Vertical integration of app and chain layers as token value capture
Quote111 words
Argues that integrating part of the app layer into an L1 or L2, as Hyperliquid pioneered and CLOB appchains now follow, could become common. It gives chains a more effective way to capture value and broadens token utility.
Key claims
Vertical integration across the stack could become increasingly common
Also think that vertical integration across the stack, so actually integrating (part of) the app layer as an L1 or L2, could become increasingly common.
Basically what Hyperliquid pioneered, and what many existing and upcoming CLOB appchains (that opt for universally programmable environments around their infra) as well as universally programmable high-performance chains that optimize for such uses cases (that might run orderbook infra and/or a DEX) go for in one form or the other.
Can def be a novel/more effective way for chains to capture economic value that accrues to the token, while broadening options for token utility within the overall system.
Surely interesting times to be in this space.
QUOTING @zerokn0wledge_
Think another key issue with general-purpose L2s (aside the lack of adoption if they don't solve an actual problem) is often the economics around the tokens and a lack of actual demand for it. After all, in this hyper-financialized industry, the token is not just one of the most
Think another key issue with general-purpose L2s (aside the lack of adoption if they don't solve an actual problem) is often the economics around the tokens and a lack of actual demand for it. After all, in this hyper-financialized industry, the token is not just one of the most
What came next · since 28 Oct 2025
Since then
Zero has written 15 more pieces on Hyperliquid since this one.
- State of Hyperliquid: two years after the airdrop (A1 Research report)On Hyperliquid
- Hyperliquid's US regulatory path: HyperCore, HIP-3 deployers and buildersOn Hyperliquid
- Hyperliquid ecosystem briefing: 14 days of regulation, HIP-3/4, RWAs, revenueOn Hyperliquid
- Why profitable onchain businesses deserve attention: Hyperliquid and PumpOn Hyperliquid