Author: Arain, ChainCatcher
Editor: Nianqing, ChainCatcher
In every bull market, a dark horse exchange will emerge, and Hyperliquid seems to be the dark horse in this bull market.
Although it has not yet been listed on CEXs such as Binance and Coinbase, Hyperliquid's fully diluted valuation (FDV) has now reached US$27 billion, making it one of the top 30 crypto assets by market value. The performance of its HYPE token is even more eye-catching. The initial price of the first token offering TGE was set at US$3.9 per coin, and the price peaked at nearly US$35 per coin within a month, making it a highly sought-after asset, causing many investors who missed out on the opportunity to slap their thighs.
But if you missed Hyperliquid, there are still Hyperliquid ecological projects. You might as well take a look at which projects on Hyperliquid are worth participating in.
Investment opportunities in Hyperliquid
To understand Hyperliquid, you still need 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 (general chain), using the HyperBFT consensus algorithm to achieve low latency and high throughput, and the margin and matching engine status are fully on-chain to ensure efficient and secure transactions. At the same time, Hyperliquid launched the HIP-1 and HIP-2 token standards. Among them, HIP-1 is a native token with built-in trading functions, which allows users to create fungible tokens that are directly linked to the on-chain spot order book; HIP-2 embeds liquidity at the time of issuance, which means that liquidity is permanently bound to the HIP-1 token, solving liquidity problems from the beginning of issuance.
In addition, Hyperliquid is compatible with staking, has staking functions, and adheres to a self-funded, community-driven development model, which adds to the attractiveness of its project.
The utility and liquidity of tokens are maximized, and EVM compatibility and staking functions further enhance the platform's attractiveness and competitiveness. In addition, Hyperliquid's community-driven and self-funded model enables it to focus more on technological innovation and user experience improvement, showing strong development potential and unique value.
At present, there are several main ideas for finding opportunities on Hyperliquid:
1) New asset auction: Hyperliquid launches new assets by auctioning tickets. 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 of investors.
2) Potential projects: In the Hyperliquid ecosystem, there are multiple potential projects worth paying attention to, which is what 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 coin: 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 listing, it is currently only a possibility that market participants are discussing and participating in.
Which projects are worth participating in?
Next, we will focus on which projects on Hyperliquid are worth participating in, and exclude some projects that are "old wine in new bottles".
- 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 a liquid consensus infrastructure. Solv provides Bitcoin holders with a gateway to BTCFi by addressing the fragmentation of BTC assets, yield opportunities, and custody solutions. Powered by its Staking abstraction layer, Solv introduces a unified framework that enables seamless interoperability between more than 15 platforms.
According to official disclosures, Solv has 25,000 BTC reserves, making it the largest decentralized Bitcoin reserve provider.
Surprisingly, Solv recently announced the much-anticipated TGE of their project and native token $SOLV. Solv did not consider CEX as the preferred destination for $SOLV listing, but chose Hyperliquid instead.
A large portion of Hyperliquid’s listed tokens are now Memecoin, and the listing of $SOLV is worth noting, which can be said to be 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.
The 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-collateralized model, where borrowers need to provide collateral that exceeds the loan amount to ensure the security of the loan. At the same time, the platform dynamically adjusts interest rates based on market supply and demand.
According to the official website, the product has nearly 110,000 users. In the future, HyperLend plans to expand its business to other areas such as options and spot margin trading on Hyperliquid DEX.
- Native domain name project: Hyperliquid Names
You can relate this project to something like Ethereum domains ENS. Hyperliquid Names is a protocol on the Hyperliquid EVM blockchain that allows users to issue, exchange, and manage tokenized .hl names, serving as a bridge between human-readable names and cryptographic addresses.
Hyperliquid Names is Hyperliquid's native domain name project. It is about to launch a domain name auction on Hyperliquid and is currently preparing for the domain name auction - whitelist application.
Hyperliquid Names is currently available on the testnet. The gameplay can refer to the gameplay of Ethereum domain names. It is expected that domain names such as Jeff and xulian will become expensive domain names.
- Stablecoin Protocol: Felix
Felix is a stablecoin protocol in the Hyperliquid ecosystem. It maintains the value of stablecoins by anchoring them to specific assets or a basket of assets, such as fiat currencies or other stable crypto assets. The algorithm and smart contract mechanism it uses can automatically adjust the supply of stablecoins according to market conditions to cope with price fluctuations. For example, when the price of a stablecoin is higher than the anchor value, the protocol will increase the supply of the stablecoin to bring its price down; conversely, when the price is lower than the anchor value, it will reduce the supply to increase the price.
Currently, the stablecoin protocol allows users to deposit collateral and borrow feUSD to earn income using the Felix Vault.
The supporter behind this agreement is the decentralized lending protocol Liquity. According to data disclosed on the official website, the pool currently has nearly US$2 billion in assets.
- Liquidity Staking Protocol: Thunderhead
Thunderhead is a liquidity pledge token issuance platform that helps emerging blockchain ecosystems by providing so-called ecosystem-as-a-service. It now provides liquidity pledge services for multiple blockchain protocols and has been selected by the Hyperliquid team for cooperation.
Users can pledge their crypto assets on the platform and obtain corresponding pledge income while maintaining the liquidity of assets. The working principle is that after users pledge assets, the platform will issue liquidity pledge tokens representing the pledged assets. These tokens can be traded, loaned, or provide liquidity on other DeFi platforms, realizing the "secondary use" of assets. For example, the liquidity pledge tokens obtained by users after staking ETH can participate in liquidity mining on other platforms that support the tokens to obtain additional income.
- Liquidity Staking Protocol : Kinetiq
The project is the premier liquidity staking protocol on Hyperliquid and aims to establish kHYPE as the pioneer staking pool on Hyperliquid using StakeHub as its operating system.
StakeHub is an autonomous validator scoring and staking protocol designed to be fully meritocratic from the ground up. This means there will be no backroom deals, pre-selection, or any bias towards validators who receive $HYPE from Kinetiq.
Validators must continuously “earn income” and if they meet or exceed StakeHub’s criteria, they will receive $HYPE delegation rewards from Kinetiq. If not, they will re-delegate their stake.
This is a new project, and StakeHub v0.1 is 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 , and mainly launched an AI electronic girlfriend. The core of the project is that users can earn points through interaction with their electronic girlfriends, and users who hold $LQNA tokens can also get more rewards in this way. In addition, the electronic girlfriend has the ability to learn trading, will trade on the Hyperliquid platform, and will be airdropped according to the points earned.
Liquina.hl’s upcoming LQnians will include 3,000 NFTs, of which 2,001 will be distributed via airdrops and 999 will be sold through auctions.
- Native DEX: HyperSwap
The project has just started, and is the first native DEX of Hyperliquid EVM. The testnet is now online. It has cooperated with Thunderhead.
- Stablecoin: Keiko Finance
The project is a permissionless lending protocol with dynamic interest rates and liquidation ratios, deployed on Hyperliquid.
Users can deposit Hyperliquid ecosystem assets and borrow the protocol’s native stablecoin, KEI, while adjusting their desired risk level and enjoying predictable interest rates.
The Keiko testnet is now live on the Hyperliquid EVM, the last 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 that uses a fair proof system to combine practicality and gameplay. $VEGAS will be launched in July 2024. The goal of this project is to bring
GambleFi features. Right now, the game is still under development.
- Trading robot: PVP Trade
PVP Trade is a Telegram-based trading robot 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 and follow orders in real time. This social trading method allows users to not only trade independently, but also interact with group members and share trading strategies.
The project is currently the only platform that allows users to short ERC-20 tokens, providing users with more trading strategy options. The short selling mechanism is relatively rare in the cryptocurrency market, and the transaction fee of PVP Trade is extremely low and almost negligible.
There is currently an airdrop expectation for the project, and since users can earn points through trading, many users are actively participating, as these points will be used for the upcoming token airdrop. According to user discussions on X, there are many whales that are optimistic about it.
Conclusion
Hyperliquid is a dark horse this year. Many new applications are being built in full swing, and new projects are added almost every day. If you want to know more about Hyperliquid, you can log in to RootData's Hyperliquid ecosystem page: https://www.rootdata.com/zh/EcosystemMap/list/335?n=Hyperliquid
For a more comprehensive overview, please visit the official ecosystem database: https://www.hypurr.co/ecosystem-projects.
