Inside Hyperliquid Strategies: CEO David Schamis on PURR, NAV, and the Future of HYPE
David Schamis explains why the Hyperliquid token feels like equity, how MNAV volatility drives shareholder value, and why Hyperliquid is positioned as the AWS of on‑chain finance.
31m·Guest David Schamis·Host Andrew Wilkinson·
Token‑as‑Equity & Scarcity Value
Hyperliquid’s native token is treated by the team as a quasi‑equity instrument. Daily buy‑backs and burns create a scarcity premium that makes a decentralized asset‑tracker (DAT) a logical vehicle for institutional exposure, especially given regulatory hurdles on direct purchase.
The Hyperliquid token behaves like equity because the protocol burns tokens daily with most of its free cash flow.
- The token is technically a utility token, but its economics mirror equity: continuous buy‑backs and burns reduce supply.
- David notes that the majority of Hyperliquid’s free cash flow is used for these burns, giving the token a real‑world equity feel.
- This structure aligns with David’s private‑equity background, making the token more tangible for investors.
- By treating the token as equity, the team can justify valuation metrics similar to traditional shares.
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00:02:18“the token is a token, but it is really equity like in so many ways. … the fact that the Hyperliquid is buying back and burning tokens every single day with the vast majority of their free cash flow makes it feel like equity.” — David Schamis
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00:02:37“I'm not a gold trader. I'm someone that has invested in private equity over the years. So, that sort of felt much more real to me.” — David Schamis
Scarcity of the token makes a DAT the sensible way for institutions to gain exposure.
- The token’s limited supply creates a scarcity premium, which is attractive for a DAT structure.
- David compares the situation to early Bitcoin adoption, where buying the asset directly was cumbersome, and a corporate‑level vehicle was preferable.
- Because the token cannot be bought directly in many jurisdictions, a DAT circumvents those barriers while preserving the scarcity advantage.
- This scarcity‑driven logic underpins Hyperliquid Strategies’ core product offering.
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00:02:51“the scarcity value around the token… made some sense to me.” — David Schamis
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00:03:27“you can't buy it in the US, you can't buy it in Ontario… buying it in a corporate structure actually makes sense.” — David Schamis
Regulatory constraints force institutional investors to use corporate structures like DATs to hold HYPE.
- Direct retail purchase of HYPE is blocked in the US and several other jurisdictions, limiting market accessibility.
- By packaging HYPE in a DAT, the team creates a regulated, corporate‑style vehicle that can be held in traditional portfolios.
- David cites conversations with a top high‑frequency trader who can only acquire HYPE via a DAT, confirming market demand for this workaround.
- This regulatory arbitrage is a key differentiator for Hyperliquid Strategies versus other crypto products.
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00:03:27“you can't buy it in the US, you can't buy it in Ontario… none of it is straightforward and none of it is remotely close to ubiquitous as Bitcoin.” — David Schamis
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00:04:01“we've talked to one of the world's most sophisticated high‑frequency traders… they can't buy hype directly. They can only buy it through a DAT like ours.” — David Schamis
Market Positioning: Flipping the DAT Script
Where most crypto projects tried to bring Bitcoin into traditional finance, Hyperliquid reverses the flow: it invites TradFi institutions onto its protocol, creating a new business proposition and unlocking institutional liquidity.
Hyperliquid flips the script by bringing TradFi into crypto rather than the other way around.
- Historically, the crypto narrative focused on getting Bitcoin into ETFs, DA‑Ts, and 401(k) plans.
- David argues that this approach offers little intrinsic value; the real upside is letting traditional finance use Hyperliquid’s liquidity.
- By positioning Hyperliquid as a destination for TradFi capital, the protocol can generate massive transaction volume and new revenue streams.
- This strategic inversion differentiates Hyperliquid from other crypto infrastructure projects.
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00:06:58“the script has been flipped – we actually want to bring TradFi here. We don’t need the liquidity necessarily. If we have TradFi here, we’ll have a ton of transactions when we add value.” — David Schamis
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00:07:10“the whole point of a DAT is not just to off‑load Bitcoin into a corporate structure; it’s to create a business proposition by bringing TradFi liquidity into the protocol.” — David Schamis
High‑frequency traders can only access HYPE through a DAT, confirming market demand for the product.
- The team spoke with a world‑class HFT firm that cannot purchase HYPE directly on the open market.
- The HFT must route exposure via a DAT like Hyperliquid Strategies, highlighting a concrete use‑case.
- This validates the product’s relevance for sophisticated, liquidity‑seeking participants.
- It also underscores the regulatory and custodial barriers that a DAT solves for institutional players.
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00:04:01“we've talked to one of the world's most sophisticated high‑frequency traders… they can't buy hype directly. They can only buy it through a DAT like ours.” — David Schamis
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00:04:54“we've talked to a lot of people… the world’s most sophisticated high‑frequency traders told us they need a DAT to get exposure.” — David Schamis
Institutional interest is already material, as evidenced by Hyperliquid handling ~2% of global silver volume after only six weeks.
- Within a month and a half of listing, Hyperliquid captured roughly 2% of worldwide silver trading volume.
- Although 2% may sound modest, the absolute dollar volume is large given silver’s global market size.
- This early traction suggests that institutional players are willing to route traditional commodity exposure through Hyperliquid.
- The team sees this as a foothold for broader institutional integration, potentially linking to CME clearing and KYC‑enabled broker‑deals.
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00:25:46“hyperliquid has accounted for something like 2% of the silver volumes around the world… it’s only been traded on hyperliquid for a month and a half.” — David Schamis
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00:25:54“maybe on one hand, you'd say 2% doesn't sound like a lot, but 2% of a big number is a big number.” — Host
Hyperliquid as the AWS of On‑Chain Finance
The team envisions Hyperliquid as a cloud‑like infrastructure layer that lets anyone launch financial products without building the underlying exchange stack, dramatically reducing time‑to‑market and cost.
Hyperliquid is the “AWS for anyone trying to bring any sort of asset trading” on‑chain.
- David likens Hyperliquid to Amazon Web Services, providing a ready‑made, permissionless liquidity layer.
- Developers can focus on product logic (e.g., a used‑Ferrari price market) while Hyperliquid supplies order‑book, settlement, and risk infrastructure.
- This model accelerates innovation and lowers capital expenditure for new on‑chain financial products.
- The analogy also signals a long‑term vision of becoming a foundational utility for the entire crypto finance ecosystem.
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00:28:15“hyperliquid being the AWS for anyone trying to bring any sort of asset trading…” — David Schamis
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00:29:31“we would just stick it on top of Hyperliquid in a HIP 3 buildout and it would just make so much sense.” — David Schamis
Building on Hyperliquid saves massive time and money compared to constructing a proprietary exchange.
- David draws a parallel to not building a server farm when you can rent AWS.
- By leveraging Hyperliquid’s existing order‑book and liquidity, teams avoid the huge engineering effort of creating a central limit order book, market‑making, and compliance layers.
- This cost‑efficiency is especially compelling for startups that lack deep infrastructure resources.
- The approach also reduces operational risk, as Hyperliquid handles core market mechanics and security.
- Overall, the model promises faster go‑to‑market and higher ROI for new on‑chain products.
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00:29:37“it wouldn't even cross your mind to build a server room now… that's what AWS and other cloud providers have done to the world.” — David Schamis
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00:30:09“I want to see Hyperliquid do that in sort of the financial services trading exchange world.” — David Schamis
Future vision includes on‑chain prediction markets (HIP 4) and exotic asset classes built atop Hyperliquid.
- David mentions HIP 4, which will enable on‑chain prediction markets, expanding the protocol beyond perpetual swaps.
- He illustrates a hypothetical market for the price of a used Ferrari, showing how any real‑world asset can be tokenized and traded.
- By providing the underlying liquidity, Hyperliquid makes such niche markets viable without needing separate liquidity providers.
- This forward‑looking roadmap positions Hyperliquid as a versatile platform for a wide array of financial instruments.
- The vision aligns with the AWS analogy: just as AWS supports countless SaaS products, Hyperliquid aims to underpin countless on‑chain markets.
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00:28:34“we know prediction markets as they've talked about in HIP 4 on‑chain… you could debate trading the price of a used Ferrari.” — David Schamis
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00:29:31“we would just stick it on top of Hyperliquid in a HIP 3 buildout… it would save us so much time and money.” — David Schamis
Adoption & Awareness: Educating the Financial World
Despite strong technology, Hyperliquid suffers from low brand awareness among traditional finance professionals. The team is actively pushing education through non‑crypto venues and transparent reporting to bridge the gap.
Very few traditional finance professionals have even heard of Hyperliquid.
- David estimates the number of seasoned finance people aware of Hyperliquid is “still a very low number.”
- This lack of awareness is a major barrier to institutional adoption.
- The team treats education as a core part of their mission, aiming to raise the profile among equity analysts, research houses, and conference attendees.
- Without this outreach, even superior technology may remain underutilized.
- The statement underscores the need for a dedicated communication strategy beyond crypto‑centric channels.
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00:21:05“the number of people that I know that have even heard of Hyperliquid is still a very low number.” — David Schamis
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00:21:35“that's a big part of our job is getting that out there.” — David Schamis
The outreach strategy now includes non‑crypto conferences and equity‑research venues.
- While crypto conferences remain valuable, David says 2026 will see a shift toward equity and traditional finance events.
- By speaking at equity conferences, the team hopes to reach analysts and portfolio managers who can champion Hyperliquid to their firms.
- This cross‑industry exposure is intended to demystify the protocol and position it as a mainstream financial infrastructure.
- The approach reflects a broader trend of crypto projects seeking legitimacy in the traditional finance ecosystem.
- Success will be measured by increased institutional inquiries and media coverage in non‑crypto outlets.
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00:21:44“we love doing crypto conferences, but a big focus for 2026 are non‑crypto conferences, equity conferences, equity research…” — David Schamis
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00:21:50“if everyone knew Hyperliquid they'd understand it.” — David Schamis
Transparent reporting (e.g., the MNAV dashboard) is used to build trust with potential investors.
- Publishing the MNAV dashboard signals a willingness to share core financial metrics openly.
- David acknowledges short‑term concerns about data exploitation but argues that long‑term credibility outweighs those risks.
- This mirrors best practices in public‑company reporting, where regular, detailed disclosures reduce information asymmetry.
- By making key performance indicators publicly visible, Hyperliquid hopes to attract more disciplined, long‑term capital.
- The strategy complements the broader education push, reinforcing that the protocol is not a black‑box.
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00:14:43“we just recently posted our MNAV dashboard on our website… the argument is you can pick off investors short term but long term it's not a way to attract more people.” — David Schamis
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00:15:02“if the market doesn't know exactly what your MNAV is, you can buy back your stock or issue stock… in the short term you can pick off some investors, but in the long term it doesn't attract more people.” — David Schamis
⚙ Agent-readable JSON index — click to expand
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