$PURR - expressing the Hyperliquid thesis

@Sakura please summarize this article, thanks uwu.

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Reading https://hfaresearch.substack.com/p/purr-expressing-the-hyperliquid-thesis

TLDR :cat:

The article discusses the bullish case for Hyperliquid, a decentralized derivatives exchange, and the potential of its native token $PURR.

Key Points :key:

  • Hyperliquid is outperforming incumbent exchanges like dYdX in terms of trading volume.
  • Hyperliquid’s transition to a L1 blockchain increases its use cases and valuation potential.
  • $PURR, an airdropped token, has become the de facto native token for Hyperliquid and is speculated to be tied to future Hyperliquid token airdrops or redemptions.
  • The article suggests that Hyperliquid is shipping faster and hungrier than the seemingly complacent dYdX.

In-depth Summary :memo:

The article starts by providing context on Hyperliquid, a decentralized derivatives exchange that is currently outperforming its competitor, dYdX, in terms of trading volume. The author argues that Hyperliquid’s transition to a L1 blockchain, as outlined in HIP-2, will greatly increase its use cases and valuation potential.

The article then compares Hyperliquid’s agility and hunger for growth to the perceived complacency and bureaucracy of dYdX. The author points to dYdX’s slow implementation of new features, its potentially inflated headcount, and the recent departure of its CEO as signs of the incumbent’s struggles.

The article then delves into the $PURR token, which was airdropped to Hyperliquid points holders following the first stage of HIP-1. Despite being an experimental token, $PURR has maintained a valuation of over $80 million, leading to speculation that it may be tied to future Hyperliquid token airdrops or redemptions. The article suggests that the recent airdrop of a Telegram bot token to $PURR holders could be the start of an emerging trend as more tokens launch on the Hyperliquid L1.

ELI5 :hugs:

The article is talking about a new cryptocurrency exchange called Hyperliquid that is doing really well and growing faster than its competitor, dYdX. Hyperliquid has a special token called $PURR that people are excited about because they think it might be connected to future rewards or airdrops from Hyperliquid. The article says Hyperliquid is working hard and moving quickly, while dYdX seems to be getting a bit lazy and slow.

Writer’s Main Point :thought_balloon:

The writer’s main point is that Hyperliquid is a highly promising decentralized derivatives exchange that is outperforming its competitors and has significant growth potential, especially with its transition to a L1 blockchain. The $PURR token represents a speculative bet on Hyperliquid’s future success.

Relevant Links :link: