1.Intro

2. How does Hyperliquid MCP work?

3. The reason we built Hyperliquid MCP

4. What is Hyperliquid?

5. What is MCP?

Intro

We are excited to announce that hyperliquid-mcp is the first MCP Server in the Hyperliquid ecosystem to support natural language order execution. It seamlessly integrates with various large language models (LLMs), delivering a consistent and highly efficient interactive experience. Users can initiate requests from the Client side, effortlessly completing the entire process from account inquiry to order placement, all through an intuitive and frictionless interface.

Our vision is to build an efficient, standardized connection framework that accelerates the convergence of AI and crypto economics. We believe the integration of LLMs and Crypto MCP will dramatically lower the entry barrier for users—eliminating concerns about the “on-chain dark forest" allowing for one-click integration and ready-to-use solutions.

Technical Architecture and Design Philosophy

System Architecture

• Protocol Adaptation Layer

• Wraps the Hyperliquid SDK into MCP-standard tools:

// Example: Querying user contract account status
tools.defineTool('get_perp_clearinghouse_state', {
  description: 'Query user perpetual account state',
  params: { user: 'wallet address' },
  execute: async ({user}) => sdk.info.perpetuals.getClearinghouseState(user)
});

• Secure Execution Environment

• Isolates user-sensitive information, configured locally.

• All sensitive operations require secondary confirmation.

{
  "mcpServers": {
    "hyperliquid-mcp": {
      "command": "npx",
      "args": ["-y", "hyperliquid-mcp"]
    },
    "env": {
      "PRIVATE_KEY": "your_private_key_here"
    }
  }
}

• Performance Optimization

• Implements caching mechanisms for high-frequency data queries (TTL 500ms).

• Processes batch concurrent requests to reduce RPC call frequency.

Design Approach

• Minimal modification principle: Preserves the original semantics of Hyperliquid APIs, only converting protocol formats.

• Intent-First Design:

• Progressive Expansion:

  1. Basic Version (Current): Order management and market data querying.

  2. Advanced Version (Next): Cross-account asset aggregation and strategy backtesting.

Deployment

To add the MCP server to Claude Desktop, follow these steps:

• Create or edit the configuration file for Claude Desktop:

  • macOS: ~/Library/Application Support/Claude/claude_desktop_config.json

  • Windows: %APPDATA%\\Claude\\claude_desktop_config.json

  • Linux: ~/.config/Claude/claude_desktop_config.json

• Add the following configuration content:

{
  "mcpServers": {
    "hyperliquid-mcp": {
      "command": "node",
      "args": ["/path/to/hyperliquid-mcp/dist/index.js"],
      "env": {
        "PRIVATE_KEY": "your_private_key_here"
      },
      "disabled": false,
      "autoApprove": []
    }
  }
}

The Significance of Hyperliquid-MCP Integration

Solving Industry Pain Points

• Data Silos: Traditional trading platform APIs vary in format; MCP standardizes query interfaces, setting a new industry benchmark.

• High Operational Threshold: Abstracts complex on-chain derivative trading into "natural language conversational interactions."

Core Value Propositions

• Empowering AI Trading

  Users can query via natural language (e.g., "Show my BTC perps positions").

• Enhancing the Crypto-MCP Ecosystem

  • Provides standardized toolkits, reducing adaptation development workload by 80%.

  • Open-source implementation lowers integration barriers.

Hyperliquid: A High-Performance Decentralized Derivatives Exchange

Hyperliquid is an innovative decentralized exchange (DEX) focused on perpetual contract trading. Known as the "on-chain Binance," it aims to combine the efficiency of centralized exchanges (CEX) with the transparency of DeFi through its high-performance blockchain and user-friendly interface.

Core Advantages:

• High-Performance Technical Architecture

  • Hyperliquid's independently developed Layer 1 blockchain (HyperL1) uses the HyperBFT consensus mechanism, supporting over 100,000 orders per second with sub-0.2s latency, rivaling the speed and efficiency of centralized exchanges.

  • Fully on-chain order book model ensures transparency and high execution efficiency, eliminating traditional DEX issues like latency and slippage.

• Leading Trading Volume and Market Share

  • Holds ~ 68% of the market share in perpetual contract DEXs, with daily trading volumes reaching $4-5 billion and cumulative trading volume $1 trillion+, firmly establishing itself as the industry leader.

  • Its spot trading volume ranks in the top 10, competing with leading platforms like Curve, demonstrating its cross-market competitiveness.

• Low Costs and User-Friendliness

  • Extremely low trading fees (Maker 0.01%, Taker 0.035%) and a gas-free design, reducing user costs.

  • Intuitive interface supports perpetual contracts with up to 50x leverage, attracting both professional traders and retail users.

• Community-Driven and Decentralized Governance

  • No VC funding, with 70% of HYPE tokens allocated to the community, boosting user engagement and loyalty.

  • Revenue is used for HYPE buybacks and burns, supporting long-term token value stability, with a market cap ranking in the top 30.

Challenges:

Hyperliquid's application scenarios and developer community are still in the early stages. Its on-chain order book and high-performance features present a learning curve for new users. Additionally, new users must actively cross-chain to its proprietary HyperL1, creating a barrier to entry.

MCP: The "Universal Connector" Between AI and Blockchain

The Model Connectivity Protocol (MCP) is a groundbreaking open standard in the AI field, offering:

1. Standardized Interaction Interface

   • Similar to how USB-C standardizes physical connections for electronic devices, MCP defines a universal protocol for AI large language models (LLMs) to interact with external systems.

   • Supports core functions such as tool discovery, permission management, and data format conversion.

2. Bidirectional Capability Expansion

   • Data Input: Enables LLMs to retrieve real-time on-chain data (e.g., position status, market depth).

   • Action Output**:** Transforms natural language instructions into executable on-chain transactions (e.g., placing or canceling orders).

3. Modular Architecture

   • Uses a plugin-based design, allowing developers to flexibly add new data sources or functional modules.

   • Already integrated with over 10 blockchains, including Ethereum and Solana.

In the crypto space, MCP is becoming the "neural hub" connecting smart contracts and AI applications, directly lowering user barriers and solving issues like low development efficiency and poor compatibility in traditional API integrations.

MCP Architecture:

Built with ❤️ by Impa Ventures

With the GitHub repository available as open source: hyperliquid-mcp

Debugging Tutorials: Debugging Tool