Go long 100x on Nasdaq 100? Examining risks and potential from the launch of stock Perptual Futures on Hyperliquid.

The on-chain perpetual futures exchange Hyperliquid recently launched “Equity Perps (” through the HIP-3 upgrade, allowing users to trade the first index product XYZ100-USD on-chain 24 hours a day. On one hand, it challenges the status of traditional brokers, but on the other hand, there are concerns about its tax, liquidity, and regulatory risks.

on-chain Nasdaq? Hyperliquid from cryptocurrency to stock Perptual Futures

Hyperliquid contributor @ThinkingUSD announced yesterday that stock Perptual Futures are now available on the main interface, with the first trading pair being XYZ100 Perptual Futures. In the future, individual stocks such as NVDA, TSLA, PLTR, and HOOD will be gradually listed.

He calls this “the destination of all financial services,” echoing the comment from a netizen below that “Hyperliquid has turned Wall Street into an app.”

He emphasized that the launch of the product will boost Hyperliquid's fees and token buybacks:

Hundreds of millions of families around the world hope to access stocks, but are unable to do so, and this will be their only way to gain exposure.

DeFi researcher Monk pointed out that the XYZ100 Perptual Futures is actually the Nasdaq 100 index, which tracks the performance of the top 100 largest non-financial American companies listed on the Nasdaq exchange. The reason for using a code instead of the trademark is to avoid high copyright fees.

The Critical Point of Financial Innovation: When the Stock Market Meets Perptual Futures

Ethena founder Guy Young stated that this is “the most obvious bullish opportunity in the current financial industry.”

He pointed out that the cryptocurrency market creates hundreds of billions in market value through Perptual Futures on 4 trillion dollars of assets, and the scale entering the stock market is expected to exceed 30 times.

Compared to options, Perptual Futures are more suitable for retail investors to express their views on the underlying assets with leverage. In my opinion, the growth potential of this product in the future will be greater than that of Robinhood.

José Maria Macedo, co-founder of Delphi Labs, also believes that the emergence of stock perpetual futures will expand Ethena's revenue market from the $3 trillion cryptocurrency assets to the $120 trillion global stock market, and this potential has not yet been price in.

) Bloomberg interprets Hyperliquid: Binance's first real competitor, concerns about when regulation will arrive (

Potential issues: Risks and concerns of stock perpetual futures?

Opposing voices have also emerged, with DeFi researcher @ImperiumPaper citing four concerns:

Tax and long-term return asymmetry: Stocks held for more than one year enjoy tax benefits, while Perptual Futures do not.

Lack of dividends: If stocks issue dividends, holders of Perptual Futures cannot benefit, which is a considerable source of income for some individuals.

Regulatory and protection deficiencies: Traditional brokers are protected by SIPC insurance, while Perptual Futures platforms lack security, especially in terms of transparency in liquidation.

Cross-period volatility risk: Due to the opening and closing times of the stock market, the stock perpetual futures will repeatedly transition between tokenized assets and futures contracts, which will lead to the possibility of decoupling between non-trading and trading periods.

He believes that stock perpetual futures are not suitable for investors and speculators, but only for pure gamblers, and it is difficult to replace the value and capital bearing function of real stocks.

Macedo countered: “You could easily use the same reasoning to criticize the options market, and Robinhood made a billion dollars in a year just from options trading.”

Those users are not trading volatility; they just want leverage, and perpetual futures are a better way to achieve that.

Fees and Slippage: The Real Challenges of On-Chain Stock Trading

At the same time, there has been a lot of discussion about the pros and cons of Hyperliquid and another stock perpetual futures trading platform, Ostium. The following will compare the differences between the two in terms of transaction fees, slippage, and opening leverage.

Under the same Nasdaq 100 index contract, Hyperliquid supports a maximum leverage of 20 times, offering higher opening fees of 0.08% and closing fees of 0.024%, with an estimated slippage of 0.019% ) allowing for self-setting of slippage limits (, while the wicks also symbolize higher volatility.

The current 24-hour trading volume has reached 55.53 million USD, with the open contracts amounting to approximately 46.57 million USD.

On Ostium, the platform supports leverage of up to 100 times, with a transaction fee of only 0.05% for opening positions. Slippage can also be set by the user, but trades may fail if it is set below 0.5%.

)RWA on-chain platform Ostium, using stablecoins to hedge real-world assets while earning airdrops(

Future Outlook: Advantages and Challenges of Stock Derivatives on-chain

Guy Young emphasized that if Hyperliquid's stock perpetual can reach sufficient liquidity and compliance thresholds, it may force professional traders from traditional finance to enter the market on weekends:

When new information arises over the weekend, market analysts or fund managers will be responsible for adjusting positions in the 24/7 market to hedge risks.

On the other hand, decentralized platforms still face regulatory uncertainty ), especially regarding the attitude of the US SEC towards stock derivatives (, the lack of publicly secure pricing and settlement systems, as well as issues related to potential market manipulation and clearing transparency.

Stock perpetual futures may be the key to unlocking the momentum of global capital markets in on-chain finance, but whether this key can truly open the door still depends on the balance of liquidity, security, and regulation.

This article discusses 100x long positions on the Nasdaq 100? Examining the risks and potential of stock perpetual futures launched on Hyperliquid. Originally appeared on On-chain News ABMedia.