What happened
ChangXin Memory Technologies (CXMT) is set to debut on China’s STAR Market on July 27, marking a critical test for the pricing mechanism of Hyperliquid’s CXMT perpetual contract. According to on-chain analyst Ai Yi, the contract’s price feed, funding rate, and liquidity will face a major adjustment as the system transitions from a pre-IPO internal oracle to A-share real-time price feeds.
Why it matters for the market
Once the STAR Market opens and sufficient external price data becomes available, Hyperliquid will automatically switch the CXMT contract’s price anchor from its internal order-book-based oracle (via TradeXYZ) to an external oracle tracking CXMT’s A-share spot price, adjusted by real-time exchange rates. The external oracle updates approximately every three seconds with a ±1% change limit per update, ensuring a gradual convergence even if the pre-IPO price deviates significantly from the actual market price. However, liquidation risks remain during this adjustment.
In terms of funding rates, the CXMT contract will revert to normal parameters after the listing. During the pre-IPO phase, the funding rate multiplier was reduced to 0.005 (1% of the normal 0.5) to lower holding costs for long-term traders. Post-listing, the multiplier will return to 0.5, reactivating the funding rate’s balancing function.
During A-share market closing hours, the CXMT contract price will revert to an internal oracle based on Hyperliquid’s own order book, effectively entering an “internal market” phase. Price swings during this period are capped by the Discovery Bound mechanism, allowing a maximum adjustment of ±20% per anchor reset, with up to seven dynamic boundary adjustments to mitigate manipulation risks amid low liquidity.
As a newly listed stock on the STAR Market, CXMT shares will have no price limits for the first five trading days, but constraints still apply: the call auction period runs from 9:15 to 9:25 (orders can be canceled only between 9:15-9:20), and if the price rises or falls by 30% or 60% from the opening, a 10-minute trading halt will be triggered (up to four times per day). From the sixth trading day onward, standard STAR Market price limits will take effect.
As of July 26 at 17:40 (UTC+8), Hyperliquid’s CXMT contract had an open interest of approximately $63.9 million, with a contract price of around $6.18, equivalent to about 41.9 yuan. Based on this price, CXMT’s implied market cap is roughly 2.8 trillion yuan, slightly exceeding Industrial and Commercial Bank of China’s 2.76 trillion yuan market cap. Market participants are watching whether CXMT can become one of the highest-valued companies on the A-share market.
What traders should watch
With CXMT’s spot trading about to begin, Hyperliquid’s experiment in using a decentralized derivatives platform to price a traditional stock IPO will face its first large-scale real-world test.
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