Good Monday morning.

The whole crypto market was generally up this week, and the Hyperliquid ecosystem was no exception.

KNTQ led the charge in terms of percentage growth for its token price, likely a result of the buyback mechanism, which we talked about too.

We could get used to this, no complaints.

That said, it was not all smooth sailing. Let’s dive in, shall we?

Information gathered at midnight UTC at the end of the week. Swings are high, so for most up-to-date token prices, check Hyperliquid.

In news from the core team, we got a quick update about the volatility of FARTCOIN perps and its effect on the HLP (Hyperliquidity Provider) vault, which lost ~1.6m USDC backtopping a liquidation.

The team’s statement is below:

This kind of attempt of manipulation has happened before, and it’s likely to happen again.

While the team was less prepared for the first one, the vault has been handling the following such events better, and the team generally got better at delisting assets that could cause issues, or at least adjusting parameters like leverage and OI caps.

And you might be thinking that the 1.6M USDC loss is significant and warrants drastic action, but we’ll say two things:

1) You have to zoom out. The vault has a positive PNL of ~140M USDC since inception.

2) The vault is an active market maker that does not receive priority so while it generally makes a profit, it is not guaranteed, and volatility is expected. Sometimes it gains a significant profit in such events, sometimes it does not. 

In general, the vault’s importance is greatly reduced, so when it is needed and active, it seems like an exceptional situation.

In less controversial news, priority fees have been enabled on testnet.

You can read the current documentation on the two types of priority fees here.

It’s difficult to judge how impactful this will be in terms of HYPE usage, but @Yaugourt did an interesting breakdown here with 3 relatively likely situations.

In short, it’s unlikely to be a significant boost in times of low volatility, but the spikes will be significant and actually impactful across a whole year. 

Not as impactful as the Assistance Fund burn mechanism but it’s another use case (and demand increase) for HYPE.

One point of contention about Hyperliquid is the fact that its node client is not open source, which means the code that runs the network is not visible.

Well, HypurrFi co-founder @androolloyd managed to reverse engineer it. 

This means there’s less trust assumptions that you need to make, and others can also verify the Hyperliquid chain independently, as @yaugourt explains. 

We’d recommend following both for progress on this and what it means.

And you can also check out this website, which serves as a hub for all findings and useful resources.

We’re very excited about this one, if it’s done right.

Perps on tradfi assets have been a great success, as we’ve already mentioned before, thanks to some HIP-3 deployers like Trade[XYZ].

The missing and albeit less exciting part is spot tradfi assets.

Felix has integrated Ondo assets into their own platform, but not into the Hyperliquid orderbook.

Melt is the project looking to take this one step forward and bring those Ondo tokenized assets to Hyperliquid’s orderbooks/

The execution of this matters a lot, because they need to make sure there’s enough liquidity for this, but generally a needed step in the road to house all of finance.

We’re looking forward to checking this out in the coming days once it goes live.

HyperLend introduces a redesigned interface. A big rebuild worthy of being called a 2.0 version, which offers a much better integration across Hyperliquid (EVM + Core), rather than being focused on HyperEVM. 

Hypurrintel is a new bookmark for Hyperliquid data for us. Data on buybacks of HYPE and other tokens like PUMP, LIT, SKY, and AAVE. DAT companies data, HIP-3 analytics, and more. Very helpful for keeping track of activity increase and buyback impact.

Liminal launches xLEND. A token that captures money market yield across Hyperliquid’s ecosystem, with deployment in lending protocols and the portfolio margin vaults. The value proposition is two-fold: you don’t have to manage your positions manually, and it’s a yield-bearing token that has favorable tax treatment in many jurisdictions.

Ventuals launches WHEAT perps, and we’re not impressed. Given that the 500k HYPE stake has already been reached, it means depositors cannot opt out without a 10%+ penalty based on current secondary market rates. We think the concept from Ventuals is far from what they initially pitched to the community. Their communication has also been atrocious. Hope you’re not caught up in this mess.

Felix points season ends, TGE likely coming soon. After one year, which was a relatively long points season, Felix announced the final distribution took place on 10th April 2026. We were not very active with Felix, but they are certainly one of the top 10 most interesting projects in the ecosystem, so their TGE should be at least up there with HyperLend’s.

Hyperbeat’s Liquid Banking is now open for everyone. We already tried it out a few weeks ago and gave you our first impressions. There have been some UI and UX improvements since then. We also did one more offramp that worked smoothly in off-hours, so overall, we think this is going to be a key product in the Hyperliquid ecosystem.

KNTQ price will get interesting vs HYPE because of buybacks. We’ve sold 66% of our KNTQ from the first airdrop when the HYPE/KNTQ ratio went under 300, and given that buybacks are now consistent, we are likely to continue with the plan we outlined here.