Project X: Concentrated Liquidity on HyperEVM
Why an AMM can remain useful beside HyperCore's order books, and how concentrated liquidity changes capital efficiency for spot markets.
Project X is an automated market maker on HyperEVM. It provides permissionless spot pools and liquidity provision through smart contracts, complementing the native order-book markets that live in HyperCore.
DefiLlama lists about $45.4 million of Project X TVL on Hyperliquid L1 as of August 31, 2026.
Why have an AMM if HyperCore already has order books?
The two systems solve different problems. HyperCore's CLOB is optimized around explicit bids and asks. An EVM AMM lets anyone create a pool through smart contracts, compose liquidity with other applications, and support long-tail tokens without requiring every market to use the same native listing path.
An ecosystem can therefore use both: native order books for market structure and AMMs for permissionless smart-contract liquidity.
Concentrated liquidity uses capital inside a range
In a basic constant-product AMM, liquidity is spread across every possible price. Concentrated liquidity lets an LP choose a narrower range where its assets actively quote.
That can produce more depth per dollar near the current market price. It also makes LP management harder because a position can move out of range and become concentrated in one asset.
LP returns need decomposition
A liquidity provider can earn swap fees and protocol incentives, but those returns sit against several risks:
- adverse selection against faster or better-informed traders
- divergence between the two assets
- range-management errors
- smart-contract risk
- incentive yields that may decline
High volume is useful only if the fee economics compensate for those costs.
Project X's role in the stack
Project X is a good example of HyperEVM doing something HyperCore does not need to do itself. Developers can build an independent spot liquidity layer using standard EVM patterns while staying in the same broader Hyperliquid network.
The result is not "AMM versus CLOB" as a winner-takes-all question. Hyperliquid can support both market structures and let applications route users toward whichever pool of liquidity fits the trade.