I was an early investor in like 5 multi-billion perp dexs that Hyperliquid eventually vanquished. Plus many of the biggest CEXs. Here is exactly how HL won:
1. HLP: every winning perp exchange used an internal market maker. Liquidity is THE product, you can't outsource it. FTX <> Alameda is the infamous failure case, but Jeff also bootstrapped HL with his trading firm. He then took it to the next level by democratizing access to that internal MMer with HLP.
2. Centralization: they launched with a permissioned chain, with the team as sole validators. Competitors were messing around with experimental chains like Starknet and Solana, some parts on-chain and some off-, it was a mess. HL's approach was clean and fast, but also took major reg risk that a US team could never have done. But it paid off, because...
3. The best product: sorry to my founders, but HL was the whole package. The UX, the speed, the auto-margining⦠wow. CeFi-level trading experience.
4. Airdrop and VC-less fair launch: great narrative to give all tokens to the users and only the users. Thatās what crypto is about.
What is the best explanation for why HyperLiquid succeeded where so many other perp DEXes failed?
GMX, dydx, gains, vertex, there's a graveyard of chains that got traction and went first, why didn't any stick?