Hyperliquid introduces HIP-3 growth mode, reduces fees by 90%

Hyperliquid, the leading on-chain decentralized exchange, has introduced an exciting update that makes it easier, cheaper, and faster for anyone to launch new markets. This is aimed at lowering the barrier to entry and bringing more activity and liquidity to the platform, causing a lot of interest in the cryptocurrency community.

This also opens the door to unusual niche markets and drives innovation in areas that traditional exchanges often overlook.

What is growth mode?

HIP-3 introduces a “growth mode” for assets. Adopters can enable this feature individually for each asset and no permissions are required. This means anyone can activate it without requiring approval.

Once growth mode is activated, transaction costs will drop significantly. Taker fees, rebates, and volume-based contributions will be reduced by at least 90%. Notably, growth mode is applied in addition to other multipliers such as stablecoin collateral fee benefits and staking discounts.

In growth mode, typical taker fees drop from around 0.045% to 0.0045-0.009%, 5-10 times lower. Additionally, for adjusted collateral assets, the fees are even lower, ranging from 0.0036 to 0.0081%. At maximum volume and staking tiers, fees can be as low as approximately 0.00144-0.00288%.

Growth mode parameters can also be adjusted based on community feedback.

Growth mode eligibility

There are two main rules for growth mode. Deployer price scale must be between 0 and 1. This is the percentage of user fees that the deployer retains before any other discounts. There is also a 30 day cooldown per asset after turning on growth mode.

Second, the market must be completely separate from the existing permanent market operated by validators. Ineligible markets include PERPs of cryptocurrencies that use other collateral, PERPs of crypto indexes, ETFs, or other crypto ETF baskets, PERPs of combinations of crypto assets, PERPs of vehicles or wrappers that primarily hold crypto assets, and PERPs that track the gold price since PAXD-USDG already tracks the gold price.

Community reaction

This caused great excitement in the cryptocurrency community.

One user said Hyperliquid is about to start a PERP trading revolution, calling it a “turbo boost of innovation in the fastest L1 of derivatives.”

“We are talking about bringing in wild assets that validators have never touched: real-world yields, exotic goods, treasuries tokenized in STEROIDS, and at a cost 5-10x lower than traditional chains.” he said.

He said traders should expect high volume and ultra-thin spreads, but HYPE holders could also make huge profits as HyperLiquid strengthens its position in the derivatives space.