xHLP
xHLP: Tokenized HyperLiquidity Provider Vault
Overview
xHLP is a tokenized representation of the HyperLiquidity Provider (HLP) vault—a democratized market-making strategy with a track record of stable trading profits. Tokenizing HLP allows xHLP to offer instant liquidity, onchain composability, and access to rehypothecation opportunities, enhancing capital efficiency and yield potential.
Key Features
Exposure: Access a market making strategy managed by Hyperliquid team, historically generating consistent returns.
Instant Liquidity: Trade xHLP tokens at any time, bypassing HLP’s native 4-day lock-up period.
Composability: Use xHLP across DeFi protocols as collateral or within other SmartFunds.
Onchain Transparency: All vault performance and asset positions are verifiable onchain.
How It Works
Deposit & Tokenization
Deposit USDC into the xHLP SmartFund.
Receive xHLP tokens representing proportional ownership in the vault.
Yield Generation
Strategy: Capital is allocated to HLP’s automated market-making operations.
Compounding: Profits are reinvested, increasing xHLP’s value over time.
Liquidity & Redemption
Trade: Sell xHLP tokens on HYPERMAX’s CLMM for instant liquidity.
Redeem: Withdraw USDC directly from the xHLP SmartFund.
DeFi Utility
Collateral: Use xHLP in lending markets to borrow USDC or other assets.
Yield Stacking: Provide liquidity with xHLP in pools for additional rewards.
Risk Considerations
Market & Impermanent Loss Risk: Returns depend on trading volume and market volatility.
Smart Contract Risk: The SmartFund is audited, but risks from bugs or exploits remain.
Vault Drawdowns: HLP performance may temporarily decline during adverse market conditions.
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