Hyperliquid, the decentralized perpetuals buying and selling platform, has launched a major replace to its blockchain infrastructure. The improve introduces totally on-chain validation for asset delisting.
This follows after a $6 million exploit, the place a whale compelled a brief squeeze of the JELLY memecoin, which led to the alternate delisting the memecoin.
Hyperliquid introduces totally on-chain validation earlier than asset delisting
In a put up on X, Hyperliquid revealed that it has upgraded its blockchain, introducing totally on-chain validator voting for asset delisting. This improvement allows a quorum of validator stakes to autonomously set off asset removals straight on-chain with out the necessity for off-chain coordination.
Hyperliquid mentioned the transfer is a present of its dedication to enhancing decentralized governance inside its ecosystem, following the backlash it acquired after delisting the JELLY memecoin.
Hyperliquid mentioned “As an illustration of the primitive, the Hyper Basis validators 2-5 will vote to delist MYRO perps round 13:00 UTC on March 29. Hyper Basis validator 1 will abstain from voting till delegations to preliminary Delegation Program contributors are full,” including that validators will possible shut votes off-chain for readability. Nevertheless, the Hyper Basis doesn’t converse for them.
On March 26, 2025, Hyperliquid skilled a high-profile buying and selling manipulation involving the memecoin JELLY. A dealer exploited the platform’s liquidation mechanisms by strategically opening each lengthy and quick positions. The manipulation resulted in vital publicity for the Hyperliquidity Supplier (HLP) vault. In response, the perp DEX shut down the market, closing the value of the token at about $0.0095, turning the potential loss into over $700,000 revenue.
Hyperliquid addresses centralization issues
The alternate has confronted criticism from the crypto group for the way it dealt with the JELLY incident. Earlier in March, the alternate took motion towards leveraged buying and selling, growing margin necessities after the HLP misplaced a number of hundreds of thousands of {dollars} in a big Ether liquidation occasion. Even that transfer dropped person confidence in its declare of decentralization.
Hyperliquid has confronted criticism prior to now over centralization issues. Members of the crypto group have highlighted a number of points akin to restricted transparency, restricted participation, and API entry limitations. Additionally, Hyperliquid controls 81% of the staked HYPE tokens, which the group sees as proof of centralization.
The CEO of Bitget, Gracy Chen, wrote, “The way in which it dealt with the $JELLY incident was immature, unethical, and unprofessional, triggering person losses and casting severe doubts over its integrity,” including that it may turn out to be FTX 2.0.
Blockchain analyst ZackXBT additionally questioned its governance, mentioning inconsistencies within the platform’s intervention methods. He famous that whereas Hyperliquid acted swiftly through the JELLY incident, it had beforehand claimed its incapacity to deal with different vital points, doubting its dedication to decentralization.
Hyperliquid acknowledged the occasion and mentioned affected customers shall be reimbursed. “Technical enhancements shall be made, and the community will develop stronger because of classes discovered,” it added.
The incident led to the alternate’s native crypto HYPE experiencing an 11% value drop.
