TradeXYZ uses perpetual futures fee income to buy about $500,000 of HYPE

The move marks the first time the platform has used perps trading fee revenue for HYPE purchases, after earlier buys for HIP-3 pairs were mainly funded by spot fee income.

Summary

TradeXYZ has for the first time used revenue from perpetual futures (crypto derivatives with no expiry) trading fees to purchase HYPE, expanding a funding source that had previously been centered on spot trading fees. MLM monitoring said the platform moved 250,000 USDC from its perpetual futures fee wallet to a spot wallet two days ago and bought about 2,000 HYPE worth roughly $110,000, then used that HYPE to buy a HIP-3 trading pair. The latest data shows TradeXYZ transferred another 500,000 USDC to its spot wallet and began steadily buying about 9,000 HYPE worth around $500,000 through a TWAP (time-weighted average price) strategy. Earlier HYPE used to acquire new HIP-3 pairs mainly came from spot fee income, making this the first reported use of perpetual futures fee revenue for such purchases.

Terms & Concepts
  • perpetual futures: Crypto derivatives contracts without expiry
  • TWAP: Time-weighted average price execution strategy
  • HIP-3: A trading pair category referenced in the report