Felix will shut down the DEX on June 19, becoming the first deployer of HIP-3 to formally close.

On June 8, decentralized derivatives platform Felix announced that due to the suspension of stablecoin USDH, the Felix DEX (built on HIP-3) and all active trading markets will begin gradual winding down starting June 19, with full liquidation wrapping up by June 20. The platform is reminding traders to close their positions ahead of time, noting each market will settle sequentially with a one-hour gap between adjacent markets. Community member Shaunda Devens commented that Felix is the first official HIP-3 deployer to shut down, and this may only be the beginning. Devens stated that except for TradeXYZ, the rewards other deployers earn via HYPE staking and auctions are not competitive. Hyperliquid community member aaalex.hl pushed back, arguing Felix’s shutdown appears to be mainly tied to USDH’s suspension rather than market share pressure from TradeXYZ. In response, Devens agreed USDH is one of the factors, but added Felix opted to shut down its DEX entirely instead of remaining a HIP-3 deployer with USDC trading pairs. Though not directly impacted by TradeXYZ, Devens explained TradeXYZ dominates major markets, forcing other deployers into niche segments that can’t cover auction costs or justify the opportunity cost of staking 500,000 HYPE. Additional details emerged: Hyperion, which leased HYPE tokens to Felix, is reclaiming those assets and plans to reallocate the funds to higher-return strategies.