Hyperdrive was created with a vision - The stablecoin market will be crypto’s largest and fastest growing vertical.

Though this view may be consensus today, the foundations for Hyperdrive to support this vision begun to be built many years ago. As we prepare to launch, we will outline below why we chose to focus on stablecoin lending, and why on Hyperliquid.

Just 5 years ago in 2020, Ethereum had found its flagship product - DeFi. With just over $600M in TVL at the start of the year, DeFi grew explosively and hit a whopping $15.5B TVL by the end of the year. That’s a growth rate of 2583%.

Yet one vertical stood out to us — stablecoins. People were using it to beat bank account savings rates, conduct remittances, make payments and protect themselves from hyperinflationary currencies. The eventual proliferation of stablecoins was extremely obvious to us.

Today, we have behemoths in USDC, USDT0, USDe, and the total circulating stablecoin supply amounts to >$243 billion.

There was one problem however, DeFi yields were unsustainable and declined in 2022. This led to an outflow of stablecoins from the market as people redeemed them for cash.

So the question we posed to ourselves were — how do we ensure yields are sustainable for our users?

Enter Hyperliquid.

The Hyperliquidity Provider (HLP) is Hyperliquid’s market making vault. Its performance is driven by proprietary strategies set by Hyperliquid, as well as priority access to liquidation orderflow.

This had instantly caught our eye, as HLP derives it yield from sustainable mechanics unlike many ponzi-like sources we have seen in the past. This is why we started building on Hyperliquid.

Tokenized HLP and using it as collateral will be enabled on Hyperdrive once Hyperliquid dependencies are available.

As Hyperliquid grows into the House of Finance, we foresee a myriad of activity taking place on it. More assets through tokenization protocols such as Hyperunit, more stablecoins such as Ethena’s USDe and USDT0, more vaults, payment rails, NFT projects, yield farming opportunities, etc.

Hyperdrive intends to capitalize on all yield opportunities to create products for our users. This mean tokenizing more HyperCore vaults, enabling them as collateral, creating managed yield and looping strategies.

Everything that pertains to yield will be on Hyperdrive - The Home of Stablecoin Yields.

Hyperdrive is built for maximum utilization — Meaning every dollar on Hyperdrive should earn more, move faster, and create more value than anywhere else. Every crypto wallet will hold stablecoins, and every stablecoin will be earning, borrowing, and compounding through Hyperdrive.

We believe every crypto wallet will hold a stablecoin, and every stablecoin will be earning, borrowing, and compounding through Hyperdrive. It won’t just be a product. Hyperdrive will be the default infrastructure that yield flows through.

Hyperdrive is ready. Are you?

https://x.com/hyperdrivedefi/status/1921958583085957288

Hyperdrive was created with a vision - The stablecoin market will be crypto’s largest and fastest growing vertical.

Though this view may be consensus today, the foundations for Hyperdrive to support this vision begun to be built many years ago. As we prepare to launch, we will outline below why we chose to focus on stablecoin lending, and why on Hyperliquid.

Just 5 years ago in 2020, Ethereum had found its flagship product - DeFi. With just over $600M in TVL at the start of the year, DeFi grew explosively and hit a whopping $15.5B TVL by the end of the year. That’s a growth rate of 2583%.

Yet one vertical stood out to us — stablecoins. People were using it to beat bank account savings rates, conduct remittances, make payments and protect themselves from hyperinflationary currencies. The eventual proliferation of stablecoins was extremely obvious to us.

Today, we have behemoths in USDC, USDT0, USDe, and the total circulating stablecoin supply amounts to >$243 billion.

There was one problem however, DeFi yields were unsustainable and declined in 2022. This led to an outflow of stablecoins from the market as people redeemed them for cash.

So the question we posed to ourselves were — how do we ensure yields are sustainable for our users?

Enter Hyperliquid.

The Hyperliquidity Provider (HLP) is Hyperliquid’s market making vault. Its performance is driven by proprietary strategies set by Hyperliquid, as well as priority access to liquidation orderflow.

This had instantly caught our eye, as HLP derives it yield from sustainable mechanics unlike many ponzi-like sources we have seen in the past. This is why we started building on Hyperliquid.

Tokenized HLP and using it as collateral will be enabled on Hyperdrive once Hyperliquid dependencies are available.

As Hyperliquid grows into the House of Finance, we foresee a myriad of activity taking place on it. More assets through tokenization protocols such as Hyperunit, more stablecoins such as Ethena’s USDe and USDT0, more vaults, payment rails, NFT projects, yield farming opportunities, etc.

Hyperdrive intends to capitalize on all yield opportunities to create products for our users. This mean tokenizing more HyperCore vaults, enabling them as collateral, creating managed yield and looping strategies.

Everything that pertains to yield will be on Hyperdrive - The Home of Stablecoin Yields.

Hyperdrive is built for maximum utilization — Meaning every dollar on Hyperdrive should earn more, move faster, and create more value than anywhere else. Every crypto wallet will hold stablecoins, and every stablecoin will be earning, borrowing, and compounding through Hyperdrive.

We believe every crypto wallet will hold a stablecoin, and every stablecoin will be earning, borrowing, and compounding through Hyperdrive. It won’t just be a product. Hyperdrive will be the default infrastructure that yield flows through.

Hyperdrive is ready. Are you?

https://x.com/hyperdrivedefi/status/1921958583085957288