Hyperliquid Introduces HIP-3 Growth Mode With Lower Fees

Hyperliquid has announced plans to implement the HIP-3 Growth Mode feature that will enable deployers to reduce trading fees for their respective markets by up to 90%. This update is expected to go live within the next network upgrade, setting a blueprint for HIP-3 deployers in setting new markets. 

According to the team announcement on Discord, changes have been developed in response to growing competition, a need to foster early market activity, and improve liquidity in more non-crypto markets. The update seeks to address concerns about high fees and create a more level setup for new deployers. It also lowers fees for traders in the early stages of new markets, which can help trading activity form more easily. 

Growth Mode can be turned on for each asset without needing approval, and deployers set it up when they launch a new HIP-3 market. The focus is on helping early liquidity take shape since many users previously pointed out that costs were too high.

This integration will bring all-in taker fees down to 0.0045%–0.009%, which is up to ten times cheaper than validator-operated markets. Moreover, aligned collateral assets drop even lower at 0.0036%–0.0081%.

How the Growth Mode works

Hyperliquid sets clear rules for using Growth Mode. The deployer fee scale must be between 0 and 1, which decides how much of the trading fees the deployer keeps. Each asset also has a 30-day waiting period before Growth Mode can be turned on again. In addition, the markets must be completely separate from existing crypto-based perpetuals, so crypto pairs, crypto baskets, and similar markets are not eligible. 

The team also excluded gold-tracking markets because PAXG-USDC already covers that category. Hyperliquid said an on-chain validator vote will settle any gray areas. Besides these rules, Growth Mode can stack with multipliers like staking discounts and aligned stablecoin benefits. 

Community response builds momentum

The crypto community reacted strongly to the announcement on X. User starcraft2 said, “HIP-3 growth mode is a really strong move from HL. nuking all-in taker fees by ~90% for new HIP-3 markets fixes a big chunk of the ‘this is structurally too expensive’ concern from my original thread.”

He added that the update creates fresh optimism across tradexyz, kinetiq_xyz, felixprotocol, and others. He said, “still thinking through how it all plays out, but the equity perp wars just got a lot more interesting.”

Pink Brains also broke down the HIP-3 wheel. He highlighted how each market uses 500k HYPE for staking. Moreover, he noted strong traction in equity perps like XYZ100, TSLA, NVDA, and AMZN. He said these markets drive heavy volume and open interest while offering different fee structures through RedStone, Pyth, or hybrid oracles.

Additionally, he emphasized the Growth Mode impact, saying fees drop lower than Binance, CME micros, and all on-chain competitors. He noted the HYPE staking loop because deployers need large HYPE stakes to launch markets, which shrinks liquid supply.

Rising volume strengthens Hyperliquid’s position

On-chain volume data from DefiLlama shows a long build-up in Hyperliquid’s presence. Activity stayed weak through 2023. However, volume grew steadily throughout 2024. Early 2025 pushed the platform into a major surge. 

Daily volumes repeatedly hit $10B to $20B. The largest spike crossed $30B, marking the strongest participation in the dataset. Hence, Growth Mode arrives at a moment of accelerating demand.

Hyperliquid is entering a key phase of expansion. Growth Mode lowers trading costs, which helps new markets start with fewer barriers. It also encourages earlier activity and smoother market formation. This change shapes how HIP-3 fits into the broader shift toward on-chain markets.

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