TradeXYZ, Felix Protocol, and Ventuals Launch Tokenized TSLA, NVDA, and SPACEX Perpetuals on Hyperliquid Platform

TradeXYZ’s Tokenized TSLA and NVDA Begin Operations, Sparks New Excitement in the Market

In what can be seen as a remarkable breakthrough in the industry, protocols including TradeXYZ have successfully launched NVDA, TSLA, and SPACEX perpetuals in just the past 24 hours. This comes less than 30 days following the successful deployment of TradeXYZ’s tokenized Nasdaq futures, also known as XYZ100, on Hyperliquid. TradeXYZ, the perpetual trading arm lacking obligatory permissions of Unit, is known to be the tokenization layer of Hyperliquid. The firm was the first to initiate the trend on yesterday by launching its tokenized NVDA perpetual. The very next day, both Felix Protocol and TradeXYZ decided to follow in its footsteps by introducing the TSLA perpetual, with Ventuals unveiling the SPACEX perpetual. Despite the introduction of these new markets, the XYZ100 continues its dominance in the HIP-3 sector by maintaining the largest volume and open interest. However, this in no way means that the recently launched NVDA and TSLA markets by TradeXYZ are performing poorly. On the contrary, these markets are steadily propelling upwards, generating an impressive 24-hour volume of $26 million, along with an open interest of almost $9 million combined.

Maintenance of Market and Currency Distinctions

One major point of differentiation between the markets of TradeXYZ and those launched by Ventuals and Felix is the choice of currency being dealt in. The TradeXYZ markets are all settled in USDC, the dominant stablecoin on the Hyperliquid platform. In contrast, Felix and Ventuals have decided to settle their accounts in USDH, a newly launched stablecoin by Native markets. This move has manifested as the first authentic source of demand for USDH. As an incentive for its use, the yield from USDH reserves will be channelized in such a way that 50% of it will be utilized in the purchase of HYPE tokens. With the launch of these new markets, a limit has been placed on the open interest. Right from the start, this limit is expected to rise steadily as the protocol teams continue to observe their performance.

Felix Protocol’s View of the Market Growth

Charlie, a Felix Protocol contributor, has spoken about these developments to The Defiant. According to him, there has been a noticeable fragmentation of liquidity across the categories of markets representing the same tokenized equity. He also shares his insights about future growth of the HIP-3 market beyond the world of crypto-natives. Charlie revealed that currently, a certain degree of overlap exists between Unit, which provides tokenized TSLA markets, and Felix. This overlap is anticipated to diverge as Felix starts focusing on the development of separate businesses. These businesses will be independent of relying on Hyperliquids UI as the only source for TSLA/USDH distribution. Trading with USDH carries several incentives, as Charlie pointed out. These include 20% lower taker fees, 50% heightened rebates, and 20% increased volume contributions. Thus, trading the same market on Felix should be cheaper and more liquid for traders, promising the benefit of a lower fee schedule as the primary differentiator between Felix and Unit, signifying cost optimisation.

Expanding the HIP-3 Platform

Regardless of the HIP-3 perpetual markets still being in their early stages, the teams are determined to explore all possible opportunities for expansion. They are eagerly seeking ways to penetrate traditional finance traders and streamline the HIP-3 platform for the said audience. Charlie believes that the key to achieving this would be clarity in regulations and effective distribution as both go hand in hand. Once a significant player initiates the integration of perpetual equities due to increase in demand, regulatory clarity will likely follow in succession.

Targeting Non-Crypto Audiences

Addressing the complexities of wallet management, which could potentially turn away non-crypto traders, Charlie believes an interface known to this audience will be beneficial. By integrating the Privy + Hyperliquid builder code into an interface as familiar as Bloomberg, one can effectively bridge the gap, thereby attracting this untapped audience to enter the crypto-world.