As expected by the community, Hyperliquid listed perpetual futures for the yet to be launched Monad (MON) token. Traders can now buy or sell the hyperp MON-USD pair. Are there any risks?
MON Launch Marks New Era of Pre-Market Trading
Decentralized perpetual exchange Hyperliquid has officially listed the MON-USD hyperp contract, allowing traders to long or short the unlaunched Monad (MON) token with up to 3x leverage. The move comes following strong community demand, marking one of the first opportunities for market participants to gain exposure to Monad prior to its official token launch.
MON Launch Marks New Era of Pre-Market Trading – Source: Hyperliquid
A New Type of Perpetual: “Hyperps”
Unlike traditional perpetual futures that depend on an external oracle price (such as a spot index), Hyperliquid’s hyperp mechanism operates without oracles. Instead, the funding rate is calculated relative to a moving average of the mark price, making the contract less vulnerable to external manipulation and flash volatility – a common issue in pre-launch futures markets.
This design allows for a self-contained pricing system, where all market dynamics are determined internally by supply and demand within Hyperliquid’s order book.
Risk Parameters
Trading MON with only an isolated margin. Use up to 3x leverage. Expect high volatility and thin liquidity. Funding can swing fast and cause quick liquidations. Hyperliquid advises caution. Hyperps suit experienced traders. Hyperliquid states in its docs: “Do not trade what you do not understand.”
Conversion Upon Official Launch
When CEXs list MON, Hyperliquid converts MON-USD hyperp to a standard perpetual. After the switch, pricing and funding follow the usual vanilla perp model.
About Hyperliquid
Hyperliquid has quickly emerged as one of the leading decentralized perpetual exchanges, offering on-chain order books and non-custodial trading. Its hyperp mechanism is a new way to design markets before they launch, eliminating the need for oracles and creating a stability model based on funding.
About Monad
Monad (MON) is a next-generation Layer-1 blockchain designed to be EVM-compatible, enabling seamless migration of applications from Ethereum while delivering high throughput, low latency, and parallel execution. By being compatible with Ethereum and improving performance, Monad wants to compete strongly with Solana and Ethereum, making it easier for developers to create scalable applications in one system. MON is Monad’s native token.
