Hyperliquid L1
Hyperliquid L1 is a custom-built, high-performance blockchain designed specifically for a decentralized perpetual exchange. Unlike general-purpose blockchains, Hyperliquid's L1 is optimized for the low-latency matching of a central limit order book (CLOB).
Architecture and Performance
The network is capable of processing over 100,000 transactions per second (TPS) with sub-second finality. This performance is achieved by moving the matching engine—the part of the exchange that pairs buyers and sellers—directly into the L1's consensus layer. This eliminates the latency bottleneck found in many other decentralized exchanges.
The Role of Staking
The L1 is secured by HYPE stakers who delegate to a set of validators. These validators are responsible for ordering transactions and ensuring the integrity of the matching engine. This Proof-of-Stake mechanism provides the security foundation for billions of dollars in daily trading volume.
HyperEVM and Beyond
While the primary use case is the DEX, Hyperliquid has introduced the HyperEVM—an Ethereum Virtual Machine-compatible layer that allows developers to build other applications on top of the high-speed L1. This creates a broader ecosystem of financial products that can leverage the exchange's liquidity.
Technical Fact
Hyperliquid does not use a traditional gas model like Ethereum. Instead, it uses a credit system that prioritizes active traders and protocol participants, ensuring the order book remains responsive even during high volatility.