Every perpetual on Hyperliquid has so far paid out along a straight line. Paragon is adding a family of curved-payoff perps, starting with HYPE², a contract that tracks the price of HYPE raised to the second power.

If the underlying doubles, a squared index reaches 4x its starting value and a cubed index 8x. Gains accelerate as the market rises and losses shrink as it falls, giving options-like convexity without strikes or expirations.

Each underlying and power trades in a single order book, so liquidity is not split across an options chain and there is no scheduled roll. Portfolio margin keeps spot, linear perps and power perps in one cross-margined account, and market makers hedge in existing Hyperliquid spot and perp markets.

Paired with linear perps, the contracts can approximate straddles, risk reversals and covered calls over a given price range. Paragon plans to ship a small set of ready-made directional and yield strategies at launch. The concept follows Opyn's Squeeth, an ETH² instrument that traded through a Uniswap v3 AMM.