Key Takeaways
- HIP-3 is a new Hyperliquid standard that lets builders create their own perps.
- RedStone deployed the first HIP-3 oracle on Wednesday, Nov.5.
- Hyperliquid is evolving into a fully permissionless perpetual futures exchange.
Although Hyperliquid relies on a decentralized and broadly permissionless infrastructure, the project’s core team initially retained control over which contracts could be listed on the platform.
But a new standard, HIP-3, changes that.
With HIP-3, anyone can deploy perpetual markets based on oracle feeds, with RedStone launching the first HIP-3 oracle, Hyperstone, on Wednesday, Nov. 5.
What Is HIP-3?
HIP-3 is a new market framework on Hyperliquid that lets builders create their own perpetual markets.
Unlike standard Hyperliquid perps, which establish pricing by validator consensus, HIP-3 markets rely on oracles for price accuracy, enabling the platform to support perpetual markets for virtually any asset.
This shift unlocks creativity, but also raises the stakes.
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The Need for Trusted Oracles
If users are to trust oracles, they need to update quickly and securely to maintain accurate pricing. This is where HyperStone comes in.
RedStone is a specialist provider of blockchain oracles that are capable of delivering the throughput required for high-volume trading.
Its price feeds cover more than 1,300 assets, aggregating data from over 50 sources, including all the major centralized and decentralized exchanges.
Prior to launch, the company deployed HyperStone on two testnet markets, delivering over 103 million data updates to two testnet markets tied to ETH, BTC, and Tesla stock.
RedStone oracles are already embedded in the Hyperliquid ecosystem, where they underpin the network’s native stablecoin, USDH.
In a statement shared with CCN, the company claimed to have secured roughly 99.5% of the oracle-protected value on HyperEVM.
Toward Non-Crypto Perpetuals
By opening up Hyperliquid to third-party deployers, HIP-3 is expected to pave the way for a more diverse range of perpetual markets.
Technically, there is no reason the existing validator-driven consensus model couldn’t support non-crypto assets.
However, crypto assets offer the most natural fit for the model, given that price discovery is already decentralized and permissionless.
In contrast, price discovery in traditional markets is tightly regulated and relies on a handful of large exchange operators who license out their data.
“HIP-3 gives builders the freedom to launch markets without gatekeepers,” RedStone Co-Founder Marcin Kaźmierczak said in a statement.
As more oracles deploy the new standard, the current model, in which the Hyperliquid core team decides which assets to support, could soon be replaced by a fully permissionless marketplace.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
