Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
Every bull market cycle sees the emergence of a dark horse exchange, and Hyperliquid seems to be the dark horse of this bull market.
Although it has not yet been listed on exchanges like Binance and Coinbase, Hyperliquid's fully diluted valuation (FDV) has already reached $27 billion, ranking it among the top 30 in the crypto asset market cap. Its HYPE token has also been a standout performer, with the initial token offering (TGE) setting an initial price of $3.9 per token, and the price peaking at around $35 per token within a month, making it a highly sought-after asset and causing many investors who missed the pump to regret their decision.
But if you missed out on Hyperliquid, there are also Hyperliquid ecosystem projects worth looking into.
Investment Opportunities on Hyperliquid
To understand Hyperliquid, it's necessary to have a basic understanding of what it is.
Hyperliquid is an innovative decentralized trading platform, with the goal of combining the efficiency of a CEX with the transparency of a DEX.
Its dedicated L1 blockchain is designed for a high-performance perpetual contract order book exchange (a general-purpose chain), using the HyperBFT consensus algorithm to achieve low latency and high throughput, with margin and matching engine states fully on-chain to ensure efficient and secure trading. Hyperliquid has also introduced the HIP-1 and HIP-2 token standards. HIP-1 is a native token with built-in trading functionality, allowing users to create fungible tokens directly linked to the on-chain spot order book; HIP-2 is a token standard that embeds liquidity, meaning the liquidity is permanently bonded to the HIP-1 token from the time of issuance, solving the liquidity problem from the start.
In addition, Hyperliquid is compatible with staking and has a staking function, and adheres to a self-funded, community-driven development model, which adds to the platform's appeal.
By maximizing the utility and liquidity of tokens, as well as the EVM compatibility and staking functionality, the platform has further enhanced its attractiveness and competitiveness. Moreover, Hyperliquid's community-driven and self-funded model allows it to focus more on technical innovation and user experience improvement, demonstrating strong development potential and unique value.
Currently, the main investment opportunities on Hyperliquid can be summarized as follows:
1) New asset auctions: Hyperliquid lists new assets through Ticket seat auctions. There are many Tickets, but the assets that can be hyped are very limited, and as the market's enthusiasm for HYPE grows, finding the next hype target has become the goal of investors.
2) Potential projects: There are several potential projects in the Hyperliquid ecosystem worth paying attention to, which is what we will focus on next.
3) NFT opportunities: For example, the NFT project Lilquid launched by Hyperliquid has attracted the attention of many investors.
4) Liquidity mining: Liquidity mining is seen as an important opportunity on Hyperliquid and its ecosystem.
5) Meme coins: Meme coins have been a major theme in this bull market cycle, and the Meme coins on Hyperliquid, such as PURR, are also an opportunity.
6) Old asset shells: Similar to backdoor listings, this is currently just a possibility being discussed by market participants.
Which Projects are Worth Participating in?
Next, we will focus on introducing the projects on Hyperliquid that are worth participating in, excluding some "old wine in new bottles".
- BTC Staking Protocol: Solv Protocol
This is a very noteworthy project.
Solv is a decentralized Bitcoin staking protocol with good reputation. The project aims to unlock the full potential of Bitcoin assets through a liquidity consensus infrastructure. By addressing the fragmentation, yield opportunities, and custody solutions of BTC assets, Solv provides a gateway to BTCFi for Bitcoin holders. With the support of its Staking abstraction layer, Solv introduces a unified framework that enables seamless interoperability across over 15 platforms.
According to official disclosures, Solv has a 25,000 BTC reserve, making it the largest decentralized Bitcoin custodian to date.
Surprisingly, Solv recently announced the highly anticipated TGE and native token $SOLV. Solv has chosen Hyperliquid as the listing destination for $SOLV, rather than a CEX. A significant move, given that a large portion of the tokens listed on Hyperliquid are Memecoins.
- Native Decentralized Lending Protocol: HyperLend
HyperLend is the native lending protocol on Hyperliquid, and the first decentralized lending platform on Hyperliquid's EVM, without any official backing.
The project has automated the lending process through smart contracts, allowing users to borrow and lend assets without the need to trust a third party. Its operating mechanism is based on an over-collateralized model, where borrowers must provide collateral exceeding the loan amount to ensure the safety of the loan. The platform also dynamically adjusts interest rates based on market supply and demand.
According to the website data, the product already has nearly 110,000 users. In the future, HyperLend plans to expand its business to other areas such as options and spot margin trading on the Hyperliquid DEX.
- Native Domain Project: Hyperliquid Names
You can think of this project as similar to the Ethereum Name Service (ENS). Hyperliquid Names is a protocol on the Hyperliquid EVM blockchain that allows users to publish, exchange, and manage tokenized .hl names, bridging between human-readable names and crypto addresses.
Hyperliquid Names is Hyperliquid's native domain project, and is about to launch domain auctions on Hyperliquid, currently preparing for the domain auction whitelist application.
Hyperliquid Names has already been launched on the testnet. Its gameplay can be referenced from the Ethereum Name Service, and names like Jeff and xulian are expected to become expensive domains.
- Stablecoin Protocol: Felix
Felix is the stablecoin protocol in the Hyperliquid ecosystem, maintaining the stable value of the stablecoin by pegging it to specific assets or a basket of assets, such as fiat or other stable crypto assets. Its algorithmic and smart contract mechanisms can automatically adjust the stablecoin supply to respond to price fluctuations. For example, when the stablecoin price is higher than the peg value, the protocol will increase the stablecoin supply to bring the price back down; and vice versa, when the price is lower than the peg value, the supply will be reduced to push the price up.
Currently, the stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income in the Felix vault.
The protocol is backed by the decentralized lending protocol Liquity, and according to the website data, the current pool has nearly $2 billion in assets.
- Liquid Staking Protocol: Thunderhead
Thunderhead is a liquid staking token issuance platform that helps emerging blockchain ecosystems by providing so-called ecosystem-as-a-service. It has already provided liquid staking services for multiple blockchain protocols and has been selected by the Hyperliquid team for collaboration.
Users can stake their crypto assets on the platform to earn staking rewards, while maintaining the liquidity of their assets. The way it works is that when users stake their assets, the platform will issue liquid staking tokens representing the staked assets, and these tokens can be traded, borrowed, or used to provide liquidity on other DeFi platforms, realizing a "secondary utilization" of the assets. For example, the liquid staking tokens obtained by staking ETH can be used to participate in liquidity mining on other supported platforms to earn additional rewards.
- Liquid Staking Protocol: Kinetiq
This project is the premier liquid staking protocol on Hyperliquid, aiming to establish kHYPE as the pioneering staking pool on Hyperliquid, using StakeHub as its operating system.
StakeHub is a self-sovereign validator scoring and reward distribution protocol, designed to be fully meritocratic from the ground up. This means there will be no backroom deals, pre-selections, or any bias towards validators who receive $HYPE delegations from Kinetiq.
Validators must continuously "earn their keep", and if they meet or exceed StakeHub's standards, they will receive $HYPE delegation rewards from Kinetiq. If not, their stake will be re-delegated.
This is a new project, with StakeHub v0.1 just launched. According to its dashboard data, there are currently about 95 million HYPE staked in the pool.
- The firstHyperLiquidNFT:Liquina.hl
Liquina.hl is a project that combines AI, NFT and blockchain technology, and has mainly launched an AI electronic girlfriend. The core of the project is that users can earn points through interaction with the electronic girlfriend, and users holding $LQNA tokens can also obtain more rewards in this way. In addition, the electronic girlfriend has the ability to learn trading and will trade on the Hyperliquid platform, and airdrop according to the earnings.
The upcoming LQnians of Liquina.hl will include 3000 NFTs, of which 2001 will be distributed through airdrops and 999 will be sold through auctions.
- Native DEX:HyperSwap
This project has just started, and is the first native DEX on the Hyperliquid EVM, which has already been launched on the testnet. It has cooperated with Thunderhead.
- Stablecoin:Keiko Finance
This project is a permissionless lending protocol with dynamic interest rates and liquidation ratios, deployed on Hyperliquid. Users can deposit assets in the Hyperliquid ecosystem and borrow the native stablecoin KEI of the protocol, while adjusting the desired risk level and enjoying predictable interest rates.
The Keiko testnet has already gone live on the Hyperliquid EVM, which is the last step before the protocol's mainnet deployment. Keiko is expected to become the pioneer native stablecoin in the Hyperliquid ecosystem.
- GameFi:Vegas GamebleFi
Vegas GamebleFi is the first GamebleFi on HyperLiquid that combines utility and gameplay using a fair proof system, and launched $VEGAS in July 2024, with the goal of bringing GambleFi functionality to HyperLiquid. The game is still under development.
- Trading Bot: PVP Trade
PVP Trade is a Telegram-based trading bot that aims to provide users with the convenience of trading contracts and spot on the Hyperliquid exchange. Users can view and track each other's positions in the Telegram group, realizing real-time copy trading. This social trading method allows users not only to trade independently, but also to interact with group members and share trading strategies.
This project is currently the only platform that allows users to short ERC-20 tokens, providing users with more trading strategy options. The short mechanism is relatively rare in the cryptocurrency market, and the trading fees of PVP Trade are extremely low, almost negligible.
This project currently has airdrop expectations, as users can earn points through trading, and many users are actively participating because these points will be used for the upcoming token airdrop. According to discussions on X, many whales are optimistic about it.
Conclusion
Hyperliquid is a dark horse that has emerged this year, with many new applications being built rapidly, and almost a new project being added to it every day. To learn more about Hyperliquid, you can visit the Hyperliquid ecosystem page on RootData: https://www.rootdata.com/zh/EcosystemMap/list/335?n=Hyperliquid
For a more comprehensive view, you can check the official ecosystem database: https://www.hypurr.co/ecosystem-projects.
