The daily trading volume is $500 million, I only heard about HIP-3 yesterday.

Here is my output exercise after lunch, feeling bored.

Teachers, please go easy on me 🤓

(From the perspective of a newbie looking at the development of the crypto market)

I was curious, so I looked into the revenue model of HIP-3.

Basically, we can imagine Hyperliquid as a big supermarket, and HIP-3 is like adding a branch system to the supermarket: allowing others (those contract deployers) to open their own small shops, but the supermarket can still share the profits. In simple terms, HIP-3 helps Hyperliquid make money in the following ways:

Direct earnings: profit sharing and deposits.

When trading in new stores (HIP-3 Market) opened by others, the transaction fees collected are split equally between Hyperliquid and the shop owner. The transaction fee is already double that of the old store (for example, the old store charges 0.03%, while the new store charges 0.06%), so the supermarket does not lose money. Before opening a store, a large deposit of $HYPE (at least $5 million) must be made, just like a security deposit. If the shop owner messes up, the deposit may be forfeited, and Hyper directly profits. I've heard there’s also a model where extra store openings can be auctioned, allowing Hyper to earn money as well. The result is more new stores, leading to higher supermarket revenue. For example, yesterday contributed $200,000 in transaction fees (I checked, may have errors).

Indirect earnings would mean that this wave has boosted Hyperliquid's popularity again. Now, it's not just those copying coins using it, but also those involved in stock trading and bond copying. I can naturally understand the rise of $HYPE.

To explain: HIP-3 allows Hyper, this big supermarket, to sell more items (not just crypto, but also stocks and other things), attracting more "customers" to shop. More customers lead to more transactions, and naturally, transaction fees rise. Deposits also lock up $HYPE; my understanding is that with less circulation, prices are easier to increase. The supermarket uses 97% of its income to buy back tokens to burn, making the tokens more valuable, attracting more people to participate, creating a snowball effect: more stores → more people → more money → more expensive tokens → more stores.

The overall profit model is that simple: it relies on the transaction fees from customers buying things to survive. The fees are low, but the trading volume is large, earning over $100 million a year. HIP-3 is a good thing.