Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
Every bull market cycle sees a dark horse exchange emerge, and Hyperliquid seems to be the dark horse of this bull market.
Although it has not yet been listed on exchanges like Binance and Coinbase, Hyperliquid's fully diluted valuation (FDV) has reached $27 billion, entering the top 30 of crypto asset market caps. The performance of its HYPE token is particularly noteworthy, with the initial token issuance TGE setting the starting price at $3.9 each, and within a month, the price peaked near $35 each, making it a sought-after asset, leaving many investors regretting their missed opportunities.
But if you miss Hyperliquid, there are Hyperliquid ecosystem projects; it's worth checking out which projects on Hyperliquid are worth participating in.
Investment opportunities on Hyperliquid
To understand Hyperliquid, it is necessary to have a basic 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 (general chain), using the HyperBFT consensus algorithm to achieve low latency and high throughput, with margin and matching engine states fully on-chain to ensure trading efficiency and security. At the same time, Hyperliquid has launched HIP-1 and HIP-2 token standards. HIP-1 is a 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 liquidity is permanently bound to HIP-1 tokens, solving liquidity issues from the start.
In addition, Hyperliquid is compatible with staking, has staking capabilities, and adheres to a self-funding, community-driven development model, adding appeal to its projects.
Maximized the utility and liquidity of the token, while EVM compatibility and staking features further enhanced the platform's attractiveness and competitiveness. In addition, Hyperliquid's community-driven and self-funding 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 finding opportunities on Hyperliquid:
1) New Asset Auctions: Hyperliquid lists new assets through auctioning Ticket seats. There are many Tickets, but assets that can be hyped are very limited. With the market's enthusiasm for HYPE, finding the next hyped asset has become the goal for investors.
2) Potential Projects: Within the Hyperliquid ecosystem, several potential projects are 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 considerable attention from investors.
4) Liquidity Mining: In Hyperliquid and its ecosystem, liquidity mining is seen as an important opportunity.
5) Meme Coins: During this bull market cycle, Meme has been a mainstay, and Meme coins on Hyperliquid also present opportunities, such as PURR.
6) Old Asset Shell: Similar to a backdoor listing, it is currently just a possibility being discussed by market participants.
Which projects are worth participating in?
Next, we will focus on which projects on Hyperliquid are worth participating in, excluding some 'old wine in new bottles' projects.
BTC Staking Protocol: Solv Protocol
A project worthy of attention.
Solv is a decentralized Bitcoin staking protocol with good recognition. 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 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 currently.
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 listing $SOLV but has chosen Hyperliquid instead.
A large portion of the tokens currently listed on Hyperliquid are Memecoins, and 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 is the first decentralized lending platform on Hyperliquid's EVM, with no official background.
The project has automated 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, requiring borrowers to provide collateral exceeding the loan amount to ensure the security of the loan. Meanwhile, the platform dynamically adjusts interest rates based on market supply and demand.
According to official website data, the product currently 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 areas.
Native Domain Project: Hyperliquid Names
You can associate this project with 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 human-readable names and crypto addresses.
Hyperliquid Names is the native domain project of Hyperliquid, soon to launch domain auctions on Hyperliquid, and is currently preparing for domain auctions - whitelist applications.
Hyperliquid Names has now been launched on the testnet. Its gameplay can refer to the gameplay of Ethereum domain names, and it is expected that domains like Jeff and xulian will become expensive domains.
Stablecoin Protocol: Felix
Felix is a stablecoin protocol within the Hyperliquid ecosystem that maintains the stability of the stablecoin's value by anchoring 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 based on market conditions to respond to price fluctuations. For example, when the stablecoin price is above the anchored value, the protocol will increase the supply of the stablecoin to bring its price down; conversely, when the price is below the anchored value, it will reduce the supply to increase the price.
Currently, this stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income using the Felix vault.
The protocol is supported by the decentralized lending protocol Liquity, with nearly $2 billion in assets in the pool according to official website disclosures.
Liquid Staking Protocol: Thunderhead
Thunderhead is a liquid staking token issuance platform that helps emerging blockchain ecosystems by providing what's called ecosystem as a service. It currently provides liquid staking services for multiple blockchain protocols, selected and collaborated with by the Hyperliquid team.
Users can stake their crypto assets on the platform to earn corresponding staking rewards while maintaining 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 as liquidity on other DeFi platforms, realizing a 'secondary utilization' of the assets. For example, liquid staking tokens obtained after staking ETH can be used on other platforms that support the token to participate in liquidity mining for additional profits.
Liquid Staking Protocol: Kinetiq
This project is the top liquid staking protocol on Hyperliquid, aiming to leverage StakeHub as its operating system to establish kHYPE as the pioneering staking pool on Hyperliquid.
StakeHub is a self-governing validator scoring and staking allocation protocol designed to be fully adopted with elite management from the ground up. This means no behind-the-scenes deals, pre-selection, or bias against validators obtaining $HYPE from Kinetiq.
Validators must continuously 'earn income,' and if they meet or exceed StakeHub's standards, they will receive $HYPE delegation rewards from Kinetiq. Otherwise, they will re-delegate their shares.
This is a new project, with StakeHub v0.1 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 companion girlfriend. The core of the project is that users can earn points through interactions with the electronic girlfriend, and users holding $LQNA tokens can obtain more rewards in this way. In addition, the electronic girlfriend has the ability to learn trading, will trade on the Hyperliquid platform, and will distribute airdrops based on the earnings.
The upcoming LQnians from Liquina.hl will include 3,000 NFTs, of which 2,001 will be distributed through airdrops and 999 will be sold through auctions.
Native DEX: HyperSwap
This project has just started, being the first native DEX on Hyperliquid EVM, and the testnet is now live. 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 within the Hyperliquid ecosystem.
GameFi: Vegas GamebleFi
Vegas GamebleFi is the first GamebleFi on HyperLiquid that combines utility and gaming using a fairness proof system, with $VEGAS launching in July 2024. The project's goal is to bring...
GambleFi feature. The game is still under 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 Telegram groups, achieving real-time follow trading. This social trading approach allows users to trade independently and interact 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 the trading fees for PVP Trade are extremely low, nearly negligible.
The project currently has airdrop expectations, as users can earn points through trading. Many users are actively participating since these points will be used for the upcoming token airdrop. According to user discussions on X, many whales are optimistic about it.
Conclusion
Hyperliquid is a dark horse that has emerged this year, with many new applications being actively built and new projects being added almost daily. To learn more about Hyperliquid, you can visit the Hyperliquid ecosystem page on RootData: 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.
