Hyperliquid Launches PUMP-USD Hyperp with 3x Leverage, Driving $21M Pre-Market Surge

A Bold Move in On-Chain Derivatives

Decentralized exchange  Hyperliquid has unveiled a new addition to its growing suite of derivative products, PUMP-USD, a pre-launch perpetual contract (or “hyperp”) that enables trading on the unlaunched $PUMP token. This marks another bold step by the platform to attract high-risk, high-reward traders eager to get early exposure to tokens before they officially hit the market.

Traders can now long or short the token with up to 3x leverage, offering opportunities for outsized gains, or losses, before $PUMP is even listed on centralized exchanges.

What Are Hyperps—and Why Are They Different?

Unlike traditional perpetuals, Hyperliquid’s hyperps are a unique kind of derivative that do not rely on external oracles to track prices. Instead, they use a moving average of the platform’s internal mark price to calculate funding rates. This design aims to reduce manipulation and provide more predictable pre-launch trading conditions.

But Hyperliquid warns that funding rates can change quickly, especially when the market is moving fast. If you’re trading against the crowd, you might come out ahead,  but if you’re on the wrong side, the losses can pile up real quickly.

PUMP-USD Debuts with $21M Volume, Then Drops

On the day that it was released, PUMP-USD saw over $21 million in trading volume. The token opened at a high of $0.015, but quickly corrected, falling to $0.0055 by the end of the day. This dramatic price movement reflects both the hype and the volatility that comes with trading an unlaunched asset.

The platform has labeled PUMP-USD as high-risk, citing low liquidity, high volatility, and the potential for sharp funding costs. Only isolated margin is allowed, and leverage is capped at 3x to protect traders from excessive downside.

Once the actual $PUMP token is listed on a centralized exchange, the hyperp contract will convert into a standard perpetual, aligning it with more traditional trading formats.

Riding a Wave of Growth in Decentralized Trading

The launch of PUMP-USD is part of a broader strategy by Hyperliquid to solidify its position as a leader in on-chain derivatives. In June alone, the platform recorded $214 billion in trading volume, outpacing all other decentralized perpetual protocols combined, according to Dune Analytics.

That momentum has helped Hyperliquid capture over 70% of all DEX perp trading volume, and its market share of Binance’s perpetual volume has risen above 10%. The platform also boasts over $3.5 billion in TVL across its bridge and more than 500,000 users, ranking it eighth among blockchains by TVL, per DefiLlama.

Another key feature is its tokenomics model: Hyperliquid redirects 97% of protocol fees to buy back its native token HYPE, effectively shrinking supply and aligning incentives with platform usage.

Caution Urged for Traders

While the introduction of PUMP-USD opens the door to new speculative opportunities, Hyperliquid has emphasized that these products may not be suitable for everyone. The platform encourages users to review documentation thoroughly before participating, as hyperps operate differently from traditional perps and come with unique risks.