In just 24 hours after its debut, Hyperliquid’s equity perpetuals (equity perps) generated nearly $100 million in trading volume. Despite this success, open interest was capped at $66 million.

The launch has ignited heated debate across the crypto and DeFi communities, with many wondering if this is the “golden opportunity” for the equity perps on-chain market. Others question whether it is merely a high-stakes experiment built on fragile assumptions.

New Opportunity: 24/7 Liquidity and the Evolution of Zero-Day Options

The impressive launch of Hyperliquid’s equity perpetuals product is stirring up debate in the investment community. What makes equity perps stand out is their ability to transform the traditional equities market into a 24/7, fully on-chain trading ecosystem.

Unlike conventional stock exchanges that operate only a few hours a day, on-chain equity derivatives enable continuous, borderless, and transparent trading, aligning with DeFi’s ethos of open and permissionless markets.

Hyperliquid equities perps. Source: Hyperliquid

Analysts argue that equity perps are not designed to replace traditional stock futures but to disrupt zero-day options (0DTE) – products favored by short-term speculators seeking leverage. As Kirbyongeo explained, equity perps “don’t replace equity futures, they replace zero-day options.”

This shift aligns with the broader appetite for leverage in modern markets. José Maria Macedo pointed out that Robinhood earns nearly $1 billion annually, around 25% of its total revenue, from options trading alone, demonstrating a vast demand for leveraged exposure. Equity perps could fill this gap on-chain, providing a simpler, decentralized alternative.

Some industry observers even believe equity perps could rival crypto perps or stablecoins in scale. Ryan Watkins predicts that global equity perps may represent crypto’s most significant growth opportunity over the next 12–18 months, potentially outpacing stablecoins. By echoing this view, Dylan G. Bane suggests that the total addressable market (TAM) for equity perps might eventually “outgrow stablecoins” once mainstream adoption begins.

Equities share. Source: Dylan G. Bane

Risks and Realities: Legal Gaps and Market Depth

Despite the excitement, several prominent voices are sounding caution. DCinvestor criticized perpetual contracts as inherently biased, warning that exchanges often have visibility into traders’ liquidation points, enabling “liquidation hunts” in low-liquidity environments. Such dynamics could become even more problematic in early-stage on-chain equity markets, where liquidity and volatility are shallow.

“Perps are effectively a rigged game. Even if they weren’t actually rigged, the rules practically guarantee you will eventually lose and lose big unless you have extreme risk management and portfolio management skills,” he wrote.

Moreover, equities differ fundamentally from cryptocurrencies. Stocks carry dividends, shareholder rights, and legal protections, none of which translate neatly into decentralized derivatives. An analyst warns that detaching equities from their legal frameworks may conflict with long-term investment interests, while Sam cautions that current adoption expectations are “much higher than reality.”

“Equity perps could be a defining moment for Hyperliquid. But the path to adoption is murky, and today’s expectations are much higher than reality.” Sam noted. 

Operationally, the main challenge lies in building transparent risk management systems, liquidation protection, and regulatory alignment. Without these safeguards, akin to “circuit breakers” in traditional exchanges, equity perps on-chain could quickly face skepticism and tighter oversight from regulators worldwide.

In summary, equity perps on-chain are a strategic innovation with immense potential, bridging the gap between traditional finance and decentralized trading. The appeal is undeniable: 24/7 liquidity, high leverage demand, and a globally accessible infrastructure. Yet, success will first depend on solving the challenging problems: liquidity, transparency, compliance, and investor protection.

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