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#ftx-collapse1#l1-vision1#origin-story1#prop-firms3
Hyperliquid started as a Perp DEX and evolved into its own L1 to meet performance needs
  • The initial product was a permissionless perpetual exchange (Perp DEX) built on existing chains.
  • Limitations in throughput, latency, and global settlement forced the team to build a custom L1.
  • The L1 provides a “trusted financial layer” for all on‑chain finance, not just derivatives.
  • This evolution reflects a strategic shift from a single market to an infrastructure platform.
JeffBell Curve00:08:31

Supporting quotes

Quote
00:08:31
“Hyperliquid kind of grew from just a Perex to financial infrastructure powering a Perex, but also other stuff.” — Jeff
Quote
00:07:41
“We basically never backed down from the challenge. We're just instead of compromising like okay let's just drill deeper like can we build the next layer of infrastructure below the one we're currently building.” — Jeff

From this concept

Hyperliquid Origin: From FTX Collapse to L1 Vision

Jeff Yan explains how his background in traditional finance and crypto prop-trading led to the founding of Hyperliquid after witnessing the failure of FTX. The collapse highlighted the need for a truly decentralized, user-focused exchange, prompting the team to evolve from a simple perp DEX into a purpose-built L1.

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