POWER PERPS ON HYPERLIQUID

Summary from the TLDR Crypto newsletter

Paragon introduced Power Perps on Hyperliquid, a family of perpetual contracts that track an asset's price raised to a power, with HYPE² as the first instrument delivering 4x exposure when the underlying doubles. The structure carries no strikes or expiry dates, consolidating trader interest into a single persistent order book per underlying rather than fragmenting liquidity across an options chain as conventional instruments do. Hyperliquid's portfolio margin allows cross-margining of spot, linear perps, and Power Perps in one account, while market makers hedging delta in existing spot and perp books add order flow that tightens Power Perp spreads. Paragon frames these contracts as composable building blocks: a squared perp paired with a short linear approximates a straddle, while the reverse combination, short power and long linear, earns funding when the market trades sideways.