HIP-3, powered by TradeXYZ, became the 10th most traded asset on Hyperliquid in the past 24 hours.
Hyperliquid’s HIP-3 upgrade, which enables permissionless perpetual markets, was launched two weeks ago, and TradeXYZ’s XYZ100 market is gaining momentum, breaking into the exchange’s top 10 assets by daily volume, even as competitors debate its efficiency.
TradeXYZ is a permanent division of Unit, a Hyperliquid tokenization layer. The protocol’s XYZ100 market was the first HIP-3 deployment to track Nasdaq futures, one of traditional finance’s largest stock indexes.
After a short sign-up and introductory campaign, TradeXYZ has gradually begun rolling out platform access to queue users and went live on the Hyperliquid frontend this weekend, resulting in a significant spike in volume and open interest. In the past 24 hours, XYZ100 generated a volume of $72 million with an open interest of $55 million.
To meet demand, the platform has had to repeatedly raise its open interest limit from just $25 million on October 22 to $60 million now.
However, it is worth noting that despite the platform’s success in the niche tokenized stock futures market, its trading volume is still a drop in the bucket compared to traditional markets. The trading volume of E-mini Nasdaq 100 (NQ) futures contracts tracked by XYZ100 exceeded $225 billion on October 2nd.
Flood, a crypto investor who has been an avid Hyperliquid supporter since before TGE, called this “a true zero-to-one moment for global finance.”
“There is no other place in the world where you can trade stocks on-chain, on CLOB, 24/7, 365 days a year, without permission. This is the only relevant stock market in the world that is open all weekend. There are hundreds of millions of households around the world who want access to stocks but don’t, and this will be the only way they can get exposure,” he added.
The launch generated a lot of buzz in both DeFi and traditional finance circles, with prominent research and trading firm Citorini publicly using Hyperliquid to trade XYZ100 over the weekend.
However, there has been pushback from some crypto natives, particularly those working on Ostium, a tokenized equity platform, regarding the fluctuations in Hyperliquid’s funding rate.
Caledra Keenan-Lynn, co-founder of Ostium Labs, caused a stir at X by questioning the feasibility of the funding rate. While Hyperliquid maxis was quick to pounce, Keenan-Lin later clarified his position, saying, “I’ve been vocal about this for a long time, and I think it’s fair to reiterate that HL is a great product. It works very well for cryptocurrencies. I just don’t think it’s the right architecture to bring TradFi assets on-chain.”
“I believe the correct model is to quote directly from the underlying market, similar to a decentralized broker, rather than trying to recreate limited order book liquidity from scratch natively on-chain at the exchange layer. I am confident that ultimately the market will prove this proposition correct,” she concluded.
Ostium remains one of the largest venues for trading tokenized stocks on-chain, with $246 million in open interest across its assets.