Playbook

Objectives and Vision of the HYPE Treasury Strategy

The HYPE treasury strategy is not merely a financial mechanism; it is the cornerstone of HYPERMAX's ambitious vision to reshape onchain asset management.

1. Overaching Vision: The Fundamental Asset Management Layer

• HYPERMAX believes Hyperliquid is the future of finance. Our primary aim is to become the fundamental asset management layer of the Hyperliquid ecosystem.

• We are building the first vertically-integrated Onchain Asset Management Protocol (OAMP) on HyperEVM, integrating asset management with permissionless DeFi primitives. This framework ensures secure and transparent investing, empowering both asset managers and investors in decentralized capital allocation.

2. Key Performance Indicators and Growth Targets

• Primary KPI is HYPE/HMX Ratio mirroring MicroStrategy's success in increasing BTC/share, HYPERMAX's primary KPI is to achieve a 25% annual improvement in the HYPE/HMX ratio through strategic treasury accumulation. This metric is transparently measured via onchain accounting.

• Secondary KPIs are metrics focused on ecosystem growth and sustainability:

  • Total Value Locked (TVL) across all HYPERMAX products.

  • Growth in active users and user retention.

  • Overall fee generation and protocol profitability.

  • Increasing market share within key product categories.

  • Projected AUM growth from $10 million in Year 1 to $500 million in Year 3.

3. Democratizing Asset Management

• A core objective is to democratize access to superior and institutional-grade asset management.

• The HYPE treasury strategy provides multiple tradable products (HMX and CDTs) to HYPERMAX ecosystem, with HMX holders capturing fees via Add-Ons.

• SmartFunds will evolve to permissionless creation, expanding investment possibilities and making sophisticated strategies accessible to all market participants.

5. Robust Risk Management and Security

Security and risk mitigation are paramount. HYPERMAX employs comprehensive strategies:

• Treasury Ratios: Governance-set hard caps on debt-to-asset (≤ 33%) and debt-to-equity (≤ 50%) ratios.

• Smart Contract Security: Adherence to battle-tested ERC-4626 standards, comprehensive testing, audits, and an bug bounty program.

• Regulatory Compliance: Designed with a CDT bearer asset and Authorized Participant (AP) KYC to comply with regulations.

6. Competitive Advantages

HYPERMAX enjoys significant competitive advantages:

• First-Mover Status: It is the first to offer onchain convertible debt structures for crypto treasury accumulation, creating a "blue ocean opportunity".

• Superior Economics: HYPE's deflationary mechanics provide better treasury asset characteristics than Bitcoin or Ethereum.

• Comprehensive Integration: Vertical integration of asset management, market infrastructure (CLMM, Lending, xUSD), and governance creates sustainable competitive moats while enabling HMX to capture value at critical junctures.

In summary, the HYPE treasury strategy positions HYPERMAX as a category-defining opportunity in onchain asset management, combining validated financial models with superior tokenomics and innovative technology to build the infrastructure layer for the next generation of decentralized finance.