HIP-3 Integration
Paragon markets are deployed via HIP-3, Hyperliquid's framework for third-party perpetual futures.
TL;DR: Paragon uses HIP-3 to list index perpetuals natively on Hyperliquid. Trade with your existing Hyperliquid account—same collateral, same interface, no new platforms required.
What is HIP-3?
HIP-3 (Hyperliquid Improvement Proposal 3) enables external builders to launch and operate perpetual futures markets on Hyperliquid's infrastructure.
Key features:
Native listing: Markets appear directly on app.hyperliquid.xyz
Shared infrastructure: Same matching engine, orderbook, and settlement as native markets
Fee sharing: Builders receive 50% of trading fees from their markets
No fragmentation: Traders access all markets from a single interface
For the full specification, see the Hyperliquid HIP-3 Documentation.
How Paragon Uses HIP-3
Paragon deploys index perpetuals through HIP-3, inheriting Hyperliquid's:
Low-latency order matching
Deep liquidity infrastructure
Battle-tested margin and liquidation systems
Established trader base
This approach lets Paragon focus on index methodology and oracle infrastructure while leveraging Hyperliquid's proven exchange mechanics.
Benefits for Traders
Single Venue
Trade Paragon indices alongside BTC, ETH, and other Hyperliquid markets without switching platforms or managing multiple accounts.
Unified Collateral
Your Hyperliquid USDC balance works across all markets—native and HIP-3. No separate deposits required.
Consistent UX
Same interface, same order types, same margin mechanics you already know from Hyperliquid.
Liquidity Network Effects
HIP-3 markets benefit from Hyperliquid's existing market maker relationships and liquidity infrastructure.
Fee Structure
Under HIP-3, trading fees are split equally:
Paragon
50%
Hyperliquid
50%
This model:
Funds ongoing protocol development
Aligns Paragon with Hyperliquid's success
Maintains competitive fee rates for traders
Technical Integration
Paragon's oracle network posts index prices directly to Hyperliquid via the HIP-3 oracle interface. These prices drive:
Mark price calculations
Funding rate determination
Liquidation triggers
For oracle details, see Oracles.
Learn More
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