An expert warned about slashing risks and losses in the new Hyperliquid markets - ForkLog: cryptocurrencies, AI, singularity, future

# Expert Warns About Slashing Risks and Losses in New Hyperliquid Markets

User markets on Hyperliquid have fundamental scalability limitations and carry excessive risks. This conclusion was reached by DeFi analyst known as Jordi

HIP-3 markets are not sustainable.

While everyone is hyped about permissionless markets, we need to talk about the math.

Delegating $HYPE to third-party deployers for LSTs isn’t just about yield; it’s about taking on massive risks: locked capital, slashing, and conflict of… https://t.co/YzFZozJaSS pic.twitter.com/eHfuujJUcR

— Jordi in Cryptoland (@lordjorx) December 25, 2025

As part of the HIP-3 update, the platform allowed users to launch synthetic markets for perpetual contracts. To do this, they need to stake 500,000 HYPE. All trading fees are distributed among participants.

Thus, Hyperliquid has created a new layer — Exchange-as-a-Service. In this model, multiple independent operators compete for traders using a shared infrastructure, noted ether.fi experts.

At the time of writing, four segments are active on the platform: xyz (trade.xyz protocol), flx (Felix Protocol), vnti (Ventuals), and hyna (HyENA). They focus on tokenized shares of tech companies, stock indices, experimental assets, and cryptocurrencies with up to 25x leverage.

Source: Hyperliquid According to Jordi, delegating HYPE to third-party developers for creating liquid staking tokens (LST) involves not only potential income but also significant risks: capital lock-up, penalty risks, and conflicts of interest.

The main issue with synthetic markets on Hyperliquid lies in the mathematics of returns. Native staking of HYPE yields about 2.2% annually, while leveraged strategies provide double-digit returns.

To remain competitive, new LSTs on HIP-3 must offer yields around 20-30% APY. However, supporting such payouts requires “astronomical” trading volume. As HYPE price increases, the required turnover grows exponentially.

The ratio of HYPE price to required daily trading volumes to achieve the target APY. Source: X

“We require small delegates to handle volumes comparable to centralized exchanges to justify retail premiums. Without a complete overhaul of the fee distribution model or risk model, many of these HIP-3 projects will face FUD or simply shut down,” — Jordi emphasized.

Numbers

Total trading volume on custom HIP-3 markets exceeded $11.69 billion. In the last 24 hours, the figure was $153.5 million. At its peak, it reached $525.9 million.

Most of it comes from tokenized indices (68.3%). In second place are stocks (25.8%).

Source: Dune As of now, the “synthetic” segment accounts for 4.4% of Hyperliquid’s total turnover.

Total generated commissions exceeded $1.7 million, and open interest is $256.9 million.

Source: Dune Remember, in December, Hyper Foundation proposed to burn HYPE tokens worth $1 billion.