🚀Launch: HIP-3 Exchange-as-a-Service (EaaS)

What is Launch?

Launch by Kinetiq is the first Exchange-as-a-Service (EaaS) platform built on Hyperliquid’s HIP-3 protocol, enabling anyone to deploy and operate their own perpetual futures exchange—without the $44M+ capital barrier that previously kept HIP-3 deployments out of reach.

By combining Kinetiq’s proven LST infrastructure with a crowdfunding model, Launch makes it possible for teams to raise the 1,000,000+ HYPE stake required to deploy “builder-deployed markets” on Hyperliquid. Each deployment runs on isolated staking pools, ensuring risk is limited to the exchange you choose to support.


Why HIP-3 Matters

HIP-3 introduces builder-deployed perps—a protocol upgrade that lets external teams launch and operate their own perp markets on top of HyperCore infrastructure.

Under HIP-3:

  • Stake Requirement: 1M+ HYPE staked per deployer

  • Fee Share: Deployers can earn up to 50% of trading fees

  • Risk Controls: Stakes can be slashed for malicious activity (e.g., bad oracles)

This opens the door for more diverse and specialized markets, but the capital requirement is a major hurdle—exactly what Launch solves.


How Launch Works

  1. Crowdfund the Stake – Contributors pool HYPE into an exchange-specific staking contract.

  2. Deploy Your Exchange – Kinetiq infrastructure handles validator setup, smart contracts, and integration.

  3. Operate Your Markets – Deployers focus on market curation, trading experience, and community.

  4. Earn & Distribute Fees – Trading fees are automatically shared with contributors.


Risk Isolation with exLSTs

Each Launch deployment issues its own exchange-specific LST (exHYPE).

  • Separate pools for each exchange deployment

  • Slashing events only affect that specific pool

  • Contributors receive returns based solely on the exchange they backed

Example: Stake in Exchange A, get exA-HYPE—completely isolated from Exchange B.


The “Shopify x Kickstarter” Model for Perp Markets

Think of Launch as:

  • Shopify: Full tech stack to run your own exchange without building from scratch.

  • Kickstarter: Crowdfunding the capital needed to launch via your community.

Deployers focus on markets & community.

Contributors back projects they believe in and earn yield from their success.

Traders enjoy more market diversity and innovation.


Benefits by Role

For Deployers:

  • Avoid $44M+ capital lockup

  • Focus on your edge—market curation, branding, and growth

  • Earn a share of fees from your exchange

For HYPE Contributors:

  • Back exchanges aligned with your interests

  • Earn yield from specific market deployments

  • Diversify across multiple exLSTs

For Traders:

  • Access new, specialized markets

  • Benefit from competitive fees and high-performance infra


What’s Next

  • Testnet deployment & security audits

  • First wave of partner exchanges launching via Launch

  • Crowdfunding UI for contributors

  • Governance frameworks for exchange-specific decisions


Interested in deploying a HIP-3 exchange or supporting one through Launch?

Contact us at [email protected] to get started.

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