As the Hyperliquid blockchain grows, upgrades like builder-deployed perpetuals and token standards keep rolling out, but the process behind them often stays in the shadows. That’s where Hyperliquid Improvement Proposals (HIPs) come in. They’re the silent mechanism steering Hypercore**, **Hyperliquid RPC nodes, and more. Once you understand them better, every technical release makes more strategic sense.
What are Hyperliquid Improvement Proposals (HIPs)?
Hyperliquid Improvement Proposals (HIPs) are how the protocol upgrades itself cleanly, modularly, and without requiring forks. Each HIP introduces a focused change to core infrastructure, smart contract logic, or developer tooling. These proposals are authored by builders, reviewed by the community, and implemented directly into the Hyperliquid stack via Hypercore.
As of mid-2025, three HIPs have been proposed and implemented:
HIP‑1: Native Token Standard
HIP‑2: Hyperliquidity and Builder-Deployed Perpetuals
HIP‑3: Improvements to Hyperliquid RPC node infrastructure
These define how the Hyperliquid blockchain grows without halting the chain or pushing upgrades off-chain. Let us now understand each in detail:
HIP‑1: Native Token Standard (November 2023)
The first Hyperliquid Improvement Proposal, or HIP‑1, introduced a formal token standard to Hyperliquid blockchain, beginning with its native HYPE token and extending to other assets like the PURR memecoin, making them fully compatible with Hypercore.
What are the key elements?
Unique asset ID: ensures each token is distinct on-chain
Fungibility flag: signals whether tokens are interchangeable or unique
Rich metadata: includes name (“HYPE” or “PURR”), symbol, and decimal precision
When PURR launched as the first HIP‑1 token in April 2024, it immediately activated its spot market with order-book support without any custom setup. That smooth launch showed how HIP‑1 empowered tokens to work directly on Hypercore, enabling spot trading, staking, and tooling from day one.
HIP‑2: Hyperliquidity (March 2024)
HIP‑2 is one of the more groundbreaking Hyperliquid Improvement Proposals (HIPs), as it introduced Hyperliquidity, an on-chain liquidity mechanism built right into Hypercore. It automatically places buy and sell orders around a token’s current price, keeping a tight, ~0.3% spread without manual effort.
What are the main traits?
Fully permissionless, on-chain, and validator-secured
No AMMs or third-party bots
Built into the block logic for native performance
HIP-2 implementation
Real example: When the PURR/USDC spot market launched, Hyperliquidity seeded initial depth instantly, allowing real trades before human liquidity arrived.
HIP‑3: Builder‑Deployed Perpetuals (May 2025)
HIP‑3 enables anyone to launch their on‑chain perpetual markets directly on Hypercore, using HYPE for deployment gas.
How does it work?
Deployers define the market (asset, oracle, fees)
Gas is paid via a 31‑hour Dutch auction in HYPE
Creators can earn up to 50% fee share
Requires a 1M HYPE stake to prevent spam
Validators can slash bad actors during a 7-day unstaking period
HIP‑3 is live on testnet, where community members have launched experimental perps (e.g., synthetic indices, niche assets). Mainnet deployment is pending.
Perp Listing Flow based on HIP-3
How it works: Dutch auctions begin at a high price and decrease over time until someone accepts the current price. This approach helps surface fair market value and avoids bidding frenzies. On Hyperliquid, it’s part of the mechanism to launch assets fairly, reinforced by a 1M HYPE stake requirement.
Why HIPs Matter for Hyperliquid
Every blockchain needs a way to grow, but most rely on governance overhead, off-chain proposals, or full protocol forks. Hyperliquid Improvement Proposals (HIPs) solve that differently by embedding the upgrade logic directly into Hypercore and making change modular, reviewable, and immediate.
Whether it’s launching new tokens (via HIP‑1), seeding liquidity (via HIP‑2), or testing permissionless market creation (via HIP‑3), HIPs show how protocol decisions can be made with builder intent, not a bureaucratic process. For developers, this means faster iterations. For the chain, it means upgrades that don’t break things; they compound.
Closing Thoughts: Hyperliquid Improvement Proposals (HIPs)
The three Hyperliquid Improvement Proposals (HIPs) introduced structure, liquidity, and permissionless market creation. They set the foundation, but they’re only the beginning. As Hyperliquid blockchain grows, upcoming proposals will likely focus on risk engines, oracles, and validator tooling. The goal is to push more logic on-chain and remove friction across the stack.
HIPs are your starting point if you're building on Hypercore or watching RPC developments. They don’t just describe changes. They show how the network thinks and where it’s going. Each one is a signal of what comes next.
FAQs (kindly number this section as the number format is not working dont include this copy in FAQs)
1. How are HIPs approved in the Hyperliquid ecosystem?
There’s no DAO vote or foundation sign-off. HIPs are reviewed by core builders and evaluated based on technical merit, impact, and code-readiness, then deployed natively.
2. Can external developers propose a HIP?
Yes. While most HIPs have come from the core team, any builder with a strong case and working code can publish one.
3. Where can I track upcoming or proposed HIPs?
The best place is the Hyperliquid Protocol Page or the official Discord. Early-stage drafts and timelines are shared there first.
4. Can developers outside the core team contribute to HIP implementations?
They can. Most early HIPs came from Hyperliquid’s core team, but the door’s open for others, too. As long as a proposal gains support and clears the usual steps, like community feedback, testing, and governance, it can move forward. Independent builders can contribute at any stage, from writing code to stress-testing updates. It’s all part of making the protocol more open over time.
