How to Transfer USDC to Hyperliquid

Hyperliquid is a high-efficiency layer-one blockchain that hosts its own decentralized exchange, sharing the same name. It stands as a premier platform for trading perpetual futures, comparable to various centralized exchanges in terms of daily transaction volumes.

This prominence is largely due to Hyperliquid’s user-friendly trading interface, swift order execution, and, notably, its order book system—unlike many decentralized exchanges that rely solely on liquidity pools. The platform operates on Arbitrum, aiming to provide rapid and cost-effective transaction fees.

A key feature of the Hyperliquid ecosystem is its bridge, which facilitates the transfer of funds to both the blockchain and the decentralized exchange.

Hyperliquid Bridge: Transferring USDC to Hyperliquid

Understanding how to transfer USDC to Hyperliquid is essential for new users eager to engage with the decentralized exchange, as all trading pairs on the platform are based on USDC.

There are primarily two methods for transferring funds to Hyperliquid: through centralized exchanges or decentralized solutions.

In either scenario, you’ll require an EVM-compatible wallet, such as MetaMask, along with an active Arbitrum wallet. Since Hyperliquid operates on Arbitrum, ensure you have a compatible address ready to receive the transferred funds. Consider exploring some of the top DeFi wallets that typically support multiple blockchains.

Decentralized Method for Bridging USDC to Hyperliquid

While there are multiple strategies for this process, utilizing deBridge can be one of the most straightforward approaches. It enables multiple chain assets to be bridged nearly instantly. Here’s a concise breakdown of the steps involved.

Step 1: Access deBridge

Step 2: Choose the source blockchain where your funds currently reside at the top, and select the destination blockchain at the bottom. Given that Hyperliquid functions on Arbitrum, ensure to select Arbitrum for your destination chain and USDC for your asset as depicted in the accompanying image.

Step 3: Link your EVM wallet as both the source and destination.

Step 4: Specify the amount of USDC you wish to transfer to Hyperliquid and carefully review the transaction information.

Step 5: Confirm the transaction, and in just a few minutes, your funds will be transferred to your Arbitrum wallet.

Step 6: Launch Hyperliquid, connect your wallet, and select “Deposit” from the top-right menu. You will then see the available USDC in your Arbitrum wallet and can deposit any amount you desire to begin trading right away.

Centralized Method for Transferring Funds to Hyperliquid

The previous method allows for transfers without depending on a centralized entity, but what if you already have assets on a well-known exchange like Binance?

In that case, bridging to Hyperliquid could be even simpler. Navigate to your withdrawals tab and enter your Arbitrum wallet address as the destination.

Choose the amount to withdraw, approve the transaction, and once completed, your funds will appear directly in your wallet. You can then follow Step 6 from the previous section to deposit the funds into your Hyperliquid account.

Key Information on Hyperliquid’s Bridge

There are several important aspects regarding the Hyperliquid bridge that you should be aware of.

Depositing into Hyperliquid Bridge

Deposits are endorsed by validators, with crediting occurring once over two-thirds of the stake has been secured.

The deposit procedure itself is straightforward. Users need to send USDC to the bridge as outlined earlier, and it should credit the sender’s account in under a minute.

Be mindful that there is a minimum deposit amount of 5 USDC; sending less than this will result in the loss of funds.

Withdrawing from Hyperliquid Bridge

For withdrawals, a user wallet signature is required solely on the Hyperliquid DEX. These transactions do not initiate a process on Arbitrum and are managed exclusively by validators.

Your funds will typically reach your Arbitrum wallet within approximately 3 to 4 minutes.

Withdrawals are immediately deducted from your layer-1 balance, and validators manage them as individual transactions. Following the signature from two-thirds of the staking power on the withdrawal request, an EVM transaction will be issued to the bridge to facilitate the withdrawal. This triggers a dispute window, during which the Hyperliquid bridge can be secured in case of any malicious attempts. Unlocking the bridge requires the consensus of two-thirds of the validator set weighted by stake.

After the dispute period concludes, finalization transactions will distribute the USDC to the specified destination address.

No ETH fees are incurred for this process, and it should take no longer than the specified 3-4 minutes. However, a withdrawal gas fee of 1 USDC is applicable on Hyperliquid to support the validators’ gas costs on Arbitrum.