Hyperliquid launches HyperEVM on testnet to boost DeFi capabilities

In a move that might potentially increase the blockchain’s smart contract capabilities, Hyperliquid has officialy launched HyperEVM on testnet.

According to Hyperliquid’s (HYPE) official announcement on X on Feb. 18, the update adds general-purpose programmability to the ecosystem while preserving the platform’s low-latency trading experience.

Hyperliquid’s HyperBFT consensus provides complete security for HyperEVM transactions, enabling on-chain execution without the need for external validation layers. 

Prior to the mainnet rollout, the testnet phase will be used to collect input and improve developer tooling. Future upgrades will include general ERC-20 transfers and precompiles.

Hyperliquid’s native token, HYPE, will serve as the gas token for HyperEVM. A new system contract, WHYPE, has also been deployed to support DeFi applications and native spot transfers between Hyperliquid’s L1 and HyperEVM. A bug bounty program will provide mainnet-level rewards for vulnerabilities found during this period to promote security research. 

The debut coincides with Hyperliquid’s ongoing market growth. HYPE has risen approximately 553% from its launch in November 2024, outpacing other cryptocurrencies. The platform’s solid foundation has been aided by its pricing structure, which allocates profits to liquidity providers and a community-managed fund.

Hyperliquid gained a lot of attention after its massive billion dollar airdrop, one of the biggest in crypto history. The platform’s appeal to traders is boosted by the fact that it aims to offer a CEX-like trading experience besides being a DEX.

The Assistance Fund is one of its most notable characteristics, which is absent from many DEXs. In the event of security breaches or when liquidity needs to be boosted, the fund, which keeps growing as fees increase, serves as a safety net. 

A recent K33 Research report revealed that Hyperliquid held 55% of the 7-day trading volume for perpetual DEXs. Furthermore, the open interest on the platform increased to 47% of OKX’s levels and 13% of Binance’s.