Hyperliquid Implements Token Linking Between HyperCore and HyperEVM

This update aims to optimize asset movement and reduce reliance on external bridges, known to be vulnerable to security failures and cyberattacks.

Hyperliquid, a decentralized finance (DeFi) protocol aiming for interoperability and security, has announced a technical update that introduces token linking capability between HyperCore and HyperEVM.

Hyperliquid’s core architecture consists of two main components: HyperCore, the primary chain handling token deployment and management, and HyperEVM, a highly compatible EVM designed for efficient smart contract execution.

The integration process between HyperCore and HyperEVM follows a structured procedure to ensure seamless asset movement and minimize reliance on external bridges, often targeted by attackers.

To link a token, a token contract is deployed on HyperEVM, named the “spot deployer,” at a pre-defined address, and it’s verified that the corresponding ERC20 contract is correctly linked to the original HyperCore token. This verification can be done through a transaction with a specific nonce, or if the contract was deployed by another contract like a multisig, the first storage slot is checked to point to the HyperCore deployer’s address. The final action is “finalization,” which ensures the correct token linkage and enables its use across both platforms.

The HYPE token, used as native gas on HyperEVM, can be transferred between HyperCore and HyperEVM without the need for additional ERC20 contracts. This movement is recorded through a specific event called “Received(address indexed user, uint256 amount).” To return to HyperCore, HYPE must be sent to the system address 0x222…2, and if the transfer fails, the user can contact Hyperliquid support to recover the funds.

Each token in HyperCore has its own system address, with the first byte being 0x20, and the token index is encoded in big-endian. The exception is the HYPE token, which uses the fixed address 0x222…2. This scheme simplifies asset management and minimizes allocation errors.

However, Hyperliquid cautions users that although token linking simplifies asset exchange, there may be risks associated with unverified contracts and potential discrepancies in token supply. The linked ERC20 contract must meet the established standards to avoid errors and asset loss. Additionally, improper synchronization of token supply and differences in accepted decimals can cause technical issues. Hyperliquid recommends thoroughly verifying the contract bytecode and the total balance before conducting significant transactions.