HIP-1 and HIP-2 define HyperLiquid’s native token standard and automated market making strategy. Together they enable permissionless token launches with guaranteed initial liquidity.Documentation Index
Fetch the complete documentation index at: https://hypernode-docs.polynode.dev/llms.txt
Use this file to discover all available pages before exploring further.
HIP-1: Native Token Standard
HIP-1 defines the native token format on HyperLiquid’s L1. Unlike ERC-20 tokens which live on the EVM, HIP-1 tokens are first-class L1 primitives with built-in orderbook trading.Token genesis parameters
Every HIP-1 token is created with these genesis fields:| Field | Description |
|---|---|
name | Token name |
weiDecimals | Decimal precision for the smallest unit |
szDecimals | Decimal precision for order sizing |
maxSupply | Maximum token supply |
initialWei | Initial supply in wei (smallest unit) |
anchorTokenWei | Anchor token amount for price discovery |
Deployment auction
New HIP-1 tokens are deployed through a Dutch auction mechanism. The auction starts at a high price and decays linearly over a 31-hour cycle (deliberately not 24 hours, so the cheapest window rotates globally across time zones). Starting price: 500 HYPE for spot pair deployment. See Gas Auctions for full auction mechanics.Token registry
All deployed tokens are tracked in theSpotClearinghouse, which serves as the canonical token registry. Token metadata, supply, and trading parameters are stored here.
HIP-2: Hyperliquidity
HIP-2 defines the Hyperliquidity strategy — an automated market making system that provides guaranteed initial liquidity for newly launched tokens.How it works
When a token launches, HIP-2 places a grid of resting orders on both sides of the order book using the following parameters:| Parameter | Description |
|---|---|
startPx | Initial price for the order grid |
nOrders | Number of orders on each side |
orderSz | Size of each individual order |
nSeededLevels | Number of price levels to seed initially |
Price formula
HIP-2 uses a recursive price formula to space orders geometrically:Update frequency
The HIP-2 strategy refreshes its orders on blocks with 3+ second intervals. This prevents excessive order churn while keeping the grid responsive to genuine price movements.Integration with HIP-3
HIP-3 (builder-deployed perpetuals) can enable growth mode which reduces fees by 90% for HIP-3 assets, incentivizing liquidity in newly deployed markets. The HIP-2 strategy works alongside HIP-3 to provide both spot and perpetual liquidity for new tokens.HIP-2 liquidity is protocol-provided, not user-deposited. The orders come from the protocol itself, ensuring every new token has a functioning market from the moment of launch.