Anyone can now create Hyperliquid perp contracts with $20M: Is DeFi about to break?

Hyperliquid’s HIP-3, launched on mainnet in October 2025, allows anyone to create perpetual futures markets by staking 500,000 HYPE tokens (~$20 million) as collateral, removing traditional gatekeepers. This democratizes DeFi but introduces risks, addressed through safeguards like validator slashing, market isolation, and open interest caps. Builders control price oracles, raising manipulation risks akin to the $112M Mango Markets exploit in 2022, but Hyperliquid mitigates this with high staking requirements, robust price indices, and validator oversight. Markets operate independently, with no cross-margining, and are launched via Dutch auctions every 31 hours (first three markets exempt). Compared to dYdX v4, GMX v2, and Drift Protocol, Hyperliquid’s approach emphasizes economic deterrence and minimal listing rules. Safety relies on builders’ stakes, validator monitoring, and protocol constraints, aiming to balance open access with stability. Show Less