How LHYPE works
A Liquid Looping Token that utilizes an automated looping strategy to generate a higher yield for stakers on Hyperliquid.
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A Liquid Looping Token that utilizes an automated looping strategy to generate a higher yield for stakers on Hyperliquid.
Last updated
Was this helpful?
Example:
A whitelisted user deposits 200 HYPE and receives ~200 newly-minted LHYPE in return, minus the gas & execution fees to execute the transaction.
Slippage & execution fees are included in the price when minting & redeeming. loopedHYPE earns no profit from the minting or redeeming of LHYPE.
The Risk Curator oversees AutoLoop, which stakes the underlying HYPE into a Liquid Staking Protocol (i.e Thunderhead), receives stHYPE, then supplies it to a decentralized lending protocol, borrows HYPE against stHYPE, and stakes HYPE again. This strategy is recursively executed up to 15x.
The Risk Curator calibrates AutoLoop to rebalance the position daily. Based on the current market conditions, the multiplier is adjusted for the most efficient and safest looping strategy.
→ Read LHYPE's Security & Risk Framework
