Hyperliquid generates revenue through on-chain perpetual futures and spot trading, facilitated by its HyperCore execution layer. Every order, trade, and liquidation occurs on-chain with one-block finality, enabling ultra-low latency and transparent trading. Liquidity providers and market makers earn supply-side fees from bid-ask spreads and transaction rebates, while network participants can earn governance and staking rewards via the HYPE token.

Hyperliquid is a layer-one (L1) blockchain purpose-built for trading and decentralized finance. It combines: HyperCore, the high-performance trading engine powering perpetuals, spot markets, and oracles; HyperEVM, a fully compatible smart contract layer enabling developers to build DeFi applications such as lending, vaults, governance, bridges, and stablecoins directly on-chain. Its consensus mechanism, HyperBFT, is a custom algorithm inspired by HotStuff, optimized for throughput (200k+ orders/sec) and deterministic finality. The HYPE token underpins the network, granting holders rights to participate in governance, staking, and securing the protocol — effectively letting users own a share of the Hyperliquid ecosystem.

HYPE tokenholders own, govern, and secure the Hyperliquid network through on-chain governance. The Hyper Foundation oversees community governance and ecosystem growth, ensuring decentralization and alignment of incentives across traders, builders, and validators. Hyperliquid’s investors include Tioga Capital Partners, Collab+Currency, Infinite Capital (San Juan), Optimista Capital, and RockawayX, all holding minority venture capital positions.

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# Hyperliquid Liquidation volume Methodology

## 1. Overview

Liquidation volume measures the total USD value of perp positions force-closed in liquidations across Hyperliquid Perps. This metric is used to assess market health, leverage risk, and the overall volume of forced liquidations within the perpetual futures market. Only liquidations from Hyperliquid Perps are included, while Hyperliquid Spot and Hyperliquid Outcome Markets are excluded. The volume is calculated by aggregating the USD notional value of liquidated positions where the trader is the liquidated user.

## 2. Data sources

- **Blockchain events**: `node_fills` and `node_fills_without_block_number` events from HyperCore, covering HyperCore

## 3. Step-by-step calculation

### Component A: Hyperliquid Perps liquidation filtering

- **Purpose**: Identification and isolation of liquidation events specifically for Hyperliquid Perps
- **Logic**: Node fill events are filtered to include only those associated with Hyperliquid Perps, which are identified by the exclusion of assets with specific prefixes (such as `#` for Hyperliquid Outcome Markets, and `@` or `/` for Hyperliquid Spot). Events are further filtered to isolate forced liquidations by ensuring the liquidated user field is populated and matched with the trader address, which isolates the liquidated party's own leg of the trade.
- **Key fields**: `liquidated_user`, `trader_address`, `coin`, `product_id`

### Component B: Notional value calculation

- **Purpose**: Calculation of the USD value of each liquidated position
- **Logic**: The USD notional value of each liquidation is calculated by multiplying the size of the liquidated position by the execution price. Liquidations are categorized into long liquidations (where the side is designated as `A`) and short liquidations (where the side is designated as `B`).
- **Key fields**: `size`, `price`, `side`

### Component C: Aggregation and finalization

- **Purpose**: Aggregation of daily liquidation volumes and application of zero-filling
- **Logic**: Long and short liquidation volumes are summed daily starting from May 26, 2025, to represent the first full day of node fill data. The daily liquidation volume is calculated as the sum of long and short liquidations. Missing days in the time series are filled with zeros to ensure continuity.
- **Key fields**: `long_liquidations`, `short_liquidations`, `liquidation_volume`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

USD value of debt covered or positions force-closed in liquidations.

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Liquidation volume

Liquidation volume

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