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Hyperliquid joins the Solana ecosystem, collaborating with Phantom to create a cross-chain liquidity hub.
Hyperliquid partners with Phantom to enter the Solana ecosystem
Hyperliquid officially enters the Solana ecosystem, providing liquidity support through collaboration with the Phantom wallet. This move is different from a simple multi-chain deployment; it is more akin to becoming an on-chain centralized exchange, offering the ultimate source of liquidity for various protocols and decentralized applications.
Hyperliquid's positioning is different from that of spot DEXs and traditional contract DEXs. Spot DEXs primarily face the challenge of liquidity creation, while contract DEXs need to attract liquidity to a single point. Hyperliquid employs a unique approach, combining the efficiency of centralization with the experience of decentralization. Its closed HyperCore is responsible for spot and contract trading, while HyperEVM handles blockchain-related functions.
By partnering with Phantom, Hyperliquid is able to gain more entry points in the Solana ecosystem. Users can bridge SOL from Solana into their Hyperliquid spot account, exchange it for USDC, and then transfer it to the contract account as collateral. The trading and settlement process is controlled by Hyperliquid, and user funds actually enter the Hyperliquid system.
This cooperative model not only increases the flexibility of funds but also brings some security challenges. Users need to have a high level of trust in Hyperliquid, similar to the trust in centralized exchanges. For the native decentralized exchanges of Solana, this is undoubtedly a proactive offensive.
Hyperliquid and Phantom are both known for their strong profitability. Their collaboration not only complements each other's strengths but also sets up fee points at various stages. This strategy may provoke a fee-reduction response from competitors.
As the cryptocurrency industry approaches saturation, a single product type can no longer support business growth. In the future, we may see more competition, cooperation, acquisitions, and aggressive actions. This cycle may become a competitive stage between Hyperliquid and large centralized exchanges, as well as between Solana and Ethereum.