Hyperliquid partners with Phantom to enter the Solana ecosystem, opening up new opportunities

Hyperliquid officially enters the Solana ecosystem, and this time it is not a simple multi-chain deployment, but rather providing liquidity support through collaboration with the Phantom wallet. This move is surprising because Phantom chose Hyperliquid over other local platforms.

Compared to simply supporting Solana chain and Phantom wallet logins, Hyperliquid's approach resembles a decentralized version of a large exchange. Its goal is to become the ultimate source and destination of liquidity for all protocols and decentralized applications, leveraging super liquidity to become a true on-chain cornerstone.

To fully understand Hyperliquid, it is necessary to compare it with other platforms:

Compared to decentralized exchanges for spot trading, Hyperliquid as a contract product faces the challenge of maintaining liquidity. The difficulty for spot exchanges lies in liquidity creation, while contract exchanges need to "attract" liquidity to gather in one place, which is also the inherent advantage of centralized exchanges.

Compared to other decentralized exchanges for contracts, Hyperliquid adopts a more refined operational model. It uses a closed HyperCore for spot and contract trading, while HyperEVM handles the "blockchain" part. This design places Hyperliquid in a superposition of decentralization and centralization, ensuring both ultra-strong liquidity and matching efficiency, while maintaining the brand effect of decentralization.

Hyperliquid's goal is to become the infrastructure of the market, so it needs to capture as many entry points as possible. Phantom, as the main wallet of the Solana ecosystem, has become an ideal partner. In the design of Phantom Perps, Hyperliquid is embedded within the Phantom interface, allowing users to trade contracts directly in the Phantom wallet.

This cooperation model has both advantages and potential risks. The advantage is that it increases the freedom of funds, allowing users to trade various currencies on Hyperliquid and choose different leverage multiples based on the amount of capital. However, the downside is that the security of the system may be compromised, especially during extreme market fluctuations, where the entry and exit of bridged assets may face challenges.

Hyperliquid's move is not just a simple collaboration with Phantom, but rather a strategic offensive aimed at penetrating and controlling the Solana ecosystem. This will undoubtedly pose a challenge to the native decentralized exchanges on Solana, and may also trigger reactions from other centralized and decentralized exchanges.

From a profitability perspective, both Hyperliquid and Phantom are highly profitable platforms. Their collaboration has set up charging points at various stages, which may prompt competitors to consider reducing fees in response.

Overall, this cooperation reflects that the cryptocurrency industry has entered a new stage. Pure product types can no longer support business development, and mutual competition, acquisitions, and attacks may become more frequent. In this new cycle, we may witness the showdown between Hyperliquid and large exchanges, as well as the competition between Solana and Ethereum.