Phantom, a leading non-custodial crypto wallet, has announced a significant upgrade to its interface, rolling out direct perpetual futures trading capabilities powered by the decentralised exchange (DEX) and layer 1 blockchain, Hyperliquid. This integration allows Phantom users to access and trade over 100 crypto markets directly from within the wallet app, eliminating the need for external exchanges and streamlining the decentralised finance (DeFi) trading experience.
Streamlined Access to High-Leverage Trading
The new feature empowers Phantom users with access to up to 40x leverage for perpetual contracts, alongside built-in risk management tools such as stop-loss and take-profit orders. This directly embeds sophisticated trading functionalities into the user-friendly Phantom interface, democratising access to derivatives trading that has traditionally been confined to more complex centralised exchanges.
Users will initiate perpetual futures trading by funding their balance with SOL, which will then be automatically converted into USDC on Hyperliquid. This integration will be rolled out gradually to eligible users over the coming weeks. However, it’s important to note that users in the U.K. will be barred from accessing this feature due to regulatory restrictions.
Impact on the DeFi Ecosystem
The collaboration between Phantom and Hyperliquid is poised to have a substantial impact on the on-chain perpetual trading ecosystem. As pseudonymous on-chain analyst JJ noted on X, “If just 10% of Phantom’s user base converts into Hyperliquid traders, that’s 1.5 million wallets entering the Hyperliquid ecosystem, which would nearly double the addressable user base for on-chain perp trading overnight.” Phantom currently boasts 10 million users managing $25 billion in assets, making this integration a potential game-changer for Hyperliquid’s liquidity and trading volume.
Phantom’s decision to integrate with Hyperliquid, a rapidly scaling Layer 1 decentralised trade protocol known for its high-speed infrastructure and zero gas fees, highlights a strategic choice to prioritise efficiency and user experience. Hyperliquid’s on-chain order book model, sub-second finality, and ability to process up to 100,000 orders per second make it an ideal partner for a wallet aiming to offer a seamless trading experience. This move signifies a broader trend where self-custody wallets are evolving beyond simple asset repositories into comprehensive financial ecosystems, aiming to be the new front door to crypto for millions of users.
