Hello alpha seeker,

The House of all Finance paper by @smartestxyz was published this weekend and it’s a must-read.

We haven’t gone through it yet but this will be the reference for everything related to the Hyperliquid ecosystem.

It’s a deep dive into all projects and use cases. Hats off to @smartestxyz for publishing this for free.

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

This is a significant liquidity unlock, a huge step for more capital efficiency across all of Hyperliquid.

And capital efficiency translates into more activity across all pairs and markets.

This is still only available for accounts with over $5M in volume, so it’s not a default available for everyone…

Plus, as the announcement says, there’s still only HYPE and BTC available as collateral, no ETH, no SOL, or other tokens yet.

If you’re at or close to $5M volume, this post from Alex is a pretty good rundown of real-world experience.

One clarification: Calling this BLP is from a previous find in the code but the official name (and purpose) is portfolio margin. 

Have you checked our LST post already?

The dangers around liquidity for a HIP-3 LST are turning into reality with vHYPE at just over 565k HYPE still left in the contract.

Keep in mind that 500k HYPE is locked and at that point, it cannot be withdrawn.

This situation made vHYPE trade as low as $9 on secondary markets while HYPE was over $37.

To be clear: This is not a depeg in terms of funds but a liquidity crunch where people prefer to pay a penalty rather than stay in vHYPE.

We haven’t followed very closely since our exit on week 2 from this so-called LST but we’re not shocked. We’re more surprised it took so many months for it to reach this stage.

Alvin, co-founder of Ventuals, did address this, and they are working on a backstop of 0.85 HYPE per vHYPE, so a 15% cut.

If you don’t need the liquidity, we’d wait it out… Ventuals will likely close down later this year or it will succeed enough to replace/trade close to parity.

If you do need the liquidity, you’re kinda late already but alternatively, you can keep an eye on certain rates in secondary markets, and you can do smaller swaps to avoid bigger slippage sometimes.

Either way, not a great situation, but it was something most people could have avoided.

You can check it out on the testnet link showed above in the post from Jeff…

We had a look, and well, it’s certainly early…

The UI being similar to the one for perps and spot trading makes this worse than Polymarket or Kalshi for prediction markets but that’s a small thing that can easily be adjusted.

The other significant unlock is recurring binary options, which might be even more significant than prediction markets like Polymarket.

The good thing is the UI can easily be upgraded, plus all other frontends can build something even better.

Another unlock of this is the demand for USDH, which will be the stablecoin of choice for validator-deployed HIP-4 pairs.

We assume permissionless HIP-4 will be happening too, maybe in a HIP-4 upgrade or as a HIP-5, similar to HIP-3.

From testnet to mainnet usually takes the team a few months, so we it’s shaping up to be another Hyperliquid summer.

Trade XYZ updates Discovery Bounds. One major idea behind HIP-3 is 24/7 markets, even during off-hours for TradFi. The challenge is letting the market finding a fair price that isn’t absurd compared to the regular hours fair price. There have been growing pains with this and v2 is how Trade XYZ tries to improve things.

HyperLend introduces compliance-gated private pools for institutions. Hyperion DeFi working together with HyperLend announced the first Private Lending Pool for institutions, allowing large-scale entities to borrow against HYPE.

Hyperliquid Research Collective compares Hyperion DeFi and Hyperliquid Strategies. Aka HYPD and PURR, they are both two NASDAQ-listed HYPE DATs, but both with a slightly different take. This comparison is extremely helpful to look at if you are looking to decide to get HYPE exposure using your traditional broker.

The BASED airdrop checker went live. If you traded on the Based frontend, you probably qualify for the airdrop. We don’t expect this to be life-changing but it’s a good add-on for any stack.

HyperBeat added more on- and offramp options for their Liquid Banking product. It’s one of the products we’re most excited about as users in the ecosystem. We’ve signed up for the private beta to give it a try and so far, so good. Important to remember this includes KYC and can associate your wallet with your identity. We’d recommend using a fresh wallet for offramping, usually cleaner both for privacy and for tax calculations.

USDH mint and burn through Across Protocol coming soon. Speaking of on- and off-ramp, another option could be provided by Across Protocol, at least based on this short clip from an interview they did.

Silhouette passes tier discounts to all its users. It’s one of the situations in which you might have it cheaper to trade on a different frontend rather than the native one. Silhouette is focused on bringing a privacy layer to Hyperliquid trading but its working to improve user experience as a whole with their UI and things like discount tiers.

Byreal integrates Hyperliquid trading. Not the first and probably not the last Solana-focused product to integrate Hyperliquid. We don’t expect the same impact as Phantom had of course, but considering this is a project incubated by Bybit, it’s another proof of the quality Hyperliquid brings to onchain trading.

Native Markets announces pmUSDH. The first use-cases of Portfolio Margin was already announced by Native Markets, who is working on a tokenized vault allowing users to supply their USDH and earn yield while staying liquid in DeFi.

More headlines about Hyperliquid in traditional finance media. After WSJ, Bloomberg, and Fortune all wrote about “a blockchain called Hyperliquid”, this certainly turned heads and more publishers will look into it.