Why Hyperliquid Clamps Oracle Price Changes to One Percent
Hyperliquid CEO Jeff Yan explains how a 1% oracle clamping rule stops DeFi flash exploits and why perps can trade more volume than spot.
Jeff Yan's Plan to Bring the Entire Financial Industry Onto Hyperliquid
Jeff Yan, CEO and co-founder of Hyperliquid Labs, joins Joe Weisenthal and Tracy Alloway to explain how the high-throughput Layer 1 blockchain operates as a neutral financial layer. He breaks down how perpetual contracts are deployed and cleared on-chain, how price oracles and risk limits function, and the mechanics behind 24/7 weekend trading of commodities like crude oil. Yan also discusses the regulatory road ahead following interest from US regulators, arguing that verifiable on-chain solvency represents a major technological leap for market transparency.
Key takeaways
- Hyperliquid prevents instant flash-loan attacks by capping consecutive oracle price updates to a maximum 1% shift at the protocol level. Read more →
- Donald Trump made public remarks stating that US regulators want frameworks to bring Hyperliquid onshore legally, creating an opening for decentralized platforms to interface with the CFTC. Read more →
- Jeff Yan left Hudson River Trading to launch Hyperliquid Labs in 2023 because centralized crypto exchanges force users to take unhedged counterparty risk. Read more →
- Hyperliquid aims to host global trading on a single Layer 1 blockchain instead of building a private exchange application. Read more →
- Deployers must lock 500,000 HYPE tokens natively on-chain before gaining the right to create new perpetual markets. Read more →
5 articles from this episode
Jeff Yan: Regulate Financial Deployers, Not the Blockchain
Hyperliquid CEO Jeff Yan explains how on-chain solvency and CFTC core principles allow decentralized finance to meet federal regulatory standards.
Hyperliquid Put the Clearinghouse on a Layer 1 Blockchain
Jeff Yan explains how HyperCore embeds clearing, margin, and liquidations directly into an L1 state machine to eliminate counterparty risk.
Jeff Yan on Why Hyperliquid Runs Finance on Minimal Hardware
Hyperliquid co-founder Jeff Yan explains how a purpose-built Layer 1 blockchain can replace fragmented exchanges using standard commercial hardware.
Hyperliquid Uses Dutch Auctions to Price Blockspace
Hyperliquid co-founder Jeff Yan explains how HIP-3 uses 31-hour Dutch auctions and HYPE staking to stop market deployment spam.
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