HypurrFi: Enabling Traders and Institutions Multiply Money

Unarguably, Hyperliquid is locked in as the top onchain perps venue. It leads in volume, outpaces every competitor, and puts real pressure on the centralized-exchange mafia.

Both retail and institutional clients, including digital asset treasuries (DATs), continue to flow into Hyperliquid and the products built around it, especially after HIP-3 unlocked a new wave of adoption. 

However, the growth and maturity of the Hyperliquid ecosystem revealed a significant challenge, particularly with respect to capital freedom. 

For example, as HIP-3 markets like Ventuals and Trade[XYZ] grow and generate more revenue, they create a unique issue for the HYPE token. 

The large stake requirement of 500,000 HYPE to launch HIP-3 exotic markets incentivizes whales to hold-in-lieu or lock their tokens to fund more HIP-3 markets, thereby taking the HYPE token out of circulation.

Beyond this, the rise of corporate structures like DATs doesn’t help the situation either, as it further leads to more HYPE lock-ups, reducing supply and restricting the flow of capital. DATs also have institutional compliance requirements that limit onchain lending. 

Reducing circulation creates a bottleneck if demand for markets and corporate vehicles remains constant. While this intends to capture value, it creates friction where capital ultimately remains restricted.

Moreso, in the Hyperliquid ecosystem, yield on stablecoin assets such as USDT0 and USDC is not boosted by foundation grants and programs, unlike on other networks, market participants face the reality of unsubsidized borrowing costs. 

Consequently, most yields are not artificial; they are the organic output of a high-demand, supply-constrained ecosystem. 

We believe that this creates a massive untapped potential in pairing Hyperliquid’s under-utilized connectivity (a disconnect between rich liquidity and high-yield opportunities) with primitives that traders actually want - in an environment where capital moves and compounds frictionlessly, and by a team experienced enough to orchestrate the gears. 

It is within this context, particularly timely with Hyperliquid’s recent launch of portfolio margin, which unifies spot and perpetual accounts, enables automatic yield on idle assets, and explicitly synergizes with HyperEVM lending protocols like HypurrFi rather than competing, that our focus for today appears increasingly inevitable from both a competency and execution standpoint. 

In the following few paragraphs, we will re-establish what HypurrFi is beyond what you might have imagined. Without boring you, we will get into the weeds of how the platform functions, its technical moats, and the non-technical drivers behind our optimism about the future of HypurrFi. 

What is HypurrFi? 

HypurrFi is a composable DeFi protocol on the Hyperliquid EVM and the exclusive partner leveraging the full Euler technology stack. 

By orchestrating these battle-tested primitives, HypurrFi unlocks capital efficiency and enables sophisticated markets within the Hyperliquid ecosystem. 

HypurrFi synthesizes pooled lending, credit card spend, earn, leverage, and vaults into a unified connectivity layer. 

Rather than isolating these services, HypurrFi enables traders to seamlessly combine them, creating the complex strategies necessary to exploit high-value yield opportunities within the Hyperliquid ecosystem.

HypurrFi will also support multiple HIP-3 markets, enabling users to trade a diverse range of exotic assets from a single terminal and leverage other DeFi services within the platform. 

In the next few sub-headings, we will go through the products and services offered on HypurrFi.  

HypurrFi’s product suite

Delivering a standout trading experience requires a deep understanding of trader behavior. The best way to do that is by engaging with them, identifying what they value most, and then shipping the product they’re looking for. 

This is the approach HypurrFi takes to delivering an array of retail and institution-friendly services for trading, spending, earning, and growing.

HypurrFi exclusively uses audited, production-proven primitives, forking or partnering with these products. 

We’ll go through some of these primitives: 

Mewler: HypurrFi Markets 

HypurrFi’s Mewler Markets is an exclusive partnership with Euler that brings Euler’s modular lending architecture to the Hyperliquid EVM. 

This means that Mewler markets are designed to enable any asset to serve as collateral for a lending market, thereby allowing issuers and LPs to grow TVL and utility from zero to billions, bootstrapping liquidity based on defined parameters for the asset pairs. 

These parameters are not defined arbitrarily. HypurrFi partners with Clearstar Labs to ensure that markets are customized for efficiency, route selection, and risk isolation. Clearatar also prioritizes risk-adjusted sustainable returns.

With this in place, and with the help of the Euler Vault Kit (EVK) and the Ethereum Vault Connector (EVC), Mewler invites developers and others to build custom markets. 

They can choose from simple markets such as collateral-debt pairs to more sophisticated, bespoke markets and earn from vaults that offer users capital-efficient returns.

Unlike the pooled markets, Mewler offers users access to non-native markets.   

Pooled Markets 

For HypurrFi’s pooled markets, the choice is a fork of Aave V3’s proven open-source lending contract. 

Users can perform simple lending and borrowing transactions to earn yield, engage in looping for carry trades, participate in leveraged yield farming, or build directional exposure with spot assets. 

HypurrFi’s pooled markets combine all supplied assets into a single unified collateral base rather than treating each token as an isolated position.

The system determines borrowing power from the overall portfolio health factor. This shared-liquidity design dramatically boosts capital efficiency.

Moreso, whitelisted assets are not selected arbitrarily. HypurrFi partners with Clearstar Labs, an independent risk firm that rigorously analyzes liquidity, onchain behavior, and asset quality to curate the whitelist of tokens eligible for supplying, borrowing, and collateral use.

Pooled markets are divided into HYPE-correlated assets, USD-correlated assets, and major assets such as UBTC, UETH, USOL, and XAU0, and accept a range of Hyperliquid native collateral assets, including Pendle fixed-yield principal tokens for HYPE LSTs.  

Users can take advantage of pooled markets to leverage or loop their deposited yield tokens in efficient collateral mode, which extends the LTV ratio (the size of the loan compared to the value of the collateral deposited) for asset pairs within the same category (correlated in price movements). 

HypurrFi Swap 

HypurrFi provides a swap product that allows users to exchange assets directly on the protocol’s frontend. This feature, called PawSwap, functions as a swap aggregator that routes liquidity through GlueX to provide the best pricing for assets on the HyperEVM. 

HypurrFi Swap also routes liquidity and fulfills swap requests via HypurrFi’s native market liquidity. 

Deposits into HypurrFi markets can be used to provide liquidity for swaps, including enabling Just-in-Time (JIT) liquidity for low-liquidity pairs by borrowing liquidity from market pairs, using the swap’s deposited assets as collateral. 

HypurrFi swap supports liquidity for HyperEVM assets (the ones with low liquidity and the ones with sufficient liquidity, both are covered), making HypurrFi Swap an extremely capital-efficient option for native and non-native assets on Hyperliquid. Future integrations will enable much deeper liquidity pools, making liquidations and swaps for correlated assets a lot steeper. 

Swype Card 

The HypurrFi credit card (powered by Swype) is integrated into HypurrFi, enabling users to spend crypto daily without liquidating their positions or assets. 

To use the credit card, a user must have deposited collateral onchain within HypurrFi, and must complete KYC while living in a region legally permitted to participate. 

Users’ status can be checked on the Card portal, making it easy to confirm whether a user is ready to activate. A full public rollout for Card access is coming very soon.

Interest and repayment are both fully governed by HypurrFi market rates, which fluctuate based on asset utilization.

Interest accrues every second and compounds smoothly to match the annual APY shown in the app, so you only pay the posted rate over the course of a year. Users can repay with any supported asset or refinance into a new borrowed asset at any time. 

Regarding fees, there is a 0.5% workflow execution fee on USD payments, with additional Visa FX fees on non-USD purchases.

HypurrFi Earn Vaults 

HypurrFi provides Earn Vaults (powered by the Euler Earn stack) for those who delegate their capital to strategists, earning only the yield while the vaults do the work. 

These vaults provide a streamlined way for users to gain exposure to Hyperliquid DeFi without needing to manage individual lending or borrowing positions.

HypurrFi Earn Vaults function like yield aggregators. They deploy capital across a curated set of strategies managed by expert risk curators. 

Curators such as Clearstar Labs (launch-approved curator) will actively rebalance positions, maintain liquidity levels, and continuously assess risk to keep the strategies aligned with market conditions. 

Other highly specialized curators will be onboarded for compliant institutional vault curation.

They can rebalance allocations but cannot withdraw user funds, ensuring depositor control remains intact. 

Any curator can launch an Earn Vault; however, most of these vaults will exist outside the HypurrFi frontend. For a vault to appear on the HypurrFi frontend, it must meet a series of stringent requirements to be featured. 

Other features 

HypurrFi continues to expand with more products set to launch in due course. These products, like the aforementioned ones, will reflect the true sentiment of traders and institutions regarding what they want and need. 

An example is the integration of collectibles markets with PKMN, an index of high-value Pokémon collectibles as a spot, perpetuals, and lending market asset.

Progressively, HypurrFi will power multiple HIP-3 markets on a single terminal, giving traders access to a variety of tradable assets and integrated DeFi primitives to fully leverage them and maximize yield. 

What makes HypurrFi different? 

Foremostly, a protocol is really only as good as those behind it. Time and over again, we’ve witnessed great products or ideas suffer in the hands of teams with poor execution, often lacking in experience. 

Although this may seem mundane, it is quite essential in context, particularly given the reputation Jeff Yan and the Hyperliquid team have established. 

For perspective, Hyperliquid operates with a core team of just eleven people (roughly half in engineering, half in other roles), as confirmed by CEO Yan. This includes alumni from Harvard, Caltech, and MIT, as well as from firms such as Citadel and Hudson River Trading. 

This trend extends to HypurrFi - the similarity is evident in how cracked the team is, lean, and populated by veteran builders and traders with experience from Aave, Kraken, Chainlink, SwissBorg, Astaria, Gitcoin, Magic Eden, Status, Blockcrushr, Hypergive, and other seasoned protocols. 

Another thing that stands out with HypurrFi is how uncompromising the team has been in prioritizing organic growth over inflating TVL with mercenary capital. 

For HypurrFi, real, organic activity stems from building what traders actually want. 

To achieve this, the team, comprising traders themselves, leverages their expertise and network to regularly consult with seasoned traders before building primitives based on analyzed feedback. 

The result is a deeply aligned ecosystem with widespread acceptance of native assets and support for Hyperliquid ecosystem primitives and a TVL ATH of ~$215.7 million (reaching ~$378 million when combined with the $162.9 million ATH for borrowing metrics), which is important considering HypurrFi’s focus on organic growth.

The icing on the cake is that the ambition to build a one-stop shop for multiplying money on the Hyperliquid EVM for all kinds of traders, including institutions, is a feat HypurrFi can easily accomplish with seamless execution, thanks to the protocol's native integration with Hyperliquid’s unmatched liquidity engine. 

This enables HypurrFi to tap into an existing user base of capital-rich traders and trading entities, offering them high-yield opportunities within a well-executed environment that supports a diverse array of primitives. 

Lastly, HypurrFi is not only backed by key investing vehicles such as Robot Ventures, Arrington Capital, Breyer, and others - the protocol is also aligned strategically in terms of partnerships such as Euler, Objective Labs, Native Markets, Paxos, Pyth, Redstone, and GlueX, all of which support integrated primitives and the functionality of the entire architecture.   

How does HypurrFi mitigate risks? 

DeFi, whether sophisticated or straightforward primitives, comes with several risks that cannot be overlooked. 

In this regard, HypurrFi understands the need for in-depth security measures and proper risk management across every integrated primitive within the app, beginning with the fact that each primitive is built on an audited, proven, and battle-tested contract. 

HypurrFi partners with Clearstar Labs to conduct continuous reviews of conditions required for listing assets across all supported markets. 

This includes evaluating which asset pairs may be associated with one another, assessing liquidity conditions on Hyperliquid, and monitoring broader market fundamentals, such as the accuracy of the integrated price oracle, which can impact liquidation efficiency. 

Borrowing levels or LTV ratios and other core risk parameters are calibrated based on these assessments to ensure resilient margining and minimize the probability of bad protocol debt.

In terms of general OpSec, HypurrFi engages multiple veteran security firms specializing in front-end, back-end, onchain, phishing, and hardware operational security. 

Concluding thoughts 

Hyperliquid has proven to be more than a simple perp DEX. At the moment, it serves as a colossal foundation for onchain finance, allowing projects like HypurrFi to leverage its robust, deep, and reliable engines to deliver even more value to traders. 

HypurrFi understands this and is building toward housing all of finance. This idea thus goes far beyond a mere onchain lending platform, to encapsulate a curated full DeFi experience through primitives that reflect the appetite of traders and institutions. 

For traders, HypurrFi unlocks capital, provides high-yield opportunities, and helps maintain continuous exposure to the premium on HYPE as a sound, fundamentally robust asset. 

For institutions, HypurrFi provides an organic playing ground to execute sophisticated, highly liquid strategies, capturing significant yield for their users. 

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Thanks to the HypurrFi team for unlocking this article. All of our research and references are based on public information available in documents, etc., and are presented by blocmates for constructive discussion and analysis. To read more about our editorial policy and disclosures at blocmates, head here.