Hyperliquid Introduces HIP-3 Growth Mode, Slashing Fees by 90%

Hyperliquid, a leading on-chain decentralized exchange, has introduced an exciting update that makes it easier, cheaper, and faster for anyone to launch new markets. This has sparked a lot of interest in the crypto community as it aims to lower the barriers to entry and bring in more activity and liquidity to the platform.

This also opens the doors to unusual niche markets and pushes innovation in areas that traditional exchanges often overlook.

What is The Growth Mode?

HIP-3 is introducing a “growth mode” for assets. Deployers can turn it on individually for each asset, and it is permissionless, meaning anyone can activate it without needing approval.

When Growth Mode is active, trading costs drop dramatically. The taker fees, rebates, and volume-based contributions are reduced by at least 90%. Notably, growth mode applies on top of other multipliers like those for stablecoin collateral fee benefits or staking discounts.

Under the growth mode, the normal taker fees drop from around 0.045% to 0.0045–0.009%, which is 5-10x lower. Moreover, for aligned collateral assets, fees drop even lower to 0.0036–0.0081%. At maximum volume and staking tier, fees can go down to approximately 0.00144–0.00288%.

The parameters of Growth Mode can also be adjusted based on feedback from the community.

Eligibility for Using Growth Mode

There are two main rules for growth mode. The deployer fee scale must be between 0 and 1. This is the percentage of user fees that the deployer keeps before any other discounts. There is also a 30-day cooldown per asset after turning growth mode on.

Secondly, the market must be completely separate from existing validator-operated perpetual markets. The ineligible markets include Crypto perps using other collateral, Perps on crypto indexes, ETFs, or other baskets of crypto ETFs, Perps on combinations of crypto assets, Perps on vehicles or wrappers holding mainly crypto assets, and Perps tracking the gold price, since PAXD-USDG already tracks the gold price.

Community Reacts

This sparked a lot of excitement in the crypto community.

One user said that Hyperliquid is about to unleash a perp trading revolution, calling it “a turbo-boost for innovation on the fastest L1 for derivatives.”

“We’re talking 5-10x lower costs than legacy chains, drawing in wild assets that validators never touched—real-world yields, exotic commodities, tokenized treasuries on STEROIDS,” he said.

He said that traders should expect high volume and razor-thin spreads, while HYPE holders could also see massive gains as Hyperliquid strengthens its position in the derivatives space.