Hyperliquid's native token HYPE is used for fee discounts, validator security, and as a governance lever. Staking directly reduces trading fees, while also securing the network and incentivising honest oracle updates. The upcoming HIPP3 framework will enable permission-less perpetual markets that rely on staking for market-making rights.
HIP 3 is Hyperliquid's next-gen upgrade that lets anyone launch a custom perpetual market, stake HYPE tokens and plug in an oracle, dramatically expanding the protocol's product universe.