Hyper Liquid (HYPE), one of the largest decentralized exchanges (DEXs) in the crypto space, is preparing a significant upgrade that could reshape the way new projects launch tokens on its platform.
proposal known as HIP-6introduces a framework designed to enable permissionless on-chain token launches without relying on the off-chain funding methods that many teams currently use.
New hyper liquid proposal
Details of the proposal were shared on social media by James Evans of Reciprocal Ventures. According to Evans, HIP-6 establishes a permissionless token launch auction for new HIP-1 assets, tailored specifically for teams looking to issue tokens directly on Hyperliquid.
The system adapts Uniswap’s continuous liquidation auction model to work within Hyperliquid. Central limit order book (CLOB) environment to enable token launches to be performed natively within the exchange’s infrastructure.
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As of now, HIP-1 and HIP-2 already enable permissionless token deployment and automatic liquidity provisioning, but gaps remain in capital formation and price discovery.
Teams launching tokens on Hyperliquid often need to secure funding off-chain, manually provide their own liquidity to seed the HIP-2 pool, and release tokens into a relatively thin order book.
These limitations mean that despite its technical strengths, Hyperliquid has yet to reach parity with other high-performance ecosystems and exchanges. Initial token provision.
HIP-6 is designed to fill that gap, but participation remains voluntary for the project. This proposal aims to simplify the process for founders by consolidating capital raising and liquidity seeding into a single on-chain flow.
Funds raised during the auction will be automatically split between token deployers and liquidity provision via HIP-2, reducing operational friction and dependence on external arrangements.
Auction structure and ecosystem growth
A core element of this proposal is an approach to price discovery. HIP-6 uses continuous liquidation auctions that unfold over multiple blocks instead of one-time auctions that are sensitive to timing strategies.
This structure aims to determine a fair market price while minimizing “sniping” and last-minute bidding behavior commonly seen in traditional token launches.
This upgrade also aims to strengthen the broader ecosystem around Hyperliquid. HIP-6 can potentially contribute to improved profitability by creating adjusted pro forma asset utility. Total value is locked (TVL) into those assets to generate revenue for the platform’s support fund.
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HIP-6 addresses how new tokens will raise capital and establish initial liquidity, but it does not determine how those tokens will create long-term value or how their governance system will work.
Mechanisms such as revenue sharing, share buybacks, staking rewards, Treasury oversight, and voting rights will be left to individual projects.
Similarly, financial lockups, on-chain transparency requirements, or Vesting schedule It should be built on top of the HIP-6 framework as it impacts both buyer and team assignments.
The stated goal of this proposal is to make the initial auction process as efficient and fair as possible, leaving post-launch design choices up to the creativity of the Hyperliquid community.
At the time of writing, the platform’s native token, HYPE, is trading at $27.430, representing a 3% decline in the past 24 hours.
Featured image from OpenArt, chart from TradingView.com
