# Definitive Guide to Earning Miles and Securing your Stake in the Hyperdrive Token By [Hyperdrive Protocol](https://paragraph.com/@hyperdrive-protocol) · 2025-03-18 --- The Hyperdrive token is coming, and the more you engage with the protocol, the larger your allocation will be. **Hyperdrive Miles** are the key. They reward users who provide liquidity, engage in leveraged rate operations, and utilize **Fixed Borrow**. **What Are Hyperdrive Miles?** ------------------------------ Hyperdrive Miles are **your on-chain record of engagement** with the protocol. Several actions you take—supplying liquidity, opening Shorts, or borrowing at fixed rates—earn you Miles. Miles are permanently tied to your address. They **can’t be transferred** and **never expire**. **Why do they matter?** Your Hyperdrive Miles will determine your allocation of **Hyperdrive’s new token**, which will **replace ELFI**, Element DAO’s legacy token. **Miles Grant You Access to the Airdrop** ----------------------------------------- Hyperdrive will reward users who have accumulated Miles with **an allocation of the new token**. Details on the distribution date are coming soon, but one thing is clear: * **Users with a larger share of Miles will receive a larger share of the new token.** If you’ve been using Hyperdrive as an LP, you’ve already been accumulating Miles since day one. And if you haven’t started yet, there’s still time to **boost your share before the cutoff date.** **Important:** The current token, **ELFI**, will not coexist with the new token in the long run. ELFI holders will go through a migration process to transition to the new token once it launches on Ethereum. **How to Accumulate Hyperdrive Miles** -------------------------------------- There are **three primary ways** to earn Miles: ### **Providing Liquidity (LP)** Liquidity providers play a critical role in Hyperdrive and are rewarded with: * **1 Mile per $1 supplied, per year**. For example, if you supply **10,000 DAI** to the **Savings DAI** pool: * After **one year**, you will have earned **10,000 Miles** (on top of the variable yield). * If you withdraw after **six months**, you will have **5,000 Miles**. If you’ve been an LP since Hyperdrive’s launch, **you’ve been earning Miles all along.** ![Liquidity providers are rewarded with 1 Mile per $1 supplied, per year.](https://storage.googleapis.com/papyrus_images/573d3daa4367720f62665d8d40aa55c2da5b8b437bc83e6ac213fc04e05f2278.png) Liquidity providers are rewarded with 1 Mile per $1 supplied, per year. ### **Taking Short Positions** Opening a **Short** in Hyperdrive lets you gain **leveraged exposure** to variable rates by paying a fixed amount upfront. The **higher the multiplier, the more Miles you earn.** Users with open Short positions will be rewarded with: * **1 Mile per $1 paid, multiplied by the exposure multiplier, per year.** If a pool offers a **20x multiplier**, every dollar you pay to open a Short earns you **20 Miles per year**. Multipliers vary by market. Let's go through an example to make this clearer: * You open a Short in the **Lido stETH pool**, paying **1 ETH (~$1,900)** to get variable yield exposure at a **68.2x multiplier**. * If the Short runs for **182 days**, the Miles earned are **64,612** (1,900×68.2\*182/365) That’s a substantial boost to your future token allocation. Not all pools have the same multipliers—some offer much **higher rewards** than others. Keep an eye on **X and Discord** for updates on the latest opportunities. **Remember:** Miles for Shorts accrue **as long as the position is open**. Any open Short between **February 1 and** **April 30** will qualify for the airdrop. ![Users with open Short positions will be rewarded with 1 Mile per $1 paid, multiplied by the exposure multiplier, per year.](https://storage.googleapis.com/papyrus_images/f4e801fe094a736c258f9b2633b07f7c12da3d74ddd71caa404d08499a5f087e.png) Users with open Short positions will be rewarded with 1 Mile per $1 paid, multiplied by the exposure multiplier, per year. ### **Opening a Fixed Borrow Position** Fixed Borrow allows users to lock in a borrowing rate on **Morpho markets** while earning Miles **at the same multiplier rate as Shorts.** * **1 Mile per $1 paid, multiplied by the exposure multiplier, per year.** Imagine you pay **1,500 DAI** to open a Fixed Borrow position in the **USDe/DAI** pool at a **25x multiplier**. * Over **one year**, you would earn **37,500 Miles** (_1,500 × 25_). * If the position runs for **six months**, you would earn **18,750 Miles**. All **Fixed Borrow** open positions between **February 1 and** **April 30** will receive Miles as explained above. ![Fixed Borrow users earn Miles at the same multiplier rate as Shorts.](https://storage.googleapis.com/papyrus_images/a4204d4f22b2e6fda9873fca9d3a4cf88e5e0f6d1d9cd31a54bc7dcdf0bc1e1e.png) Fixed Borrow users earn Miles at the same multiplier rate as Shorts. **Start Now** ------------- Earn **Miles** and claim your stake in the new token—whether you're **providing liquidity, leveraging variable rates, or using Fixed Borrow**. Maximize your allocation before the window closes on April 30 (subject to extension). 🔗 **Check your Miles** → [https://app.merkl.xyz/user/](https://app.merkl.xyz/user/) 🏆 **Track your rank** → [https://app.hyperdrive.box/leaderboard](https://app.hyperdrive.box/leaderboard) 🏎️ **Start earning now** → [app.hyperdrive.box](http://app.hyperdrive.box/) Jpin [**Hyperdrive’s Discord server**](https://discord.gg/ZbyAgtk8Q3), stay updated and connect with other contributors --- *Originally published on [Hyperdrive Protocol](https://paragraph.com/@hyperdrive-protocol/definitive-guide-to-earning-miles-and-securing-your-stake-in-the-hyperdrive-token)*