Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
Every bull market cycle brings forth a dark horse exchange, and Hyperliquid seems to be this cycle's dark horse.
Although it has not yet listed on Binance, Coinbase, and other CEXs, Hyperliquid's fully diluted valuation (FDV) has currently reached $27 billion, entering the top 30 of cryptocurrency market capitalization. Its HYPE token performance is also remarkable, with the initial price set at $3.9 per token during the first token issuance TGE, and within a month, the price peaked close to $35 per token, making it a sought-after asset, leaving many investors regretting not participating.
But if you missed Hyperliquid, there are still Hyperliquid ecosystem projects worth checking out.
Investment Opportunities on Hyperliquid
To understand Hyperliquid, it's necessary to have a simple understanding of what Hyperliquid is.
Hyperliquid is an innovative decentralized trading platform, its goal can be understood as: the efficiency of CEX + the transparency of DEX.
Its dedicated L1 blockchain is built for high-performance perpetual contract order book exchanges (universal chains), utilizing the HyperBFT consensus algorithm to achieve low latency and high throughput, with the margin and matching engine state fully on-chain to ensure trading efficiency and security. At the same time, Hyperliquid has launched the HIP-1 and HIP-2 token standards. Among them, HIP-1 is the native token with built-in trading functionality, allowing users to create fungible tokens directly linked to on-chain spot order books; HIP-2 embeds liquidity at issuance, meaning it permanently binds liquidity to HIP-1 tokens from the outset to solve liquidity issues.
In addition, Hyperliquid is compatible with staking, has staking functionality, and insists on a self-funded, community-driven development model, adding appeal to its projects.
Maximized the utility and liquidity of the tokens, EVM compatibility and staking functionality further enhance the platform's appeal and competitiveness. Additionally, Hyperliquid's community-driven and self-funded model allows it to focus more on technological innovation and improving user experience, showcasing strong development potential and unique value.
Currently, there are primarily the following approaches to seeking opportunities on Hyperliquid:
1) New Asset Auctions: Hyperliquid lists new assets through auctioning Ticket seats. There are many Tickets, but the assets that can be hyped are very limited. With the market's enthusiasm for HYPE, finding the next hype target has become the goal for investors.
2) Potential Projects: There are several potential projects worth paying attention to in the Hyperliquid ecosystem, which we will focus on next.
3) NFT Opportunities: For instance, NFT projects launched by Hyperliquid, such as Lilquid, have attracted considerable attention from investors.
4) Liquidity Mining: In Hyperliquid and its ecosystem, liquidity mining is seen as an important opportunity.
5) Meme Coins: In this bull market cycle, Meme as a main theme exists, and Meme coins on Hyperliquid are also an opportunity, such as PURR.
6) Old Asset Shell: Similar to backdoor listings, this is currently just a possibility discussed among market participants.
Which projects are worth participating in?
Next, we will focus on which projects on Hyperliquid are worth participating in, excluding some 'new wine in old bottles' projects.
BTC Staking Protocol: Solv Protocol
A project that is very worth paying attention to.
Solv is a decentralized Bitcoin staking protocol with good visibility. The project aims to unleash the full potential of Bitcoin assets through liquidity consensus infrastructure. By addressing fragmentation, yield opportunities, and custody solutions for BTC assets, Solv provides a gateway to BTCFi for Bitcoin holders. Supported by its Staking abstraction layer, Solv introduces a unified framework that enables seamless interoperability across more than 15 platforms.
According to official disclosures, Solv has a reserve of 25,000 BTC, making it the largest decentralized Bitcoin reserve provider at present.
Surprisingly, Solv recently announced the highly anticipated TGE and native token $SOLV for their project. Solv does not consider CEX as the preferred destination for $SOLV listing, instead opting for Hyperliquid.
Currently, a large portion of the tokens listed on Hyperliquid are Memecoins, and the listing of $SOLV is worth noting; it can be said to be a significant move.
Native Decentralized Lending Protocol: HyperLend
HyperLend is the native lending protocol on Hyperliquid and is the first decentralized lending platform on Hyperliquid's EVM without any official background.
This project automates the lending process through smart contracts, allowing users to borrow and lend assets without trusting a third party. Its operational mechanism is based on an over-collateralization model, where borrowers must provide collateral exceeding the loan amount to ensure loan security. Meanwhile, the platform dynamically adjusts interest rates based on market supply and demand.
According to official data, the product has nearly 110,000 users. In the future, HyperLend plans to expand its business into options and spot margin trading on Hyperliquid DEX and other fields.
Native Domain Name Project: Hyperliquid Names
You can relate this project to Ethereum domains like ENS. Hyperliquid Names is a protocol on the Hyperliquid EVM blockchain that allows users to publish, exchange, and manage tokenized .hl names, serving as a bridge between readable names and crypto addresses.
Hyperliquid Names is Hyperliquid's native domain name project, about to launch domain auctions on Hyperliquid, currently preparing for domain auction—whitelist applications.
Hyperliquid Names has now launched on the testnet. Its gameplay can refer to Ethereum domain gameplay, with expectations that names like Jeff, xulian will become expensive domains.
Stablecoin Protocol: Felix
Felix is a stablecoin protocol within the Hyperliquid ecosystem that maintains the stable value of the stablecoin by pegging it to specific assets or a basket of assets, such as fiat currencies or other stable cryptocurrencies. Its algorithm and smart contract mechanism can automatically adjust the supply of the stablecoin according to market conditions to cope with price fluctuations. For example, when the stablecoin price is above the pegged value, the protocol increases the supply of the stablecoin to bring the price down; conversely, when the price is below the pegged value, it reduces the supply to boost the price.
Currently, this stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income using the Felix vault.
The supporter behind the protocol is the decentralized lending protocol Liquity. According to official disclosures, the pool currently 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 what is called ecosystem as a service. It has provided liquid staking services for multiple blockchain protocols and is selected for cooperation by the Hyperliquid team.
Users can stake their crypto assets on the platform to earn corresponding staking rewards while maintaining the liquidity of their assets. The mechanism works like this: after users stake assets, the platform issues liquid staking tokens representing the staked assets, which can be traded, lent, or provide liquidity on other DeFi platforms, achieving 'secondary use' of the assets. For instance, the liquid staking tokens obtained after staking ETH can participate in liquidity mining on other platforms that support that token, earning additional rewards.
Liquid Staking Protocol: Kinetiq
This project is the premier liquid staking protocol on Hyperliquid, aiming to use StakeHub as its operating system, establishing kHYPE as the pioneer staking pool on Hyperliquid.
StakeHub is a self-sovereign validator rating and staking distribution protocol, designed to fully adopt elite management from the ground up. This means that there will be no behind-the-scenes deals, pre-selection, or bias against validators obtaining $HYPE from Kinetiq.
Validators must continuously 'earn income'; if they meet or exceed StakeHub's standards, they will receive $HYPE delegation rewards from Kinetiq. If not, they will re-delegate their stakes.
This is a new project, StakeHub v0.1 has just launched. According to its dashboard data, there are currently about 95 million HYPE in the staking pool.
The first NFT on HyperLiquid: Liquina.hl
Liquina.hl is a project that combines AI, NFT, and blockchain technology, primarily launching an AI electronic chat girlfriend. The core of the project is that through interaction with the electronic girlfriend, users can earn points, and holders of $LQNA tokens can also gain more rewards this way. Additionally, the electronic girlfriend has the ability to learn trading, will trade on the Hyperliquid platform, and will airdrop points based on the earnings.
The upcoming LQnians from Liquina.hl will include 3000 NFTs, with 2001 being distributed through airdrops and 999 being sold through auctions.
Native DEX: HyperSwap
The project has just started launching, being the first native DEX on Hyperliquid EVM, now already live on the testnet. It has partnered 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 from the Hyperliquid ecosystem and borrow the protocol's native stablecoin KEI, while adjusting the desired risk level and enjoying predictable interest rates.
Currently, the Keiko testnet has been launched on Hyperliquid EVM, marking the final 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 gaming using a fairness proof system, set to launch $VEGAS in July 2024, aiming to bring to HyperLiquid.
GambleFi features. The game is still in development.
Trading Bot: PVP Trade
PVP Trade is a Telegram-based trading bot designed to provide users with the convenience of contract and spot trading on the Hyperliquid exchange. Users can view and track each other's positions in the Telegram group, achieving real-time following. This socialized trading method allows users to trade independently while interacting with group members to 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 shorting mechanism is relatively rare in the cryptocurrency market, and PVP Trade's trading fees are extremely low, almost negligible.
This project currently has airdrop expectations, as users can earn points through trading, and many users are actively participating since these points will be used for the upcoming token airdrop. According to discussions among users on X, many whales are optimistic about it.
Conclusion
Hyperliquid has emerged as a dark horse this year, with many new applications being vigorously built, with new projects being added almost daily. To know more about Hyperliquid, you can visit RootData's Hyperliquid ecosystem page: https://www.rootdata.com/zh/EcosystemMap/list/335?n=Hyperliquid
For a more comprehensive view, check the official ecosystem database: https://www.hypurr.co/ecosystem-projects.