HyperLiquid LP Vault

Summary

Ticker: hlpUSDC Underlying venue: HyperLiquid Underlying product: HyperLiquid HLP (perp LP product) Base asset: USDC Vault type: Single-venue perp LP vault

Short description

A tokenised vault for USDC supplied to HyperLiquid's HLP, giving depositors automated access to LP fees and incentives from HyperLiquid's perp markets in a single composable asset.

Description

USDC HyperLiquid LP tokenises a depositor’s USDC into a position in HyperLiquid's HLP, turning it into a liquid, yield-bearing asset that accrues LP fees, funding, and protocol rewards from HyperLiquid's perp markets. Because the position is represented as a standard ERC-20 token, it can be easily transferred, used as collateral, or integrated across DeFi while continuing to track the performance of HLP.

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1. How the Vault Works

1.1 Deposits and Shares

1. You deposit USDC into the USDC HyperLiquid LP Vault.

2. The vault mints hlpUSDC to your address.

3. hlpUSDC represents a claim on the vault’s share of HyperLiquid’s HLP exposure and its PnL.

The value of 1 hlpUSDC (in USDC terms) floats over time with the performance of HLP.

1.2 Routing to HyperLiquid HLP

The vault allocates capital into HyperLiquid’s HLP:

• USDC is deposited into HLP according to a strategy that respects venue limits and risk parameters.

• The vault inherits the HLP pool’s exposures and mechanics across HyperLiquid’s perp markets.

• Yield sources typically include:

  • Trading fees

  • Funding flows between long and short interest

  • Incentive programs, if and when they are active

1.3 Risk Controls & Monitoring

Axtior monitors:

• HLP composition and concentration (by asset and market)

• HyperLiquid’s venue health, incidents, and parameter changes

• Funding and volume trends impacting HLP PnL

The vault may:

• Cap deposits or scale down new inflows if risk metrics breach thresholds.

• Update configuration parameters to adapt to venue-level changes, within the vault’s governance model.

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2. Yield Model

The hlpUSDC vault’s performance is driven by:

• LP fee income from trading on HyperLiquid.

• Funding from directional positioning of traders.

• Protocol rewards / incentives that may be distributed to LPs.

Returns are not guaranteed and can be negative in certain regimes. The vault’s share price tracks net performance after:

• Venue mechanics and fees

• Strategy-level fees

• Realised gains and losses on LP exposure

3. Who Is This Vault For?

USDC HyperLiquid LP Vault is designed for:

• USDC holders who want hyper-focused exposure to HyperLiquid as a venue.

• DAOs and funds that view HyperLiquid LP returns as a strategic allocation.

• Integrators who want a single ERC-20 that packages “HyperLiquid LP yield” as a primitive.

You should be comfortable with:

• Perp exchange risk and the specifics of HyperLiquid’s design

• LP PnL volatility and drawdowns

• Possible negative periods of performance

4. How to Interact

4.1 Depositing

1. Select the USDC HyperLiquid LP Vault.

2. Approve USDC for the vault contract.

3. Deposit USDC and receive hlpUSDC.

4.2 Holding & Using hlpUSDC

While holding hlpUSDC:

• You continuously track the vault’s share of HLP performance.

• You can transfer hlpUSDC, use it where accepted as collateral, or plug it into downstream DeFi strategies.

4.3 Redeeming

1. Request redemption of hlpUSDC.

2. The vault unwinds the equivalent HLP exposure, subject to HyperLiquid’s withdrawal mechanics.

3. USDC is returned to you based on your share of the vault’s assets at the time of redemption.