$HYPE Delta-Neutral Vault on HyperEVM

The Harmonix $HYPE Delta-Neutral Vault on HyperEVM is designed to help users earn sustainable yield on their HYPE tokens while minimizing market risk.

Overview

The Harmonix $HYPE Delta-Neutral Vault is designed to help users earn sustainable yield on their HYPE tokens while minimizing market risk. This vault leverages a delta-neutral strategy that interacts across the Hyperliquid ecosystem, utilizing Felix Protocol on HyperEVM and HyperCore Perp to capture consistent returns—regardless of whether the market moves up or down.

Strategy Summary

• Users deposit HYPE into the Harmonix Vault on HyperEVM.

• Harmonix uses the deposited HYPE as collateral to mint feUSD via Felix Protocol.

• The feUSD is swapped to USDC, which becomes the basis for the short hedge.

• The strategy then splits:

  • 50% of capital is used to short HYPE on HyperCore, earning 10–15% APR via positive funding rates.

  • 50% is used to buy back HYPE and restake into HyperEVM protocols such as DEXs and money markets, generating ecosystem yield and points.

• This creates a delta-neutral structure: gains come from yield, not price exposure.

• In return, users receive haHYPE, an ERC-4626 Yield-Bearing Token that reflects vault share and automatically accrues yield over time.

How It Works – Step-by-Step Flow

1. Deposit User deposits HYPE into the Harmonix Vault on HyperEVM.

2. Mint feUSD via Felix Harmonix uses the deposited HYPE as collateral to mint feUSD using Felix Protocol.

3. Swap to USDC The minted feUSD is swapped into USDC, which provides stable liquidity for hedging.

4. Execute Strategy Split

   1. 50% of the capital is shorted on HyperCore, earning yield from funding rates.

   2. 50% is used to buy and redeploy HYPE into HyperEVM DeFi strategies (e.g., lending, DEX liquidity).

5. Delta-Neutral Setup Complete This structure neutralizes price exposure while generating multi-source yield.

6. Issue haHYPE Users receive haHYPE, a yield-bearing ERC-4626 token that reflects vault share and accrues value automatically.

Additional Yield Boosts

Harmonix enhances returns further through multiple yield sources:

• Positive Funding Rates on HyperCore The vault earns around 10% APR from shorting HYPE perps and capturing positive funding rate differentials.

• Arbitrage Between feUSD ↔ USDC Harmonix identifies and executes arbitrage trades between stablecoins and HYPE markets to generate excess returns.

• Felix Liquidation Bonuses When HYPE's price declines, the vault is eligible to receive additional HYPE through Felix's liquidation reward mechanism.

• Yield from HyperEVM DEXs and Money Markets The vault reinvests capital into liquidity pools and lending protocols across HyperEVM to capture base yield and rewards.

• Points from HyperEVM Ecosystem Projects Users earn airdrop points not only from Harmonix and Felix, but also from participating HyperEVM protocols (e.g., Hyperswap, LoopedHYPE).

Why Use Felix Protocol?

• Native to Hyperliquid Seamless integration between Felix, HyperCore, and HyperEVM makes the strategy smooth and cost-efficient.

• Custom Risk Profiles Felix allows user-set interest rates and offers real-time liquidation transparency, making it an ideal stablecoin engine for delta-neutral execution.

• Security & Efficiency Backed by HyperActive’s security team with thorough smart contract auditing.

Risks & Mitigation

Risk Area	Mitigation Approach
feUSD Liquidity & Swap Slippage	Strategy actively monitors feUSD pool depth and limits mint/swap size to reduce price impact and slippage
Short Funding Risk	Automated funding rate monitoring adjusts position sizing and exit strategy if rates turn negative
Liquidation Exposure	Conservative collateral ratios and early liquidation detection minimize risk of loss on Felix
Smart Contract or Oracle Risk	Harmonix and Felix smart contracts are independently audited; integrations use time-tested oracles
HyperEVM Strategy Risk	DeFi deployments on HyperEVM (DEXs, money markets) are diversified and monitored to reduce protocol risk

Why This Matters for Hyperliquid

By routing liquidity across HyperEVM (Felix) and HyperCore (Perps), Harmonix:

• Deepens utility for HYPE and Hyperliquid-native assets.

• Encourages more borrowing/lending/staking behavior via Felix.

• Drives trading volume and open interest on HyperCore.

• Reinforces composability across Hyperliquid products—stHYPE, feUSD, HyperSwap.

Roadmap Expansion

Future plans include expanding this delta-neutral model to:

• uETH and uBTC via Hyperliquid spot listings

• Enhanced vault UX via Spot Swap and Staking-to-Yielding pipeline

User Experience

Feature	Details
Minimum Deposit	$10
Withdrawal	Allowed anytime, subject to a cooldown period of up to 3 days after initiating the request
Withdrawal Fee	0.001 $HYPE
Performance Fee	10%
Management Fee	1%
Entry Fee	0%