What Is Builder-Deployed Perps (HIP-3)?

What Is HIP-3?

HIP-3 is a Hyperliquid Improvement Proposal that introduces the "builder code" system. At its core, HIP-3 defines:

• Builder codes – Unique identifiers assigned to operators (builders) that track orders routed through their interfaces or APIs.
• Fee attribution – When a trade is executed with a builder code attached, a portion of the trading fees is attributed to that builder.
• Market deployment – Builders can propose and deploy new perpetual futures markets on Hyperliquid, subject to governance and liquidity requirements.

HIP-3 effectively creates a B2B2C model on top of Hyperliquid: builders serve as the customer-facing layer (front-end, branding, community), while Hyperliquid provides the infrastructure (matching engine, risk engine, settlement). Revenue is shared between the two through the builder code fee-splitting mechanism.

How Builder-Deployed Perps Work

The lifecycle of a builder-deployed perpetual futures market involves several steps:

• Market proposal – A builder identifies demand for a perpetual futures market that does not yet exist on Hyperliquid (e.g., a new token, a novel index, or a prediction market). They submit a proposal specifying the underlying asset, oracle source, leverage limits, and fee structure.
• Deployment – Once approved (through governance or automated criteria), the market goes live on Hyperliquid's order book. It is immediately accessible to all Hyperliquid users, not just the builder's front-end users.
• Fee collection – Trades routed through the builder's front-end carry the builder code, ensuring the builder earns their fee share on that volume. Trades placed directly on Hyperliquid or through other interfaces do not carry the builder code.
• Market management – The builder may promote the market, bootstrap initial liquidity (or incentivize market makers), and provide analytics or educational content to drive adoption.

Why HIP-3 Matters for the Derivatives Ecosystem

HIP-3 represents a structural innovation in how derivatives markets are created and operated:

• Permissionless market creation – Traditionally, listing a new perpetual futures market requires a centralized decision by the exchange. HIP-3 enables anyone to propose new markets, dramatically expanding the range of tradeable instruments.
• Distributed distribution – Instead of relying on a single exchange front-end to attract all users, HIP-3 creates an ecosystem of specialized front-ends (builders) that each target different user segments—communities, geographies, niches, or trading styles.
• Aligned incentives – Builders are economically incentivized to drive volume because they earn fees. This creates a network of motivated distribution partners that grows the overall pie for Hyperliquid.
• Reduced time-to-market – New markets can launch in hours or days rather than the weeks or months typical on centralized exchanges.

Builder-Deployed Perps vs Traditional Listings

This model has parallels to app stores: Hyperliquid provides the platform and infrastructure, while builders create the applications (front-ends) and earn revenue from their users. The result is a much broader and faster-growing derivatives ecosystem than any single exchange could create alone.

Opportunities for Builders

HIP-3 opens several strategic paths for different types of operators:

• Trading communities – Discord, Telegram, or social media trading communities can deploy a branded front-end and earn fees when their members trade. No exchange license, matching engine, or custody infrastructure is needed.
• Fintech apps – Mobile apps or financial tools can integrate perpetual futures trading as a feature, earning revenue from trading volume without building exchange technology.
• Niche market operators – Builders focused on specific sectors (AI tokens, RWA tokens, meme coins) can deploy specialized markets and interfaces that cater to those communities.
• Prediction market builders – HIP-3 can support event-based contracts, allowing builders to create prediction markets on Hyperliquid's infrastructure.

Platforms like perps.studio are purpose-built to help builders leverage HIP-3 effectively. They provide the front-end framework, deployment tools, and integration layer that makes it practical for non-technical teams to operate as Hyperliquid builders.

Risks and Considerations

While HIP-3 enables powerful new business models, builders should consider:

• Liquidity bootstrapping – A newly deployed market starts with zero liquidity. Builders need strategies to attract market makers—either through incentives, partnerships, or by listing assets that already have strong organic demand.
• Fee competition – Multiple builders can deploy front-ends for the same market. If competition drives fees to zero, the builder model becomes unsustainable for that market.
• Governance and compliance – Market deployment may be subject to protocol governance decisions. Builders also need to consider regulatory implications of operating a trading interface in their jurisdiction.
• Oracle dependency – Builder-deployed markets rely on oracle price feeds. For exotic or long-tail assets, reliable oracle data may not be available, creating pricing risk.
• User education – End users may not understand the builder model. Transparency about where orders are executed and how fees are structured builds trust.