Decentralized exchange Hyperliquid is further expanding its innovative derivatives offerings with the listing of PUMP-USD, a new "hyperp" that allows users to long or short the unlaunched $PUMP token with up to 3x leverage. Announced on Thursday, this product broadens speculative access to assets yet to formally launch, building on Hyperliquid's momentum in the on-chain derivatives market.
Unlike traditional futures, hyperps on Hyperliquid do not rely on external oracles for pricing. Instead, they utilize a moving average of their own mark price to calculate funding rates. This unique design aims to enhance the stability of pre-launch trading and reduce the risk of price manipulation. However, the platform has cautioned users that funding rates can fluctuate sharply during periods of strong directional momentum, effectively rewarding traders who bet against the prevailing trends.
Hyperliquid's pre-market PUMP-USD trading volume has already exceeded $21 million. The product's price surged to $0.015 at its opening today and is currently quoted at $0.0055.
While PUMP-USD offers new trading opportunities, Hyperliquid has explicitly flagged it as a high-risk product due to its low liquidity, high volatility, and potential for extreme funding costs. To mitigate some of these risks, traders are limited to using isolated margin and low leverage. The contract is designed to convert into a standard perpetual contract once the $PUMP token is officially listed on a centralized exchange.
This listing further solidifies Hyperliquid's dominant position in the decentralized derivatives market. In June, the platform reported an astounding $214 billion in trading volume, according to Dune data. This figure surpassed the combined volume of all other on-chain perpetual protocols, and pushed Hyperliquid's share of Binance's perpetual market above 10%, up from 9.76% in April. The exchange now accounts for over 70% of all decentralized perpetual trading volume.
Beyond its impressive trading volumes, Hyperliquid allocates 97% of its protocol fees to buybacks of its native token, HYPE. This mechanism is designed to reduce token supply and align incentives with platform activity. With $3.5 billion in bridged Total Value Locked (TVL) and half a million users, Hyperliquid currently ranks as the eighth largest blockchain by TVL, according to DefiLlama figures.
The introduction of risk-heavy hyperps like PUMP-USD appears to be a calculated move within Hyperliquid's broader strategy to capitalize on speculative flows while maintaining tight control over its platform mechanics. Hyperliquid strongly advises users to thoroughly review its documentation before engaging in these contracts, emphasizing that the mechanism differs from traditional perpetuals and may not be suitable for all traders.
July 2025, Cryptoniteuae