Hyperliquid Policy Research Center: Perpetual Futures Can Complement Traditional Futures Markets, No Evidence Found of Weakening Benchmark Markets

According to Odaily, the Hyperliquid Policy Center has released a research report titled "Perpetual Futures as Complements to Dated Futures," stating that perpetual futures can expand market risk management tools and improve price discovery efficiency, rather than squeezing out traditional dated futures markets.

The report notes that the biggest difference between perpetual contracts and traditional futures is the absence of an expiration date, allowing traders to avoid forced rollovers and maintain continuous exposure to asset prices through a single contract, making them better suited for round-the-clock trading. As perpetual futures enter the U.S. market for the first time, there have been concerns about whether they might divert liquidity from traditional futures.

The Hyperliquid Policy Center analyzed data from Bitcoin and on-chain WTI crude oil perpetual contracts, comparing perpetual contract prices during periods when traditional futures markets were closed with benchmark futures prices after markets reopened. The study covered 205 Bitcoin trading weekends and 19 on-chain crude oil perpetual contract sample weekends.

The research found that perpetual futures complement traditional futures in several ways:

- Perpetual contracts can reduce hedging costs, avoiding the additional expenses associated with mandatory rolling positions when traditional futures expire;

- Perpetual contracts attract small-scale trading demand that traditional futures struggle to cover. For example, the median trade size for on-chain crude oil perpetual contracts is approximately $1,300, roughly 1/100 of traditional WTI futures;

- Perpetual markets provide effective price discovery during periods when traditional markets are closed, with weekend prices typically being validated by benchmark market prices upon reopening;

- During extreme market conditions, perpetual contracts help investors manage risk continuously. For instance, during significant weekend volatility in crude oil in March 2026, using on-chain crude oil perpetual contracts for hedging could significantly reduce potential losses;

- Data shows that after the launch of perpetual markets, there was no statistically significant negative impact on traditional benchmark markets, with spreads in the WTI futures market even narrowing after reopening.