Private companies do not have a continuously updated market price. Their valuation usually comes from funding rounds negotiated between a small group of investors, leaving everyone else with little ability to express a view until the next transaction.
Entropy aims to turn those valuations into continuously traded markets. The Hyperliquid HIP-3 deployer launched with a reported $14M raise led by Ribbit Capital and a $40M HYPE stake, with its first flagship market tracking Anthropic’s implied valuation.
In this edition, we look at how Entropy creates a price for assets that do not trade, how its oracle decides when to trust its own market, and what happens when there is no eventual spot market to settle against.
What Entropy Is
Entropy is a HIP-3 deployer, with perpetuals on global equities, indices, commodities, and pre-IPO names (Entropy pairs are labelled “io”). HIP-3 lets Entropy define its own assets, risk parameters, oracle, and front end while using Hyperliquid’s matching engine, settlement infrastructure, and existing trader flow.
Currently, there are no public share count information for calculating a per share price, and private market marks from secondaries, tenders and fund valuations arrive too infrequently to serve as a live reference. Entropy solves the first by quoting market capitalization directly, while the second requires its own market to become part of the pricing process.
Pricing An Underlying With No Spot Price
Entropy blends its orderbook midpoint with an aggregate of external private market data. The internal price is a 5-min EMA, but its influence is gated by executable two-sided depth within 200bps of mid, with resting liquidity discounted based on how likely it is to actually fill.
When the book is deep, Entropy can give its own market up to 95% of the oracle weight; when liquidity disappears, the external reference takes over. A trader therefore cannot move the oracle cheaply through an empty book because the oracle becomes less responsive to the book when depth falls. Withdrawn liquidity also loses influence faster than newly posted liquidity gains it, limiting the value of spoofing size into the market.
This means the pricing of the perp is determined largely by how trustworthy the liquidity is. That also explains the lower funding multiplier: aggressively tethering the contract to an external reference would penalize traders for discovering information that the external reference has not yet incorporated.
Anthropic Pre-IPO Markets
If Anthropic remains private through expiry, ANTH settles against the 30-day TWAP of its own mark price. The contract therefore does not necessarily converge to Anthropic's eventual fundamental or IPO valuation, instead settling on the consensus that the market itself has produced.
More depth gives the market more authority over its oracle, credible pricing attracts more flow, and more flow creates the depth needed to make the oracle credible. If that loop works, Entropy can turn a private valuation into a continuously updated market price. If it does not, the oracle falls back toward stale private market data.
Hyperliquid’s broader pre-IPO markets have already shown that these contracts can sometimes converge closely with eventual public prices. For instance, its Cerebeas (CBRS) market finished within 1.3% of the company’s $350 Nasdaq opening price. Entropy is now betting that the same market structure can work before an IPO, even when there is no external price to anchor it.
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