- Published on
HypurrSpace Episode #4
- Authors
1. BLP (Borrow/Lending Protocol)
BLP (Borrow/Lending Protocol) has been mentioned and acknowledged by the community, but there has been no official announcement confirming its development or purpose. The protocol is currently available on testnet, though the timeline for mainnet deployment remains unknown.
Current Status
- Testnet: Borrow, Supply, and Withdraw functions are available and confirmed using USDC and PURR
- Mainnet: The timeline for mainnet deployment remains unknown at this time.
Implementation Approaches Comparison
| Approach | Pure Borrow/Lend | UTA Style | HyperEVM Integration | Decentralized Deploy (HIP-1, HIP-3 style) |
|---|---|---|---|---|
| Mechanism | Lending: Borrow stablecoins → use for trading / Borrowing: Deposit major assets → earn yield | Bybit style. Not direct lending but deposit collateral → USD conversion → margin granted → open perp positions | Direct integration with EVM-based protocols. Users choose multi-asset margin or passive lending options | Collateral approval conditions: staking & slashing mechanism, maintain high orderbook liquidity |
| Pros | Executed on HyperCore, improving UX and stability | Open futures positions with assets other than USDC/USDT/USDH as collateral | Removes risk parameter setting burden from HL team | Adds utility to HIP-1 tokens, additional HYPE staking and protocol revenue |
| Cons | Competes with HyperEVM ecosystem | - | Third-party smart contract risk, HyperEVM → HyperCore direction structurally impossible | Negative impact on HyperEVM ecosystem except token deployer (Unit) |
Ecosystem Impact
For Pure Borrow/Lend Approach:
- Direct competition with Aave forks (HyperLend, HypurrFi) and Morpho curators (Felix, Hyperbeat)
- Users will choose based on stability, interest rates, and points programs
- Major HIP-1 assets like BTC, ETH, HYPE may be used on Hyperliquid, while low-cap assets or Pendle/LST/Yield Tokens may bifurcate to HyperEVM
For UTA Approach:
- Not direct competition with HyperEVM ecosystem, but may see user outflow from those who were borrowing stables against HYPE/BTC/ETH collateral on HyperEVM and transferring to HyperCore for trading
Inevitable Outcomes
- Coin-collateralized perp positions will be possible (whether via stablecoin lending or direct utilization is TBD)
- Liquidation management through HyperCore orderbook and Mark Price instead of external oracles (Pyth, Redstone, etc.) → reduced risk
- Major tokens will be utilized on HyperCore, while other assets will be utilized on HyperEVM
Why Build BLP?
- Nobody is utilizing HyperCore: HyperEVM projects and Curators only use external oracles
- Technical limitations: The team's envisioned liquidation mechanism using HyperCore orderbook and oracles may have been difficult to implement on HyperEVM with just Read Precompiles/CoreWriter
- Integration convenience: Directly integrated into HyperCore, external frontends can easily access lending alongside Perp + Spot trading via builder codes
- Loracle's perspective: Permanently embed proven financial primitives from general-purpose chains into chain state. Pool-based lending with interest rate curves has proven to be sufficiently stable and efficient. Hardcoding logic into Core is much faster and safer. Because the Hyperliquid team chose a structure that allows quick and easy upgrades to network and Core state early on, they can implement new standards faster than other chains.
2. HIP-3 Updates
New Pairs Launched
- Trade.xyz: NVDA, TSLA, PLTR pairs launched
- Felix: TSLA pair launched
- Ventuals: SpaceX pair launched
Three Deployer Comparison
| Item | Trade.xyz | Felix | Ventuals |
|---|---|---|---|
| HYPE Staking | Own HYPE | Hyperion + Smartestmoney | Crowd Funding |
| Oracle Source | Pyth Network | Redstone | Notice |
| Collateral | USDC | USDH (If Aligned Stablecoin passes: reduced user fees, increased trading contribution, 50% of USDH revenue used for HYPE buyback) | USDH |
| Leverage | 10x | 5x | 2x |
| Funding Rate | - | Relaxed Funding structure | Relaxed Funding Rate (1/500 of HL) |
| Mark Price Calculation | 1. Oracle price 2. Oracle price + 150 sec EMA of diff between Perp mid-price and Oracle price 3. Median of best bid, best ask, last trade → Median of three values = Final Mark Price | Same as Trade.xyz | 1. Provided by Notice - external valuation estimate based on off-chain data sources 2. 8-hour cumulative EMA of Mark Price → 50/50 weight |
| Off-hours Trading Mechanism | Market hours: Oracle price updates directly / Off-hours: Oracle updates via continuous-time EMA, Mark Price limited to 1/max_leverage range from last external oracle price (e.g., XYZ100 20x leverage, external price 950-$1050) | Market hours: External reference based / Off-hours: Oracle price uses orderbook price EMA, price band applied based on on-hours closing price | No off-hours trading, to prevent price manipulation: long/short order price = oracle price ±20% |