How Hyperliquid Index Perpetuals Use Formula-Based Underlyings
Summary
This documentation explains that Hyperliquid index perpetual contracts use a calculated index as the underlying reference instead of a spot asset price. Validators periodically publish index values to the chain, and the median of their reports substitutes for the usual spot oracle input when funding rates are calculated. Other contract behavior is described as matching ordinary perpetuals.
Two examples illustrate how index definitions can vary. NFTI-USD aggregates floor prices from selected NFT collections, applies a three-minute exponential moving average, and converts prices using an ETH-USDT oracle. FRIEND-USD has used changing sets of social-trading accounts and different price aggregation rules over time, with scale factors used to preserve continuity during index changes. The document describes construction and revision mechanics, not contract performance or trading results. Index definitions can change, so the stated components and methodology are time-sensitive.
Key ideas
- Index perpetuals reference a formula-based index rather than a spot asset price.
- Validators submit index values, whose median is used in the funding-rate calculation.
- NFTI-USD aggregates selected NFT collection floor prices and smooths the result with a short exponential moving average.
- FRIEND-USD has changed its account constituents and aggregation rules, using scale factors to keep transitions continuous.
- The index compositions and methods are time-sensitive, and the document reports no strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.