How HIP-3 Works

What is HIP-3 and How It Powers HyENA

HyENA is built on HIP-3, the Builder-Deployed Perpetuals framework introduced by Hyperliquid. HIP-3 enables independent teams to launch and operate their own perpetual DEXs directly on the Hyperliquid network, without relying on centralized listings or manual approvals.

Under HIP-3, builders stake HYPE tokens to gain deployment rights and responsibility for their markets. This stake ensures accountability: if a builder behaves maliciously or violates protocol standards, their stake can be slashed by validators through governance.

Each builder-deployed DEX — including HyENA — has full control over its own market configurations, such as oracle sources, leverage parameters, fee rates, and open-interest caps. Builders can also halt or settle markets safely when needed, ensuring flexible but secure operations.

HyENA participates in Hyperliquid’s shared Dutch auction system, which regulates deployment costs and maintains fairness across all builder DEXs. Traders on HIP-3 DEXs pay standard protocol fee, a portion of which is shared with the deployer to align long-term incentives (see: Fees)

By leveraging HIP-3, HyENA can:

• Launch new USDe-based perpetual pairs quickly

• Introduce new trading and reward mechanisms to Hyperliquid

• Operate transparently on-chain while maintaining protocol-level security

In short, HIP-3 decentralizes perpetual market creation, allowing trusted builders like Based with support from ecosystem stakeholders like Ethena to bring innovative products — such as HyENA — directly to the Hyperliquid ecosystem.