All Aboard the HYPE Train; Initiating Coverage of HYPD and PURR at OW Core thesis - Hyperliquid is the leading perp DEX with strong performance and growing volumes/fees; in YTD 2025 it generated about $874m in fees - Assistance Fund uses ~99% of protocol fees to repurchase HYPE, more volume → more fees → more buybacks and potentially lower circulating supply - They also argue competitive fears are overblown: competitor volume can be inflated by points/airdrop incentive behavior What each company does - HYPD: owns HYPE and monetizes via validator, staking and HIP-3 (trades around 1.14x “fully adjusted” mNAV) - PURR: bought 12.6m HYPE using proceeds from a $1.65bn PIPE; “institutional” way to access HYPE Key risks - Both are leveraged bets on HYPE - HYPD execution risk: thesis depends on the ability to raise capital to buy more HYPE; if it can’t (or mNAV falls), the strategy breaks - Centralization / governance risk on Hyperliquid: the March 2025 JELLY incident ended with validators voting to delist and force settlement at a pre-manipulation price—good outcome for users, but highlights “decentralization” tradeoffs sso.bluematrix.com/idp/authn?c...