $11.69 billion trading volume sounds substantial, maintaining competitive annual percentage yields (APYs) depends entirely on actual trading volume. If liquidity drops or the number of markets spikes without a corresponding user base, advertised APYs could become “memes”—unrealistic figures that only exist on paper.

Hyperliquid’s custom markets are still in a major testing phase. While offering clear benefits through a decentralized platform, they also come with notable risks. Investors should exercise caution and thoroughly understand the operating mechanisms before participating.