1, what is entropy?

Maybe you don’t understand #Entropy , but you’ve definitely seen its referral link......(0.0)

More precisely, entropy isn’t really a perp—at least not at the moment.

So WTF is Entropy?

In essence, it’s a tiny scaled-down version (based on trading volume) of trade.xyz....

Based on the #Hyperliquid hip-3 upgrade, any third party can stake 500,000 Hype to create their own perpetual contract market. trade and entropy are examples of such third-party markets—so they’re basically trading frontends for the market.

What can you trade with entropy?

It says in its Twitter bio: Trade the frontier—trading frontier assets

I flipped through the official docs—there are mainly 3 types.

Pre-IPO perpetual assets, e.g., ANTH

Stock perpetual assets, e.g., SNDK

Perpetual index contracts. They haven’t launched yet; I guess the third no-auction allocation will be used for this.

There are 3 non-auction allocation slots for hip-3 deployers (no need to list trading pairs via Dutch auction). Entropy used two of them: SNDK (SanDisk) and ANTH (Anthropic of a million users/day).

By the way,

Entropy’s Chinese name is “熵” (Entropy). It measures the system’s “level of disorder” or “uncertainty.”

2. Project background

A mysterious team

Very unfortunately, I couldn’t find specific information about the team members. The only thing I know is that on the same day they started posting for Entropy, they began “preheating” posts. And it’s said their research and trading team includes people from Citadel Securities, Optiver, Polymarket, and Millennium (all claimed in official posts).

As for what the official team dropped out of prestigious schools to start a business, and that they worked at jump kalshi ribbit—all those are just one-sided conclusions from @inhuau and “律动,” with no accurate sources.

Given they got a 14m funding round and managed to convince 500k Hype tokens, we can only choose to believe they’re real.

(Just don’t actually set up a launch to cut family members.)

Funding information

Recently, the official announced a 14M funding round led by Ribbit, plus another 40m in Hype equity investment.

(Finally sent a tweet)

(For Entropy to become a hip-3 deployer, they need to stake 500k Hype. At a price of 80u, that’s exactly 40m.)

And then there are all the referral links everyone has been seeing…

The reason KOLs are so excited is that Ribbit once led the investment in that super huge whale @Lighter_xyz—so everyone hopes Entropy can become the next Blur (cutting down trade that looks extremely similar to OpenSea’s).

Sorry for bringing in so many ancient names…

In short, #OpenSea Pua has years of experience but doesn’t let everyone climax. In the same track, Blur is all about fast pacing: listing + points, and at the end of the season they drop an airdrop directly—so everyone gets to feast.

Then take a look at how long this trade has been live—volume is so high, yet they still haven’t issued a token for so long. It seems they want to continue OpenSea’s fine tradition. Everyone’s suffering because trade has been around forever. Now that Entropy is live, of course all hope is pinned on it.

As for more specific funding information, we’ll have to wait for the official announcement.

3. Trading data

Actually, everyone says Entropy is aiming to match #BLUR , but I’m not really agree—after all, the difference in trading volume is quite literally on a whole different level.

As shown in the chart, trade launched 100+ instruments, while our new friend Entropy only launched 2. And they’re using free quotas (not the “let’s be stingy only when we have to” vibe).

Trade’s trading volume is about 58 times Entropy’s; open interest is about 400 times Entropy’s… (-.-)

(Data source: https://hyperliquidguide点com/markets/hip-3)

So, do you still think Entropy can become the next Blur?

Fee and referral rewards

Speaking of trading volume, let me sneak in a quick word about fees and referral rewards.

(It really was just a convenience thing)

First, let’s talk about the difference in fees.

After hypeliquid launched hip-3, the market was split into native markets and third-party markets.

Native markets are markets hypeliquid sets up itself, like the contract markets for BTC, ETH, etc. The taker base fee is 0.045%.

For third-party markets, they’re contract markets set up by hip-3 via things like trade and entropy. The taker base fee is 0.09%.

In short, the fee rate of hip-3 pairs is 2 times that of the native market.

But with the trading pairs that hip-3 opens, the GM mode can be enabled. Trading data shrinks to 0.1x of the original, and fees are halved.

Currently Entropy’s trading pairs are in Growth Mode (GM). That means if you trade 10k u, it only counts as 1000 u.

As for someone saying the current trading fee is 0.009%—that’s probably a misread.

Under the GM model,

Trading volume is 0.1

Fees are also 0.1

So it’s still 0.09%.

But based on that 0.09% base, it will be halved again to 0.045%.

This halved fee rate is a benefit of the GM model, to attract users to new trading pairs for hip-3.

Next, let’s look at the referral rewards everyone cares about most.

Referral rewards

First, let’s get a basic concept down.

For trading on Entropy, half of the trading fees are collected by hypeliquid, and half are collected by entropy.

For example, if a user burns 100u in trading fees: hype gets 50, en gets 50.

And the 60% and such referral ratios shown in the picture only apply to the portion collected by en (the most important part).

Below I’ll give an example to explain the referral mechanism.

Let’s say A is T1 and invited B.

A burns 100u, and B burns 100u too.

A can receive 50x60% + 50x25% = 42.5u

B can receive 50x0.25 = 12.5u

If A is T4, and invites B

A burns 100u, and B burns 100u too

A can receive 50x200% + 50x100% = 150u

B can receive 50x100% = 50u

So only when the upstream reaches T4 can everyone truly farm volume without loss.

(assuming trading doesn’t incur losses)

(And when they launch, they give back all referral rewards to their downstream.)

(Official DOC source: https://docs.entropy.io/about-entropy/referrals)

4. Farm or not to farm?

Since ancient times, farming, or not farming—has always been a heavy question.

But as for Entropy, I think it’s not that hard to choose.

First of all, the project team hasn’t said they’ll issue a token—let alone a points plan.

(All based on the KOLs’ fantasies)

Second, Entropy’s trading volume isn’t high either, which suggests the big-shot scripts haven’t started running yet.

(Once it’s live, it means it’s worth farming, because they’ve got some inside info—we’ll wait for Insider Bro to board first.)

In the end, there isn’t a single great strategy—if you even have a T4, you’d still lose money in the early stage.

After thinking it through, it’s better to farm the dual-btoken win…

(Big position 20% + annualized yields, just eat whatever)

Last but not least

My personal suggestion: first wait for the project team to announce the points campaign, then decide whether to farm or not—don’t rush to send commissions.

Wishing everyone can eat meat on Entropy—and wishing me can drink soup on the dual tokens.

Thanks, dear, for seeing this far. Sadly there’s no bonus at the end of the article. See you.

X: jackyetsum (that little tail tag unique to the bn plaza)