Overview

Foundational Yield Layer of the Hyperliquid Ecosystem

HyperBonds: The Foundational Yield Layer of HYPERMAX

HyperBonds are the core yield-generating products of HYPERMAX, designed to deliver delta-neutral returns by capturing perpetual funding rates on Hyperliquid. They form the base layer of stable yield generation in the ecosystem.

This is made possible by Hyperliquid’s unique architecture: a seamless link between HyperCore and HyperEVM through precompiles, combined with deep onchain liquidity. HyperBonds run entirely on SmartFund infrastructure, ensuring trustless execution, transparent management, and high efficiency.

While HyperBonds aim for consistent returns, they are not risk-free. Yields depend on market funding rates—generally higher than lending yields, but subject to change. Rare periods of negative funding may lead to losses.

What HyperBonds Enable

HyperBonds redefine capital productivity in DeFi by offering users a stable, liquid, and composable yield layer:

• Delta-Neutral Yield Earn funding rate spreads using long spot + short perp positions—automated to minimize market exposure.

• Seamless Liquidity Tradable anytime on HYPERMAX’s Concentrated Liquidity AMM (CLMM), without waiting for redemptions.

• Capital Efficiency via Rehypothecation Use HyperBonds as collateral in the HYPERMAX Lending Market to borrow xUSD or other assets—unlocking liquidity for:

  • New trades

  • External DeFi participation

  • Leverage without forfeiting base yield

• Trustless Automation SmartFund contracts manage all positions, risk parameters, and rebalancing with full transparency—no middlemen or counterparty risk.

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How HyperBonds Work

• Structure: Long spot + short perp positions on Hyperliquid

• Execution: SmartFund handles automation and risk control

• Liquidity: Tradable anytime via CLMM

• Collateral Use: Borrow against HyperBonds to maximize capital efficiency

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Initial HyperBond Products

• HFY (HYPE Funding Yield): Delta-neutral strategy using HYPE spot and perp markets

• BFY (BTC Funding Yield): Same mechanism applied to uBTC and BTC perp markets

These products provide onchain-native yield and serve as collateral building blocks for broader DeFi participation.

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The Future of HyperBonds

HyperBonds will expand to cover more assets with favorable funding dynamics. As integrations with Lending, xUSD, and CLMM deepen, HyperBonds will remain a central primitive for yield generation and capital efficiency in the Hyperliquid ecosystem.

Crucially, other builders can integrate HyperBonds at no cost to power their own products:

• Stablecoins can allocate a portion of reserves into HFY or BFY for enhanced yield.

• Treasury managers in DAOs or DeFi protocols can use HyperBonds to diversify idle assets while maintaining composability.

• Structured product creators can use HyperBonds as a base layer to build more complex, yield-enhancing strategies.

Note: Minting and redemption are performed only by permissioned liquidity providers. All users interact via CLMM for continuous liquidity and flexibility.