Architecture & pilot
First establish the customer problem and viable hedge economics. HIP-3 is one possible implementation if a new market is justified; execution through existing routes may be sufficient.
| Protocol infrastructure | Deployer responsibilities |
|---|---|
| Matching and order books | Market definition and reference selection |
| Protocol margin, P&L and liquidation | Permitted risk settings and stress testing |
| Protocol funding and settlement mechanisms | Oracle publication, monitoring and failure policies |
| Trading API infrastructure | Liquidity relationships, distribution and interface |
| Protocol security and access mechanics | Stake, data licensing and legal/operational structure |
Executing your hedge versus making a market
Executing for a partner means acting under an explicit mandate: approved instruments, counterparties, exposure limits, discretion and reporting. It does not require us to be the principal counterparty. Market making means quoting two-sided prices using risk capital and managing inventory; any affiliated trading must have disclosed conflicts and separate controls around oracle and venue operation. Neither capability is live today.
Oracle service boundary
The deployer defines its reference methodology and submits permitted oracle and price inputs. HyperCore applies protocol mechanics. It is inaccurate to assume the deployer independently implements every part of the final mark formula. Validate inputs, clamps and update behavior against current protocol actions.
Capital and market operations
The documented HIP-3 staking requirement is 500,000 HYPE, subject to protocol changes. Its dollar value varies. Stake financing is not committed. Do not assume a backstop or insurance mechanism is equivalent to a customer guarantee or covers all losses.
Discovery before a trading pilot
Start with a 20-minute call about one real exposure: instrument, size or DV01, holding period, current hedge, spreads, fees, funding, collateral and rejected flow. Ask what would make the desk switch and who controls budget and approvals. Ranges are sufficient for the first call.
With permission and a secure channel, replay a 30-day anonymized sample. Return a comparison of the current route, possible alternatives and stressed economics. This initial work involves no execution, custody or live quotes.
- Buyer: identify one recurring exposure, actual hedge and decision maker.
- Comparison: replay real anonymized trades against current routes and a proposed contract.
- Liquidity: obtain indicative spread, depth, hours and hedging terms from a market maker.
- Commitment: agree budget, risk limits and conditions for allocating pilot flow.
- Implementation: test reference publication and protocol behavior before any live deployment.
Decision gate
Proceed only if a buyer makes a concrete conditional pilot commitment, a second buyer confirms the problem and a liquidity partner can support viable economics. An expression of interest is not committed volume. Pause if existing routes solve the problem more economically.
Integration status
No public API, SDK or sandbox exists for this project. If a market is deployed through HIP-3, integration should follow the protocol’s supported APIs and actual market identifiers. We will publish implementation documentation after these decisions are made.