0xResearch HIP-3 Market Design and Felix’s Role | Charlie, Felix Protocol
Jan 12, 2026
Dive into the evolution of trading platforms with insights on market structure and user experience. Discover the impact of liquidity challenges and the competition among protocols. Explore unique strategies to attract taker flow and bootstrap spot liquidity. Uncover Felix's intriguing exploration of on-chain tokenized stocks and the complexities of stablecoin dynamics. The discussion also navigates revenue models, protocol trade-offs, and the future of decentralized finance—balancing innovation with growth.
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Outsourcing Worked Early, Now Shows Cracks
- Hyperliquid's outsourcing model initially drove volume but now shows gaps as more deployers enter and revenue falls sharply.
- Fragmented ticker costs, declining auction revenue, and UX confusion reduce incentives for third-party spot listings.
Ticker Costs And Low Taker Flow Hurt Spot Listings
- High ticker costs created a barrier to entry that limited deployers and stunted spot ecosystem growth.
- Low taker flow on Hyperliquid and perp-first usage make spot listings economically unattractive for third parties.
Bootstrap Liquidity Before Listing
- If you want spot adoption, ensure listings include third-party market makers or liquidity supports to avoid poor launch volumes.
- Prioritize parity execution evidence so traders don't bridge off-chain to buy assets.