DeFi | How do on-chain perpetual contracts work?
On transparent on-chain platforms like Hyperliquid, anyone can usually look up large positions and their liquidation prices.
The order book model works similarly to how centralized exchanges match orders, with prices determined by buyers and sellers. The pool model relies on oracle pricing, so problems with the oracle directly affect settlement.
$HYPE is Hyperliquid’s native token. Hyperliquid is known for perpetual futures trading. Current price: 77.38.
Don’t trade with borrowed money. Stress can lead people to make bad decisions.
On transparent on-chain platforms like Hyperliquid, anyone can usually look up large positions and their liquidation prices.
The order book model works similarly to how centralized exchanges match orders, with prices determined by buyers and sellers. The pool model relies on oracle pricing, so problems with the oracle directly affect settlement.
$HYPE is Hyperliquid’s native token. Hyperliquid is known for perpetual futures trading. Current price: 77.38.
Don’t trade with borrowed money. Stress can lead people to make bad decisions.
