Hyperliquid, as many of you might know, is one of the breakout decentralised applications (dApps) of this cycle. Hyperliquid did many things right, from having quality founders, to prioritising early adopters, to doing huge buy backs and burns, and more. It almost seems like Hyperliquid can do no wrong.

Hyperliquid, launched in June 2023, started off as a perpetuals decentralised exchange (Perp DEX). Since then, it has amassed a total trading volume of over US$1.8 trillion. Currently, the trading activity on Hyperliquid represents around 4.8% of the aggregated trading volume from centralised exchanges (CEXs).

Hyperliquid’s PerpDEX success spurred the team to launch their own EVM compatible L1, HyperEVM. HyperEVM will host various dApps to provide services that complement Hyperliquid’s PerpDEX, as well as to build out the Hyperliquid ecosystem. Although the chain is still in its infancy, let us take a look at some interesting protocols there.

Money Markets
There are quite a number of money markets on HyperEVM, suggesting high demand for lending/ borrowing services. 

Leading the pack is Hyperlend, who has the highest TVL (US$340M at the time of writing) in the vertical as well as across HyperEVM. Hyperlend provides users with clean and simple lending and borrowing services, and other additional yield strategies to boot.

Some interesting money markets to pay attention to include Felix and Hyperdrive. Felix is a Collateralised Dept Position stablecoin protocol, featuring $feUSD. Users can deposit collateral to borrow $feUSD. On the other hand, Hyperdrive is a money market that is looking to tokenise Hyperliquidity Provider (HLP), Hyperliquid’s shared liquidity vault which is used to execute market-making and liquidation strategies. This would allow users to take a leveraged HLP position via looping, or borrow against HLP by using it as collateral, unlocking more interesting strategies as a whole.

HyperSwap
Every chain needs a quality DEX, and HyperSwap might just be what HyperEVM needs. It is currently the leading DEX on the chain, adopting Uniswap V2’s AMM as well as Uniswap V3’s concentrated liquidity pools.

Unit
Unit is a key piece of infrastructure for HyperEVM, allowing users to send major spot assets such as $BTC, $ETH, $SOL and $FARTCOIN from their native chains to Hyperliquid, improving liquidity and connectivity across chains.

Consumer dApps
Every chain needs a few good consumer dApps to appeal to the average user.

LiquidLaunch, a pumpfun-esque token launchpad is a good example.

Another interesting dApp is Fan App, who is building a social trading platform where users can copytrade, and get real-time data of other users’ trades.

Structured Products
Hyperbeat, Upshift and Liminal are products that aim to generate yield off user’s deposits by leveraging automated DeFi strategies, hedging strategies etc. For a chain that is built around a PerpDEX, structured products may have a good product market fit, as PerpDEX users may be drawn to these products that help to generate yield off users’ idle assets, maximising returns. 

Concluding thoughts
It is early days for HyperEVM. Many dApps are still in their beta launches and a work-in-progress. Many of them also have ongoing points programmes, which makes this a great opportunity to explore the ecosystem and support these dApps as well.

Hyperliquid.

*Disclosure: The information provided on this newsletter is for general informational purposes only and does not constitute professional nor investment advice.