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Hyperliquid has become the dominant venue for onchain perpetuals, leapfrogging dYdX by embracing a radical idea: full transparency. Every resting order is hash-linked to a wallet, whose P&L and liquidation level are visible to the network. This “L4” order book is more granular than TradFi’s L3 venues, which conceal trader identity, positions or leverage levels.

Hyperliquid’s radically transparent market structure has no informational asymmetry between participants — and given its stellar growth, it’s working. But is it optimal?

Jeff Yan, the founder of Hyperliquid Labs, argues…

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