$HYPE Vault on HyperEVM

https://app.harmonix.fi/vaults/hyperevm-delta-neutral-hype-v3

Overview

The Harmonix $HYPE 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.

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

Yield Sources

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).

Fees – Only Charged at Withdrawal

• Management Fee: 1% per year, pro-rated based on time in vault

• Performance Fee: 10% on net profit, only charged upon withdrawal

📌 Users are encouraged to stay in the vault at least 7 days to ensure yield offsets applicable fees.

Withdrawals

Withdrawals are designed to be flexible and efficient, with built-in liquidity for timely access:

• All withdrawals are currently settled in $WHYPE

• A 5% buffer pool enables near-instant withdrawals (typically within 1 day)

• If the buffer is depleted:

  • <5% of vault TVL: Processed the next day (first-come, first-served)

  • >5% of vault TVL: May take up to 3 days

Support for $HYPE withdrawals will be introduced in a future update for added flexibility.

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