Convertible Debt Tokens
// Convertible Bonds onchain
Convertible Debt Tokens (CDTs) are HYPERMAX’s onchain adaptation of convertible bonds, offering a safer, structured way to gain exposure to HYPE.
Purpose
Downside Protection — Designed for conservative investors who want HYPE exposure with limited downside.
Optionality — Like convertible bonds, CDTs can convert into HMX under predefined terms, offering upside if the protocol grows.
Treasury Financing — CDTs provide HYPERMAX with a flexible way to raise capital for HYPE accumulation without diluting governance power prematurely.
Key Features
Structured Terms — Each CDT issuance can vary (conversion premium, coupon, maturity, collateralization).
Downside Protection — Principal safeguarded by protocol treasury assets (HYPE base).
Upside Participation — Conversion option into HMX if the protocol and HYPE/HMX ratio perform strongly.
Autonomous Enforcement — Conversion or redemption of CDTs is fully autonomous and pre-set in smart contracts, removing counterparty risk and ensuring terms cannot be altered after issuance.
Example Terms (Illustrative)
Conversion premium: 25–35%
Maturity: 12–18 months
Coupon: 0–5%
Backed by: HYPE held in protocol treasury
Role in HYPERMAX
CDTs complete the capital structure alongside HMX:
HMX — High-volatility levered beta instrument for risk-seeking investors.
CDT — Structured, conservative product for yield-oriented investors with protection.
In addition to financing the treasury, CDT spot listings generate deployer fees on Hyperliquid, creating a recurring revenue stream that strengthens protocol economics.
Together, they allow HYPERMAX to serve both degen and conservative investor segments, while funding its treasury growth in a sustainable, capital-efficient way.
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