In a recent thread on X, user Mogie shared a deep dive into HyperEVM, addressing common critiques and highlighting its unique advantages in the evolving world of decentralized finance (DeFi) and meme tokens. This post unpacks a foundational belief about how HyperEVM fits into the Hyperliquid ecosystem, especially as meme tokens continue to capture attention in blockchain trading. Let's break it down step by step, explaining key concepts along the way for those new to the space.

Addressing the Big Question: Why HyperEVM?

HyperEVM often faces skepticism: Why launch another Ethereum Virtual Machine (EVM) compatible layer when there are already so many out there? What's the real value add? Mogie's thread starts by tackling this head-on, using Hyperliquid's growth as a starting point.

Hyperliquid is a leading platform for perpetual futures (perps) and spot trading in crypto. Perps are contracts that let you bet on asset prices without expiration, and spot trading is just buying and selling assets directly. The premise here is that Hyperliquid will keep growing its market share in open interest (OI), volume, and liquidity, becoming the go-to for price discovery across assets. Price discovery is basically how markets figure out the "fair" value of something through trading.

We're already seeing this in action with Hyperliquid's premarkets (Hyperps), where tokens rack up high OI even after listings on big exchanges like Binance. Plus, there's buzz around Unit's flows in BTC and ETH—Unit being a key component in Hyperliquid's spot ecosystem. Mogie references an earlier post with a meme that captures this sentiment perfectly:

This meme humorously ties points farming in projects like Project X to the broader growth narrative of Unit's spot volumes, emphasizing how user incentives align with ecosystem expansion.

HyperEVM and HyperCore: A Tight-Knit Duo

To understand HyperEVM's edge, we need to look at its relationship with HyperCore, as outlined in Hyperliquid's docs (check them out here). HyperCore is the core blockchain layer handling spot and perp order books, secured by HyperBFT consensus—a fast, efficient way for nodes to agree on transactions.

HyperEVM isn't a separate chain; it's integrated right into the same consensus mechanism. This means dApps, smart contracts, and protocols on HyperEVM can directly interact with HyperCore's data. The perks? Huge for DeFi builders and meme token enthusiasts:

1. Proximity to Fair Price: Since price discovery happens on HyperCore, HyperEVM has the lowest latency (delay) to these accurate prices compared to other EVM layers like L1s (base blockchains) or L2s (scaling solutions).

2. No Oracle Risk: Oracles are third-party services that feed external data (like prices) into blockchains, but they can be unreliable or manipulated. HyperEVM uses "Read Precompiles" enshrined in HyperBFT to natively access HyperCore's state—prices, balances, you name it—without needing oracles.

3. No Bridging Risk: Bridging assets between chains can be risky due to hacks or failures. With "CoreWriter," HyperEVM contracts can execute trades and transfers directly on HyperCore, skipping bridges altogether.

For meme tokens, which often thrive on hype and rapid trading, this setup means smoother launches, better liquidity, and reduced risks—perfect for volatile assets that meme communities love.

The Case for AMMs on HyperEVM

Automated Market Makers (AMMs) are the backbone of many DEXes (decentralized exchanges), like Uniswap. They let users swap tokens using liquidity pools instead of traditional order books. Mogie argues that despite HyperCore's central limit order book (CLOB) interface, a big group of users will always prefer AMMs for their simplicity.

You could build interfaces that abstract complex swaps using HyperCore under the hood, but AMMs shine for easy liquidity providing (LPing) and supporting niche pairs, including those not officially listed via HIP-1/2 proposals on Hyperliquid.

The thesis boils down to this:

• Deep liquidity and price discovery reside on HyperCore.
• Demand for these assets (plus EVM-exclusive ones like custom meme tokens) exists on HyperEVM.
• This setup creates natural arbitrage opportunities: Prices lead on HyperCore, and AMM pools on HyperEVM follow, driving volume and fees for LPs.

Sure, LPs might face "Loss Versus Rebalance" (LVR)—a fancy term for value leakage when pools adjust to external price changes—but many see it as the price of convenience. It's like paying a small fee for passive market-making without the hassle of active trading.

In the meme token world, where quick swaps and community-driven liquidity are key, an AMM DEX on HyperEVM could become a hotspot for launching and trading viral tokens, leveraging Hyperliquid's robust infrastructure.

Wrapping It Up: Dominance in the Hyperliquid Ecosystem

Mogie's conclusion? The AMM DEX that wins user and LP share on HyperEVM will claim a top spot in the entire Hyperliquid ecosystem. Replies to the thread echo this—users like Lamboland and westwoods agree it's spot on, with some nodding to the end of traditional exchange dominance.

For blockchain practitioners and meme token hunters, HyperEVM represents a bridge between high-performance trading and accessible DeFi. As Hyperliquid grows, keep an eye on projects building here—they could redefine how we trade memes and more. If you're diving into Hyperliquid, start exploring their ecosystem for the latest developments.