Decentralized Exchange Hyperliquid Airdrops 31% of Tokens to Community

Hyperliquid, a decentralized exchange (DEX) for perpetual futures trading, has successfully airdropped its native token, HYPE, to its community. The digital asset’s on-chain performance intrigued the crypto community on X, as many wondered how the DEX handled trading activities without the assistance of a centralized exchange.

What is Hyperliquid?

Aiming to “create a fair new financial system for all,” Hyperliquid offers its perpetual futures trading to over 224,200 users on its platform. Users can trade 146 digital assets with up to 50x leverage. Essentially, the DEX brings the features common to centralized crypto exchanges to traders, eliminating censorship and boosting decentralization.

The decentralized exchange lives on its layer-1 blockchain, Hyperliquid, while Tendermint is adopted as a consensus mechanism. Since its launch, many investors have resonated with the project. On-chain data shows that it has a total value locked (TVL) of over $1.4 billion. The project’s website reveals that it also has a daily traded volume above $1.8 billion.

Notably, Hyperliquid’s performance over the past few months has surpassed its rival, dYdX, another decentralized exchange that downsized its workforce a month ago.

HYPE Token Airdrop

Hyperliquid users accumulated points by using the trading platform in a points campaign that ended in May. Participants in the campaign received an airdrop of HYPE tokens at 7:30 UTC today in what the project called the Genesis event. The project allocated 31% of its total supply of 1 billion tokens for the airdrop. Undistributed tokens will be allocated for future emissions and community rewards. An additional 38.888% of the token’s supply will be dedicated to this purpose.

The Hyper Foundation, a non-profit organization developing the L1 blockchain, explained that “there are no allocations for private investors, centralised exchanges, or market makers.” The token will have diverse utilities within the Hyperliquid ecosystem, including staking and covering transaction fees.

Following its debut, HYPE has attained a fully diluted market capitalization of $4.39 billion and a 24-hour trading volume of $323.19 million. Its price at the time of writing sat at $4.39, representing a 37% surge in the past 24 hours. Since its debut, the digital asset’s price stability demonstrates that investors are buying more HYPE tokens.