Article source: ChainCatcher
Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
Every bull market always sees the emergence of a dark horse exchange, and Hyperliquid seems to be the dark horse of this bull market.
Although it has not yet been 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. The performance of its HYPE token is particularly eye-catching, with the initial price set at $3.9 during the Token Generation Event (TGE), peaking at nearly $35 within a month, making it a highly sought-after asset, causing many investors who missed the opportunity to regret.
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 brief understanding of what Hyperliquid is.
Hyperliquid is an innovative decentralized trading platform, whose 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 chain), using the HyperBFT consensus algorithm to achieve low latency and high throughput, ensuring that margin and matching engine states are fully on-chain for efficient and secure trading. At the same time, Hyperliquid has launched the HIP-1 and HIP-2 token standards. HIP-1 is a native token with built-in trading functionality, allowing users to create replaceable tokens that are directly linked to on-chain spot order books; HIP-2 is designed to embed liquidity at issuance, meaning liquidity is permanently bound to the HIP-1 token, solving liquidity issues from the outset.
Additionally, Hyperliquid supports staking, has staking functions, and adheres to a self-funded, community-driven development model, adding attractiveness to its projects.
Maximized the utility and liquidity of tokens, while EVM compatibility and staking functions further enhance the platform's attractiveness and competitiveness. In addition, 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 several approaches to seeking opportunities on Hyperliquid:
1) New asset auctions: Hyperliquid introduces new assets through auctioning Ticket seats. There are many tickets, but the tradable assets are quite limited. As market enthusiasm for HYPE grows, finding the next speculative target has become the goal for investors.
2) Potential projects: In the Hyperliquid ecosystem, there are several potential projects worth paying attention to, which we will focus on next.
3) NFT opportunities: For example, NFT projects launched by Hyperliquid, such as Lilquid, have attracted the attention of many 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, memes exist as a main line, and Meme coins on Hyperliquid are also an opportunity, such as PURR.
6) Old asset shell: similar to backdoor listing, currently just a possibility discussed among market participants.
Which projects are worth participating in?
Next, we will focus on what projects on Hyperliquid are worth participating in, excluding some 'old wine in new bottles' projects.
BTC staking protocol: Solv Protocol
A project that is very worthy of attention.
Solv is a decentralized Bitcoin staking protocol with good visibility. The project aims to unlock the full potential of Bitcoin assets through liquidity consensus infrastructure. By addressing the fragmentation of BTC assets, yield opportunities, and custody solutions, Solv provides Bitcoin holders with a gateway to BTCFi. Supported by its Staking abstraction layer, Solv introduces a unified framework for 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 currently.
Surprisingly, Solv recently announced their highly anticipated TGE and native token $SOLV. Solv does not consider CEX as the preferred destination for listing $SOLV but has chosen Hyperliquid.
Currently, a large portion of the listed tokens on Hyperliquid are Memecoins. The listing of $SOLV is worth paying attention to, as it is a significant move.
Native decentralized lending protocol: HyperLend
HyperLend is the native lending protocol on Hyperliquid and 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 operating mechanism is based on an over-collateralization model, where borrowers must provide collateral exceeding the loan amount to ensure loan security. The platform dynamically adjusts interest rates based on market supply and demand.
According to data from the official website, the product already has nearly 110,000 users. In the future, HyperLend plans to expand its business into options and spot margin trading on the Hyperliquid DEX.
Native domain name project: Hyperliquid Names
You can relate this project to Ethereum domain names 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, which is about to launch domain name auctions on Hyperliquid, currently preparing for the domain name auction - whitelist application.
Hyperliquid Names has currently launched on the testnet. Its gameplay can refer to Ethereum domain name practices, and it is expected that domains like Jeff and xulian will become expensive.
Stablecoin protocol: Felix
Felix is the stablecoin protocol in the Hyperliquid ecosystem, maintaining the stable value of the stablecoin by anchoring to specific assets or a basket of assets, such as fiat currencies or other stable cryptocurrencies. The algorithm and smart contract mechanism it employs can automatically adjust the supply of stablecoins based on market conditions to respond to price fluctuations. For example, when the price of the stablecoin is above the pegged value, the protocol will increase the supply of stablecoins to bring the price down; conversely, when the price is below the pegged value, it will decrease the supply to raise the price.
Currently, the stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income using the Felix vault.
The supporters behind this protocol are the decentralized lending protocol Liquity. According to data disclosed on their website, the pool currently holds 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 currently provides liquid staking services for multiple blockchain protocols and has been selected and collaborated with 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 way it works is that when users stake assets, the platform issues liquid staking tokens representing the staked assets, which can be traded, lent, or provided with liquidity on other DeFi platforms, achieving 'secondary utilization' of assets. For example, the liquid staking tokens obtained after staking ETH can participate in liquidity mining on other platforms that support those tokens to earn additional rewards.
Liquid Staking Protocol: Kinetiq
This project is the leading liquid staking protocol on Hyperliquid, aiming to utilize StakeHub as its operating system and establish kHYPE as the pioneering staking pool on Hyperliquid.
StakeHub is a self-verifying validator scoring and equity distribution protocol that aims to fully adopt elite management from the ground up. This means there will be no behind-the-scenes trading, pre-selection, or bias against validators receiving $HYPE from Kinetiq.
Validators must continuously 'earn income'; if they meet or exceed the standards of StakeHub, they will receive delegated rewards of $HYPE from Kinetiq. If not, they will re-delegate their shares.
This is a new project, StakeHub v0.1 has just gone live. 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, mainly launching an AI electronic companion girlfriend. The core of the project is that through interaction with the electronic girlfriend, users can earn points, and users holding the $LQNA token can also earn more rewards through this method. In addition, the electronic girlfriend has the ability to learn trading and will trade on the Hyperliquid platform, airdropping points based on the profits earned.
The upcoming LQnians from Liquina.hl will include 3,000 NFTs, of which 2,001 will be distributed via airdrop and 999 will be sold through auction.
Native DEX: HyperSwap
This project has just begun to launch; it is the first native DEX on Hyperliquid EVM and has already gone live on the testnet. It has collaborated 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 their desired risk level and enjoying predictable interest rates.
Currently, the Keiko testnet has gone live on the Hyperliquid EVM, marking the final step before the mainnet deployment of the protocol. Keiko is expected to become the pioneering native stablecoin in the Hyperliquid ecosystem.
GameFi: Vegas GamebleFi
Vegas GamebleFi is the first GamebleFi on HyperLiquid to combine utility and gameplay using a fairness proof system, launching $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 convenience for contract and spot trading on the Hyperliquid exchange. Users can view and track each other's positions in Telegram groups for real-time follow-ups. This social trading method allows users to trade independently while interacting with group members and sharing 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. Since users can earn points through trading, many are actively participating because these points will be used for the upcoming token airdrop. According to discussions on X, many whales are optimistic about it.
Conclusion
Hyperliquid is the dark horse that emerged this year, with many new applications being built vigorously, and almost daily new projects are added. To learn 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.