The HypurrFi Vision

The world runs on debt. This isn't merely an observation but the cornerstone of economic reality and HypurrFi's mission. We recognize that without robust debt mechanisms, the entire chain economy lacks a solid foundation, and as a new emerging tsunami of financial force, Hyperliquid needs a strong foundation of debt products and servicing.

"If the world runs on debt and we don't have transparent access to it, then we're being controlled by those that understand where the real risk sides of the equation are. You see that with pretty much every system that exists, lack of transparency on exposure, defaults, whatever it may be." -HypurrFi Co-Founder Andrew Redden

This insight leads to HypurrFi's mission: to become the debt foundation upon which the house of onchain finance is built. More specifically, on top (or underneath) the Hyperliquid ecosystem, which is positioned to become the home for global finance onchain.

The Strategic Opportunity: HypurrFi Within the Hyperliquid Ecosystem

The choice to build on Hyperliquid isn't coincidental. Hyperliquid offers immediate, tangible value through its high-performance exchange and committed trader user base.

With technology and liquidity building on Hyperliquid makes us connected at the hip to an entity that has billions of dollars of open interest and we can go in the door from our ecosystem straight into the financial furnace in 2.1 seconds maximum. That exists nowhere else.

This strategic alignment creates a natural division of responsibilities:

• Hyperliquid: The comprehensive financial ecosystem with top-tier exchange capabilities, high-performance infrastructure, and trading utilities

• HypurrFi: The specialized debt infrastructure provider that enables capital efficiency, stability, and leveraged opportunities within that ecosystem

Hyperliquid is becoming the chain where global finance happens. They care about hard finance because they have an exchange that is a massive black hole for opportunity and liquidity while every other new chain shows they are a black hole for promises. Hyperliquid executes on vision with tangible products that serve real users, which makes building alongside and on top of Hyperliquid a vast leap ahead of building for pure speculation.

Within Hyperliquid’s financial house, HypurrFi is building for users as foundation-critical debt infrastructure that makes everything else in hard finance possible.

The Product Strategy: Building Debt Infrastructure for Real Users

HypurrFi's product development strategy follows three key principles that support its role in the broader Hyperliquid ecosystem:

1. Deep User Discovery and Responsiveness

Rather than building based on assumptions, HypurrFi engages in continuous customer discovery with Hyperliquid's sophisticated user base. In Telegram, meeting 1:1 with users large and small, meeting at events, and founder-led Q&A on X, soliciting feedback on the app and sending user surveys, HypurrFi runs on user feedback.

This results in products that solve real problems for actual Hyperliquid users rather than theoretical ones.

2. Building Long-Term Financial Systems at Scale

Rapid growth at any cost leads to short term wins for short-term victories. We are not here for the short term. HypurrFi takes a measured approach to help maintain the stability of the entire Hyperliquid ecosystem.

If we reached $1B TVL tomorrow purely on leverage, there's a good chance we're over-levered and overexposed and a systemic risk event waiting to happen.

Instead, we take measured risk that takes a comprehensive examination of available liquidity for liquidations and user needs into account. The strategy is intended to build long-term trust and track record with users and partners alike, ensuring that HypurrFi is a stabilizing force across Hyperliquid.

3. Composable, Capital-Efficient Debt Products

HypurrFi's product suite is designed to maximize capital efficiency while maintaining security:

• Lending and borrowing markets for HYPE, stHYPE, assets with good liquidity and strong borrow demand such as UBTC and UETH, and stables

• USDXL stablecoin backed by over-collateralized assets (and soon yield-bearing treasury reserve backstop)

• Isolated markets for assets without exposing the pooled lending protocol to rehypothecation or liquidity risks

• Looping strategies that allow for leveraged positions while maintaining spot exposure

• Trade aggregators in-app swaps that allow users to find the best rates when swapping assets via lending and looping strategies

• Liquidation efficiency routing for liquidations with minimal slippage

• Strategy vaults for users to put their assets to work across lending and DeFi

Importantly, HypurrFi's product lineup will continue to evolve based on user needs. The team is committed to developing any product that serves the core mission of providing efficient debt infrastructure, rather than being limited to a predefined set of offerings or competing for market share in established categories.

HypurrFi Products and Their Strategic Value to Hyperliquid

Lending Markets: The Debt Foundation for Global Finance

HypurrFi's lending markets represent the bedrock of its offering within the Hyperliquid ecosystem. By enabling users to deposit assets like HYPE and stHYPE to earn interest, and allowing others to borrow against those assets, the protocol creates the fundamental debt rail necessary for a functioning financial system.

The lending markets create multiple value streams for the Hyperliquid ecosystem:

• Interest income for Hyperliquid users who lend their assets

• Capital access for traders seeking leverage

• Increased utility for Hyperliquid's native assets

• Enhanced market stability through transparent collateral requirements

This is just the beginning. As financial assets increasingly move onchain, HypurrFi's lending markets are positioned to become the debt infrastructure for a vastly expanded universe of financial instruments:

• Real World Assets (RWAs) will require credit facilities and debt financing for fractional ownership

• Tokenized equities will need margin lending for sophisticated trading strategies

• Index products will benefit from composable debt for efficient portfolio management

• FOREX markets moving onchain will require collateralized debt positions

• Tokenized perpetual futures positions will need debt infrastructure for cross-margin efficiency

• Derivatives and structured products will be built upon HypurrFi's debt rails

The vision extends far beyond current crypto assets. We are building the systems to issue all debt. By building the debt foundation now, we are positioned as the foundation of the onchain financial revolution, ready to scale by orders of magnitude as traditional finance increasingly migrates to blockchain infrastructure.

USDXL: A Yield-Backed Stablecoin With Global Ambitions

USD by Last, or USDXL, is a strategic stablecoin designed with hard finance in mind:

1. Hybrid backing structure: USDXL combines over-collateralized user deposits with a growing backstop reserve of yield-bearing assets for 1:1 redemptions (redemptions coming in the near future)

2. Institutional appeal: Targeting large institutions and trading desks with a secure, transparent stablecoin option as rails for settlement in an institutional-friendly format

3. Cross-chain potential: While launching on Hyperliquid first, USDXL is designed with broader applications in mind, leading cashflow back to the Hyperliquid ecosystem via front or back office use cases

The continual allocation of protocol profits bolsters a large, productive reserve of tokenized yield-bearing assets backstopping USDXL. The reserve acts as an emergency backstop, yield stabilizer, and long-term revenue generator, leading to a more liquid and secure USDXL stablecoin for use in Hyperliquid DeFi, cross-chain, and in traditional marketplaces.

The reserve strategy of using yield-bearing assets creates a powerful flywheel effect. Protocol revenue strengthens reserves, generating more yield, which further secures the peg and creates sustainable growth potential. This model offers advantages that make USDXL attractive to sophisticated financial players both within and beyond the Hyperliquid ecosystem.

Additionally, the USDXL launch was permissionless, fair, and open to any lender on HyperEVM, that is to say anyone with an internet connection. No gating, predeposit deals, or OTC liquidity provision provided backdoor deals for early access to USDXL, markets, or points. We believe this follows the example set by the Hyperliquid team for an asset that exists as a value-laden utility rail rather than a speculative insider game.

Isolated Markets: Expanding Hyperliquid's Debt Capabilities

The isolated markets represent a strategic expansion that allows for experimentation without exposing pooled protocol assets to rehypothecation or liquidity risk. Using Fraxlend's paired market model, these isolated markets enable:

1. Lending and borrowing of a wider variety of assets

2. Custom risk parameters for each asset pair

3. Third-party strategy integration for special use cases

This approach enables innovation within the Hyperliquid ecosystem while maintaining safe parameters around asset acceptance and issuance for the core debt infrastructure.

The first isolated lending market for LHYPE-USDXL is a perfect example. LHYPE is likely to correlated with pooled assets HYPE and stHYPE to be a safe addition to the pooled markets. However, on its own, users can choose to deposit LHYPE as collateral and other users can deposit USDXL according to their own risk tolerance. LHYPE depositors borrow the USDXL from others, and not directly from the protocol. This structure enables a massive variety of finance strategies for multiple assets, asset types, and risk parameters. We are excited for more people to grasp the potential for isolated markets in the Hyperliquid system.

Trading and Swap Functionality: User-Centric Expansion

A prime example of HypurrFi's user-focused approach is the upcoming trading and swap aggregator feature. HypurrFi's swap implementation serves a specific purpose: providing users and the protocol itself with optimized routing for swaps and liquidations through trade routes with the best possible prices for users.

This routing aggregator will leverage the strongest elements of the Hyperliquid ecosystem rather than attempting to replace them. By collaborating with and building upon existing liquidity sources, HypurrFi enhances the efficiency of its core debt operations while improving the user experience.

This approach exemplifies HypurrFi's philosophy: building complementary products that serve user needs and strengthen the foundation of debt infrastructure to increase the utility and value of the system overall. Making better products for ourselves and users creates opportunity and growth for the entire ecosystem of builders.

Evolving Product Suite

The HypurrFi team is committed to continually expanding its product offerings based on user needs and feedback. New features and products will be developed not based on market trends or competitive pressures, but on their ability to strengthen the debt foundation of the Hyperliquid ecosystem.

This user-focused approach means that while the core mission remains constant – providing robust debt infrastructure – the specific products and features will evolve organically as the ecosystem grows and user needs become more sophisticated.

The Long-Term Vision: The Debt Home for Hyperliquid Finance

The long-term vision for HypurrFi within the Hyperliquid ecosystem is ambitious but clear:

"Our North Star is literally to be the foundation that the House of Finance is built on top of... We just want to be the place that literally issues all the debt in the world, right? We want to have more debt issued and exposed and under our purview than any other single entity that could ever possibly exist." -HypurrFi Co-Founder Andrew Redden

This isn't merely about creating a successful DeFi protocol - it's about providing the debt infrastructure that makes Hyperliquid's entire financial ecosystem possible.

You can't have a house without a rock solid foundation. All ecosystems of money are built on a rock solid foundation of debt. You cannot have a functioning monetary system without any capital vehicles. And debt is the largest capital vehicle that exists and that's ever been created in the history of mankind. The second one is compound interest. And interestingly enough, our markets provide both.

The potential implications for onchain debt on Hyperliquid are profound:

1. Enhanced capital efficiency: Allowing traders to maximize their opportunities through responsible leverage

2. Transparent risk assessment: Making the true risks of the financial system visible to all participants

3. Efficient capital allocation: Directing capital to its most productive uses through clear market signals

4. Sustainable yield generation: Creating long-term value through productive debt rather than speculation

The Path Forward: Scaling the Debt Foundation

HypurrFi's growth strategy involves careful balancing to serve the expanding Hyperliquid ecosystem.

1. Measured, Sustainable Growth

HypurrFi is ensuring the pace we're going is not slower than the market, but we also don't want to be three or four laps ahead of everybody and realize that we have no way to unwind.

This prudent approach builds long-term stability for the entire Hyperliquid ecosystem rather than chasing short-term TVL growth for the sake of short-term wins.

2. Strategic Partnerships With Sophisticated Players

HypurrFi is actively building relationships with established market makers, funds, and strategic partners who understand the value of robust debt infrastructure within Hyperliquid.

The opportunity with debt is to demonstrate strong systems that can scale to users with hundreds of millions, billions, trillions in value to allocate. Building alongside teams such as Hyperliquid, hyperunit, and others is a testament to the scale that we have in our sights as the goals of onchain finance become more real each day.

3. Expanding the Product Suite Based on Hyperliquid User Needs

The roadmap will continue to evolve based on user feedback and ecosystem needs. Rather than following a rigid plan, HypurrFi will adapt to serve the debt infrastructure needs of the Hyperliquid ecosystem as it grows. Current priorities include:

• Increasing liquidity depth and access to more markets

• Supporting staking for LP positions

• Adding stablecoins and prime assets via Hyperunit

• Growing a strong community of isolated market pairs

• Developing efficient routing solutions for trading and liquidations

• Developing a robust backing system for USDXL

Each new product or feature will be evaluated based on how well it serves the mission: providing the best possible debt infrastructure for the Hyperliquid ecosystem.

The Foundation of Debt for Hyperliquid's House of All Finance

HypurrFi stands out for our focus on the fundamental debt infrastructure needed for sustainable onchain finance within the Hyperliquid ecosystem. By recognizing that debt is the foundation upon which all financial systems are built, HypurrFi is essential infrastructure for Hyperliquid's future as the home of all finance. We see ourselves as building alongside other long-term builders creating a more transparent, level playing field for all finance.

If we want to build new onchain ecosystems and we don't have robust debt mechanisms that can help ease burdens, liquidity crunches, and high-demand moments, then we aren't really building, we aren't solving anything. It is not just technical throughput that needs to scale, but liquidity throughput as well. Debt enables this.

HypurrFi's vision goes beyond creating another lending protocol - it's about building the debt foundation that enables Hyperliquid to flourish as the home of true onchain finance, creating a more transparent, efficient, and accessible financial system for all.

The team's commitment to user-focused development ensures that as Hyperliquid grows, HypurrFi will continue to evolve alongside it, developing whatever products and features are necessary to maintain a robust debt foundation for the ecosystem. HypurrFi will focus on enhancing capital efficiency, transparency, and security within its core mission of being the the foundation of debt for Hyperliquid's house of finance.

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