Original title: "Hyperliquid and Phantom's Win-Win: One Wins New Highs, One Sits on the Ground to Earn"

Original Author: Azuma, Odaily Planet Daily

On July 9th, Phantom, a mainstream wallet app in the Solana ecosystem, announced a partnership with decentralized exchange Hyperliquid, which will allow Phantom users to trade perpetual contracts directly in their wallets with up to 40x leverage on more than 100 tokens supported by Hyperliquid.

It's only been five days since the partnership was finalized, but it's almost certain that this partnership will be a win for both Phantom and Hyperliquid.

Hyperliquid: Reaching the Solana ecosystem, the price of the token broke through a new high

First of all, from the perspective of Hyperliquid, as the most powerful decentralized contract exchange, Hyperliquid's main position was in the EVM ecosystem, although there are also some sporadic Solana DeFi projects (such as Ranger) that are trying to connect the two services, but the overall reach rate of Solana users is not ideal. With the completion of the cooperation, Hyperliquid will leverage Phantom, the most mainstream wallet application in the Solana ecosystem, to reach users in the Solana ecosystem in the most direct and efficient way.

According to official data disclosed by Phantom in January this year, the wallet currently has 15 million monthly active addresses, which means that even if only 1% of the addresses are converted, it will bring 150,000 new users to Hyperliquid - based on Hyperliquid's current total user count of about 540,000, which means nearly 30% of the user increment.

In addition, Phantom also disclosed that its wallet-built exchange service facilitated a total of 850 million transactions in 2024, with a whopping $20 billion in transaction volume. Currently, spot trading volume on major centralized exchanges accounts for about 15%-30% of contract volume – which corresponds to an expected contract volume of about $66.6 billion, even if a conservative 30% of the data is taken as an estimate.

On the morning of July 13, Phantom officially disclosed that its contract trading volume has exceeded $120 million, which is only 4 days after its launch of the futures trading function, which is quite impressive.

Affected by the growth expectations brought about by this partnership, Hyperliquid token HYPE has also continued to hit new highs recently, temporarily trading at $49.13 as of 15:45 on July 14, leaving only one final sprint to break the $50 mark.

Phantom: "Rebates" to earn by lying down

For Phantom, the other party, this partnership is also very significant. On the one hand, the introduction of contract trading enriches Phantom's product functions and provides users with more diversified service content. On the other hand, with Hyperliquid's Builder Codes feature, Phantom is also poised for a significant new revenue.

Builder Codes, i.e., Hyperliquid allows third-party Builders (in this case, Phantom) to earn fees for transactions they send on behalf of users, which can be simply understood as a mechanism similar to "rakeback".

According to Hyperformance data, in just 5 days after the launch of the futures trading service, Phantom's "rebate" corresponding address (0xb84168cf3be63c6b8dad05ff5d755e97432ff80b) has earned $102155 of Builder codes.

Even based on the above data, this corresponds to an annual revenue of about $7.45 million, which may continue to be magnified several times given the expected growth in users and transaction volumes.

User side: better liquidity, lower fees

From the perspective of users in the Solana ecosystem, this partnership between Phantom and Hyperliquid is clearly a boon. On the one hand, Hyperliquid's liquidity has obvious advantages over the current contract exchanges in the Solana ecosystem, which will provide users in the Solana ecosystem with better transaction execution prices. What's more, Phantom and Hyperliquid offer attractive rates for users.

In its latest study, GLC Research pointed out that the median fee offered by Phantom and Hyperliquid is 0.095%, compared to 0.3% for Jupiter contract transactions.

Overseas KOL JJ (@hyperliquidbull) added that Phantom and Hyperliquid provide users with near-institutional-grade fee pricing, which is almost equivalent to the pricing of Binance VIP-1, which typically requires more than $15 million in monthly trading volume.

Conclusion: The future of chain abstraction

The most interesting thing about this cooperation between Phantom and Hyperliquid is that as the main leader of the Solana ecosystem, Phantom did not choose decentralized contract exchanges such as Jupiter and Drift, but chose Hyperliquid across the ecosystem, and all the integration work has been completed on the backend, and the front-end users are completely unfazed.

This is pretty much the future of chain abstraction that we envisioned – products will no longer be constrained by their native stacks, complex technologies and concepts will be hidden behind the scenes, and users will enjoy convenience directly and unconsciously.

As two leading players in different tracks, Phantom and Hyperliquid have provided a good example of cooperation, which may provide some reference ideas for future cooperation and innovation in the industry.

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