How Hyperliquid become "Liquid as a service" ?
Recently, a series of large wallets
@Rabby_io ,
@phantom ,
@MetaMask ,
@rainbowdotme,
@coin98_wallet have integrated with
@HyperliquidX 's liquidity, allowing their users to trade derivatives markets using Hyperliquid's liquidity and they can earn an additional portion of profits from user transaction fees.
What is the technology behind it? It's "builder code"
But someone asked me how is it different from "ref code" and we often know of other exchanges. I paused for a few minutes, yes, so what is the difference.
First, let's clarify what "ref code" is?
When we create an account and use a "ref code" from someone, we will permanently attach our account to this "ref code". And the person with the "ref code" will have permanent rights with you, they don't need to do anything more. As long as you continue to trade, I will receive commission from you.
What about "builder code"?
"Builder code" is attached to each of your transactions, each of your transactions has a "builder code" from whom, the person has the right to collect additional transaction fees from you. This change compared to "ref code" creates flexibility for users and builders. On the same wallet, whoever you use the "builder code" from, that person receives additional transaction fees and can change at any time, what does this mean? For example, your A is using Rabby to trade perp, Rabby will collect transaction fees from the builder code, but if that same wallet A connects through Metamask and trades perp, Metamask will collect transaction fees from the builder code.
Just a little difference but creates a big change in the game.
"Liquid as a service"
HL is not only a derivatives exchange with large liquidity and trading volume, but they also aim to be a liquidity hub. When you want to start a new perp exchange instead of having to start liquidity which is extremely expensive, just build UI/UX and liquidity will be taken directly from HL, transaction fees will be collected by "builder code". An extremely cheap way to start liquidity and it is extremely suitable for supper apps. This combination helps both sides benefit. Supper app provides its users with the best service (HL has the best liquidity and speed in the market today) and HL has a huge number of users from these supper apps.
To evaluate the effectiveness of "builder code", look at this revenue table of dapps, a dream number for any perp dex exchange.
In my personal opinion, "builder code" is not an innovation, it just improves the usage of "ref code" but creates a whole new market, a liquidity market, turning liquidity into a service.
There are many reasons why I like Hyperliquid but one of the things I like about them is that they have a builder mindset. Look at their products, you can integrate it everywhere. From codewriter to code builder, open products for integration. Who wouldn’t want to integrate to a place with billions of dollars of liquidity and volume?