- MetaMask linked with Hyperliquid to launch perpetuals trading, advancing its goal of becoming an all-in-one self-custodial trading platform.
Crypto wallet giant MetaMask launched a new feature that can potentially challenge centralized cryptocurrency exchanges (CEXs) in perpetual futures markets. On Wednesday, the platform announced its integration with Hyperliquid (HYPE) to enable decentralized perpetual swaps.
The perps trading feature is now live on MetaMask. This allows users to trade derivatives directly within the MetaMask wallet.
Additionally, MetaMask’s perps trading function supports one-click funding from any Ethereum Virtual Machine (EVM) chain without swap fees. However, it is only available in select regions.
Gal Eldar, global product head at MetaMask, highlighted in an interview with Cointelegraph that the Hyperliquid engine integration into the crypto wallet and optimizing it for mobile devices opens a frictionless path for passive holders to become active traders.
MetaMask hinted at the new function in a code update on GitHub, which crypto researcher Ericonomic discovered in September. The crypto wallet provider’s latest move aligns with its goal of turning its platform into an all-in-one, self-custodial trading platform.
“The opportunity is enormous,” said Eldar. “And with these barriers falling away, the timing couldn’t be better for MetaMask to bring a one-tap, onchain trading experience to our entire user base.”
Perpetuals Trading: How It Works
Perpetual trading is a type of derivatives trading that lets users speculate on the future price of a crypto. Unlike traditional futures contracts, perps don’t have an expiration date. Traders can hold their positions indefinitely as long as they maintain sufficient margin. They employ a funding rate mechanism to keep the perpetual contract’s price closely synced with the underlying asset’s spot market price.
Another element that makes perps swaps enticing for traders is their leverage. The feature enables them to control a large position with a relatively low capital (margin).
The drawback, however, is that leverage also amplifies potential gains and losses. Meanwhile, failure to sustain the maintenance margin when the market moves against the trade could liquidate a position.
These developments come hot on the heels of the company’s stablecoin rollout and incoming token launch. MetaMask’s introduction of perpetuals trading, alongside the debut of the MetaMask USD (mUSD) stablecoin, will be followed by the unveiling of its own token named MASK.
Joseph Lubin, CEO of ConsenSys, notably dropped the bomb about the MASK token last month. He said MASK is coming “sooner than expected,” with the crypto community expecting it to arrive before the present year ends.
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