Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
Every bull market cycle brings a dark horse exchange, and Hyperliquid seems to be that dark horse in this round.
Although it has not yet listed on Binance, Coinbase, and other CEX, Hyperliquid's fully diluted valuation (FDV) has currently reached $27 billion, entering the top 30 of crypto asset market capitalization. Its HYPE token has performed remarkably, with the initial price of the first token issuance TGE set at $3.9 each, peaking at nearly $35 within a month, making it a sought-after asset and leaving many sidelined investors feeling regret.
But if you miss Hyperliquid, there are still Hyperliquid ecosystem projects worth checking out.
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 designed for high-performance perpetual contract order book exchanges (universal chain), utilizing the HyperBFT consensus algorithm to achieve low latency and high throughput, with margin and matching engine states entirely on-chain to ensure efficient and secure transactions. At the same time, Hyperliquid has introduced the HIP-1 and HIP-2 token standards. Among them, HIP-1 is the native token with built-in trading functions, allowing users to create replaceable 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 beginning of issuance.
Additionally, Hyperliquid is compatible with staking, has staking functionality, and adheres to a self-funded, community-driven development model, adding appeal to its projects.
It maximizes the utility and liquidity of tokens, and the EVM compatibility and staking functionality further enhance the platform's appeal 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 ways to look for opportunities on Hyperliquid:
1) New Asset Auctions: Hyperliquid lists new assets through auctioning Ticket positions. There are many tickets, but the number of assets that can be speculated is very limited. With the market's enthusiasm for HYPE, finding the next speculative target has become investors' goal.
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, Meme exists as a main line, and Meme coins on Hyperliquid are also an opportunity, such as PURR.
6) Old Asset Shell: Similar to backdoor listings, it is currently just a possibility 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 that is very worthy of attention.
Solv is a decentralized Bitcoin staking protocol with a good reputation. The project aims to unlock the full potential of Bitcoin assets through liquidity consensus infrastructure. By addressing issues of BTC asset fragmentation, 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 holds a reserve of 25,000 BTC, making it the largest decentralized Bitcoin reserve provider.
Surprisingly, Solv recently announced the highly anticipated TGE and native token $SOLV for their project. Solv has chosen Hyperliquid as the preferred destination for $SOLV listings instead of considering CEX.
Currently, a large portion of the tokens listed on Hyperliquid are Memecoins, and the listing of $SOLV is worth attention, which can be said to be a significant move.
Native Decentralized Lending Protocol: HyperLend
HyperLend is the native lending protocol on Hyperliquid and is also the first decentralized lending platform on Hyperliquid's EVM, with no official background.
This project automates the lending process through smart contracts, allowing users to borrow and lend assets without trusting third parties. Its operational mechanism is based on an over-collateralization model, where borrowers need to provide collateral exceeding the loan amount to ensure the safety of the loan. At the same time, 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 to options and spot margin trading on Hyperliquid DEX and other areas.
Native Domain Name Project: Hyperliquid Names
You can relate this project to Ethereum domain ENS and similar ones. Hyperliquid Names is a protocol on the Hyperliquid EVM blockchain that allows users to publish, trade, and manage tokenized .hl names, serving as a bridge between readable names and cryptocurrency addresses.
Hyperliquid Names is Hyperliquid's native domain name project, soon to launch domain auctions on Hyperliquid, currently preparing for the domain auction - whitelist applications.
Hyperliquid Names has currently 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 in the Hyperliquid ecosystem that maintains the stability of the stablecoin's value by anchoring to specific assets or a basket of assets, such as fiat or other stable cryptocurrencies. The algorithm and smart contract mechanism it employs can automatically adjust the supply of the stablecoin based on market conditions to respond to price fluctuations. For example, when the price of the stablecoin is above the anchored value, the protocol increases the supply of the stablecoin to bring its price down; conversely, when the price is below the anchored value, the supply is reduced, thereby increasing the price.
Currently, this stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income from the Felix vault.
The supporters behind the protocol are the decentralized lending protocol Liquity, which according to official data, currently has nearly $2 billion in assets in its pool.
Liquid Staking Protocol: Thunderhead
Thunderhead is a liquid staking token issuance platform that helps emerging blockchain ecosystems by providing what is known as ecosystem as a service. It is now providing liquid staking services for multiple blockchain protocols and has been selected for collaboration 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 way it works is that after users stake their assets, the platform issues liquid staking tokens representing the staked assets. These tokens can be traded, lent, or provided for liquidity on other DeFi platforms, achieving 'secondary use' of the assets. For example, the liquid staking tokens obtained after a user stakes ETH can participate in liquidity mining on other platforms that support this token, earning additional rewards.
Liquid Staking Protocol: Kinetiq
This project is the leading liquid staking protocol on Hyperliquid, aiming to utilize StakeHub as its operating system, establishing kHYPE as the pioneering staking pool on Hyperliquid.
StakeHub is a self-verifying validator scoring and equity distribution protocol designed to be fully adopted from scratch with elite management. This means there will be no behind-the-scenes transactions, pre-selection, or bias against validators receiving $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. 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, NFTs, and blockchain technology, primarily 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 $LQNA tokens can also earn more rewards in this way. Additionally, the electronic girlfriend has the ability to learn trading and will trade on the Hyperliquid platform, airdropping based on the earned profits according to points.
The upcoming LQnians from Liquina.hl will contain 3000 NFTs, of which 2001 will be distributed via airdrop and 999 will be sold through auctions.
Native DEX: HyperSwap
This project has just started, and it is the first native DEX on Hyperliquid EVM, now launched 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, which is the final step before deploying the mainnet for 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 that combines utility and gaming using a fairness proof system, launching $VEGAS in July 2024, aiming to bring to HyperLiquid.
GambleFi functionality. Currently, the game is still under development.
Trading Bot: PVP Trade
PVP Trade is a trading bot based on Telegram that aims 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 following. This social trading method allows users to not only trade independently but also 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 of PVP Trade are extremely low, almost negligible.
This project currently has expectations of airdrops, as users can earn points through trading, and many users are actively participating, as 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. Almost every day, new projects are being added, and if you want to know 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, you can check the official ecosystem database: https://www.hypurr.co/ecosystem-projects.