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How Hyperliquid Becomes the Backend for ALL of Finance | Tushar Jain

54 min

In this episode, Tushar Jain from Multicoin argues that Hyperliquid is deeply mispriced because markets view it only as a fast-growing perp DEX, while it's evolving into the backend for a global Everything Exchange. Key drivers include portfolio margining, permissionless market creation via HIP3, and a tokenomics model where revenue buys and burns $HYPE. The discussion covers US regulatory pathways, metrics for real user demand (liquidations data), and a base case valuation of $319+ per token.

Summarized by Podsumo

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✨ Key Takeaways

1

Portfolio margining is the most exciting feature—allows cross-margining across perps, options, and event contracts from one collateral account, creating powerful network effects.
2

HIP3 permissionless markets enable anyone to deploy new markets by posting a 500k $HYPE bond, already driving ~1/3 of Hyperliquid's volume.
3

Liquidations data is the truest metric of real demand—Hyperliquid has a much higher ratio of liquidations to volume vs. competitors like Aevo or Lighter.
4

Base case valuation: $HYPE at $319+ assuming 35% annual growth in crypto derivatives, DEX share rising to 32%, and Hyperliquid holding 30% market share.
5

US regulatory pathway is plausible but gradual—requires perps legalized, Clarity Act safe harbors for DeFi, and regulated front ends routing to Hyperliquid.

💬 Notable Quotes

"Portfolio margining is the most exciting because it empowers all other categories of products and provides a very powerful compounding return to scale."

— Tushar Jain
"You can't argue with cash flow. Users are willing to pay money to use the product. Price discovery is happening on Hyperliquid."

— Tushar Jain
"If that was the case, this whole team would be gone by now. Like they've already there. They've been there. Right?"

— Tushar Jain (referring to the hyperliquid team's motivation beyond money)