Hyperliquid, a prominent decentralized exchange operating on-chain, has introduced HIP-3 Growth Mode, a new feature

intended to reduce trading fees by more than 90%

for markets that have just launched. This enhancement

is designed to make it easier for both market makers and traders to participate

, boosting liquidity for specialized and up-and-coming assets while competing with centralized platforms. With this update, taker fees—which are usually 0.045%—can fall to just 0.00144% for top traders, and

additional fee reductions are available for those who use compatible collateral or meet certain staking levels

. According to experts in the field, this marks

one of the most competitive fee models in DeFi

.

Growth Mode operates in a

permissionless manner, so deployers can enable it without needing approval from a central authority

. To be eligible,

new markets must not duplicate existing validator-run perpetuals

and must observe a 30-day fee lock to maintain stability. This mechanism

helps stop “parasitic” trading activity

and supports experimentation in less-served asset types, such as equity-linked derivatives and real-world assets.

For instance, Felix Protocol has recently introduced

a Tesla perpetual contract using HIP-3, demonstrating the platform’s adaptability.

This move by Hyperliquid comes as competition heats up in the decentralized perpetuals space.

Other protocols, including Aster and Lighter, have been competing for trading activity

, but Hyperliquid’s technological strengths—like its HyperBFT consensus and HyperEVM blockchain—give it an edge for long-term leadership.

The exchange

handles more than $10 billion in trades every day

, with some days seeing volumes above $30 billion. By making trading cheaper, Hyperliquid

hopes to draw both liquidity providers and individual traders

to new markets during their formative periods.

The launch has sparked considerable excitement on crypto social platforms, with many users

calling the update an “incredibly bullish” catalyst

for new developments.

Analysts suggest that these extremely low fees could lead to a surge

in innovative markets, such as tokenized government bonds and unconventional commodities, which traditional validators might avoid. Still,

the exchange has encountered obstacles

, including a $4.9 million bad debt event in November 2025. In reaction, Hyperliquid

implemented tighter market controls

and introduced 30-day fee locks to address risks from high leverage.

Even with ongoing volatility in the broader crypto market, Hyperliquid’s native token, HYPE, remains central to its economic model.

The exchange dedicates 97% of its trading income

to buying back HYPE through its Assistance Fund, supporting demand even during price drops. Although HYPE is currently trading below $40—a 6% decrease since the news—the platform’s $10 billion market capitalization highlights its leading position in DeFi.

Industry experts point out that Hyperliquid’s approach fits with the sector’s move toward open infrastructure and user rewards. By merging speed, decentralization, and lower fees, the platform is transforming how on-chain liquidity is provided. However,

whether Growth Mode succeeds

will depend on whether deployers can build up liquidity and attract traders to fresh markets.