Hyperps: Funding and Oracle Design Without a Spot Index
Summary
Hyperps are perpetual contracts that can exist before an underlying asset or index is available. Instead of referencing an external spot or index oracle, the contract uses an exponentially weighted average of recent mark prices as its oracle input. The document explains that this design aims to stabilize pricing and reduce manipulation compared with conventional pre-launch futures.
The mark price also incorporates a weighted median of pre-launch perpetual prices from centralized exchanges, with caps tied to the averaged mark and external prices. Oracle pricing has an additional upper bound. Funding is calculated using a modified premium formula, so strong one-way momentum can make funding costly for positions in that direction over the next funding interval. The text says a hyperp converts to a standard perpetual after the underlying asset is listed on major spot venues. It describes mechanics rather than presenting performance evidence, and gives no empirical results; the contract’s specialized pricing and funding rules require careful review before trading.
Key ideas
- Hyperps can trade before their underlying asset or index exists, using a smoothed mark price as the oracle reference.
- The oracle input is an exponentially weighted average of recent minute-level mark prices, with initial-price padding and an upper bound.
- External pre-launch perpetual prices contribute to the mark price, which is subject to additional caps.
- Funding can strongly favor the side opposing pronounced price momentum during the next funding period.
- After the underlying asset is listed on major spot venues, the hyperp is described as converting to a conventional perpetual.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.