Paragon launched Power Perps, with the first market being HYPE²

Paragon, the market deployer of HIP-3 on Hyperliquid, announced the launch of Power Perps, with the first product tracking the square of the HYPE price, HYPE². Paragon stated that Power Perps will incorporate option-like convex returns into perpetual contracts, without a strike price or expiration date, tracking the power of the underlying price.

According to Paragon, if the underlying price doubles, the square index reaches 4 times the initial value, and the cubic index reaches 8 times; for every $1 increase in the underlying, the index increase is greater than the previous dollar, while the decrease is smaller when it falls. This design references Power Perpetuals proposed by Dan Robinson, Dave White, Andrew Leone, and mentions that Opyn previously demonstrated the perpetual convexity of ETH² with Squeeth on Uniswap v3.

Paragon claims that Hyperliquid features a high-performance order book, spot and linear perpetual markets available for hedging, and portfolio margin, allowing market makers to hedge their exposure to Power Perps in these markets. Its goal is to establish a convex trading market alongside the major markets on Hyperliquid. Paragon has previously launched crypto-native index perpetual markets such as Bitcoin Dominance, TOTAL2, and OTHERS on Hyperliquid.