Hyperliquid Addresses SK Hynix Contract Volatility
The decentralized derivatives platform Hyperliquid has issued a response following unusual price movements observed in its "xyz:SKHYNIX" perpetual contract market, which tracks SK Hynix.
Independent Operation and Ongoing Investigation
In its statement, Hyperliquid clarified that its platform is built on a permissionless blockchain. The affected contract falls under its HIP-3 market category, where individual teams can independently deploy and operate specific markets. The SK Hynix perpetual contract in question is deployed and managed by a separate operational team.
That operational team has now initiated a review into the incident. Hyperliquid indicated that the team will share findings and further updates with the community once the investigation reaches a conclusion.
Understanding the Decentralized Pricing Model
The platform also took the opportunity to detail the pricing mechanics within its HIP-3 framework. HIP-3 market deployers maintain significant autonomy, including the ability to supply key data inputs like the mark price and oracle price for their respective markets.
For a HIP-3 market utilizing a pricing model similar to Hyperliquid's native perpetual contracts, the final mark price is derived from a combination of three components:
- The latest on-chain transaction price
- The best bid price in the market
- The best ask price in the market
Among these, the core protocol supplies only one component—specifically, the median of the three prices listed above. The remaining two components are provided by the market deployer. These three data points are then computed to determine the final mark price used for contract settlements. This structure is designed to allow for decentralized flexibility while incorporating safeguards.