Hyperliquid’s Money Market & LST Landscape

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Hyperliquid is widely recognized as a dominant force in the DeFi perpetual futures market, commanding over 80% market share and setting the standard for decentralized derivatives trading. However, beyond its flagship perp platform, Hyperliquid is also building a growing presence in the emerging money market and liquid staking token (LST) sectors.

This report explores Hyperliquid’s expanding footprint in these complementary areas, examining how it leverages its trading infrastructure and liquidity to offer competitive lending, borrowing, and staking solutions. By integrating money markets and LSTs, Hyperliquid aims to diversify its ecosystem and provide users with flexible, yield-generating options that extend well beyond perpetual contracts.

Key Takeaways:

• Market Leadership and Diversification: Hyperliquid dominates the DeFi perpetual futures space with over 80% market share and is actively diversifying into money markets and liquid staking tokens (LST), managing over $1.1B in combined TVL.

• Strong Lending Protocols: Top money market projects like HyperLend and Felix lead with robust TVLs of $306M and $263M respectively, offering traders and investors efficient, flexible lending and borrowing solutions.

• Innovative Stablecoin and Leverage Products: HypurrFi and Hyperdrive introduce hybrid stablecoins and isolated collateral models that enhance liquidity, reduce risk, and create unique yield opportunities for users within Hyperliquid’s ecosystem.

• Strategic DeFi Integrations: Morpho’s decentralized lending protocol, with over $130M TVL inside Hyperliquid and $5.6B overall, strengthens Hyperliquid’s lending capabilities, backed by dynamic rates and strong governance.

• Yield Optimization and Capital Efficiency: Hyperbeat drives yield through automated vaults and leveraged asset strategies, while new projects like Hyperdrive continue expanding yield options with innovative DeFi strategies and strong APYs.

Hyperliquid’s Money Market & LST Overview

Hyperliquid is well known for its dominance in the DeFi perpetual futures market, but is rapidly growing its presence in money markets and liquid staking tokens (LST). The money market segment, including HyperLend, Felix, HypurrFi, Morpho, and HyperYield manages nearly $885M in assets.

On the liquid staking and yield side, key projects like Hyperbeat, Looped Hype, Upshift, Magpie Ecosystem, and Sentiment hold around $220M in TVL, showing strong demand for staking solutions that offer yield with liquidity.

Together, these sectors contribute over $1.1B in TVL, adding to Hyperliquid’s total DeFi ecosystem value locked at approximately $1.6B. This diversification expands Hyperliquid’s reach beyond derivatives trading into lending, borrowing, and staking services.

By providing a variety of DeFi products, Hyperliquid gives users multiple ways to earn yield, access liquidity, and engage with the ecosystem, solidifying its role as a comprehensive DeFi hub ready for further growth.

Over the past month, projects within the money market category have shown varied performance. Lending platforms like Sentiment posted strong growth of +74.98%, indicating rising demand for borrowing and lending services. 

However, HyperYield experienced a significant decline of -60.84%, reflecting some volatility in the lending space. CDP-focused projects like Keiko Finance and Hyperstable faced mixed results, with some contraction observed. Overall, the money market sector remains active but shows uneven growth across different protocols.

In contrast, the liquid staking tokens (LST) and yield-focused category experienced robust expansion. Yield aggregators such as Hyperbeat and Looped Hype saw impressive growth rates of +10.55% and +83.51%, respectively, driven by increased user engagement in yield optimization strategies. 

Capital allocators like Upshift surged by +172%, highlighting demand for efficient asset deployment across chains. Similarly, Magpie Ecosystem’s TVL grew by +392%, marking strong momentum in liquid staking and related yield products. These trends suggest growing confidence and participation in flexible staking solutions that combine yield generation with liquidity.

Top 5 Projects Based on TVL

HyperLend ($306M)

HyperLend is a high-performance lending protocol within the Hyperliquid ecosystem designed for capital efficiency. It offers features such as real-time leverage, dynamic interest rates, and deep liquidity access, making it ideal for traders, quantitative analysts, and market makers seeking efficient lending solutions.

HyperLend records a total market size exceeding $410M and a TVL of around $305M. It supports substantial borrowing activity, with over $104M in total borrows.

Felix ($263M)

Felix is an on-chain borrowing and lending platform on Hyperliquid L1, designed for secure and efficient liquidity access. It offers two main products:

• CDP Market (feUSD): Users deposit collateral to mint feUSD for high-leverage trading with low borrowing costs.

• Vanilla Markets: Variable-rate lending pools for borrowing and lending asset-native tokens like HYPE, HUSD, and USDC.

Felix supports margin trading, carry trades, spot purchases, leverage looping, and yield generation through lending and liquidity provision. With around $260M in total deposits, Felix plays a key role in Hyperliquid’s DeFi ecosystem by offering flexible and dynamic lending solutions.

HypurrFi ($152M)

HypurrFi is a leveraged lending marketplace on Hyperliquid that enables users to earn enhanced yields through clean leverage loops. It issues $USDXL, a stablecoin backed by protocol revenue and tokenized U.S. Treasuries, adding stability and liquidity.

Users can lend assets like HYPE, stHYPE, and stablecoins, earn yield, and leverage their positions while keeping spot exposure. HypurrFi’s unique cashflow-driven model encourages active capital use, boosting lending, stablecoin minting, and liquidity across Hyperliquid’s DeFi ecosystem.

• Around $152M in deposits

• Monthly growth of +12.39%

• Supply APY approximately 12.5%

Morpho ($129M)

Morpho is a decentralized, non-custodial lending protocol built on the Ethereum Virtual Machine that enables overcollateralized lending and borrowing of crypto assets. As part of the Hyperliquid ecosystem, Morpho enhances Hyperliquid’s DeFi offerings by providing a trustless, efficient base layer for lending and borrowing with dynamic interest rates and robust risk management.

Across multiple chains including Polygon, Unichain, Base, and Ethereum, Morpho has amassed a total of $5.61B in deposits, with $3.74B in total value locked (TVL) and over $2B in active loans. Within the Hyperliquid ecosystem, Morpho accounts for approximately $130M in TVL, contributing significantly to Hyperliquid’s broader DeFi lending infrastructure.

Integrated with Hyperliquid’s infrastructure, Morpho allows users to leverage capital securely while fully owning their assets. Governance via the MORPHO token and active development by Morpho Labs and the Morpho Association further ensure the protocol’s growth and decentralization within the Hyperliquid network.

Hyperbeat ($100M)

Hyperbeat is a native protocol in the Hyperliquid ecosystem focused on scaling HyperEVM and enhancing DeFi yield opportunities. It offers automated vaults that optimize liquidity and capital efficiency with supply APYs between 2.5% and 12.16%.

Hyperbeat supports leverage for major crypto assets through partnerships and operates a node in collaboration with P2P.org and Hypio. Its treasury manages $HYPE and other tokens to fund Hyperliquid projects.

• TVL in vaults: $110.45M

• Largest vault deposits: $47M in Ultra HYPE, $24.6M in USDT, $16.4M in Ultra UBTC

Hyperbeat is central to Hyperliquid’s growth by providing high-yield liquidity and leveraged asset strategies.

New Exciting Projects

Hyperdrive ($35M)

Hyperdrive is a multi-functional DeFi protocol built on Hyperliquid’s HyperEVM, centered around a stablecoin money market. It enables users to earn yield on stablecoin deposits, access one-click yield strategies like the leveraged HLP vault, and borrow against their crypto portfolios without locking collateral in traditional ways.

The protocol issues yield-bearing receipt tokens that grow in value as borrowers pay interest. Unlike conventional lending platforms, Hyperdrive uses an isolated collateral model where users’ assets are only used within their own portfolio, reducing liquidity risk and increasing security.

Borrowing limits are based on a dynamic health score that reflects the value of a user’s portfolio against outstanding liabilities, allowing flexible deposits and withdrawals as long as borrowing health remains good. If the health score falls too low, liquidation mechanisms trigger to protect the protocol.

Hyperdrive also offers innovative DeFi strategies to drive borrowing demand, including leveraged borrowing with risk-adjusted interest premiums.

Key Stats:

• Total value secured: $33.9M

• Supply APYs: 7.37% for USD₣0, 8.79% for USDe, and 0.007% for HYPE

Hyperdrive’s approach offers a secure, flexible, and innovative stablecoin money market, contributing significantly to the Hyperliquid DeFi ecosystem.

Final Thoughts 

Hyperliquid’s evolution from a derivatives powerhouse to a comprehensive DeFi hub demonstrates its ability to adapt and lead in a rapidly changing market. By integrating high-performance money markets, liquid staking tokens, and innovative lending protocols, Hyperliquid offers users diverse pathways to earn yield, access liquidity, and leverage assets securely.

This multi-faceted ecosystem not only broadens user participation but also enhances capital efficiency and risk management across its platforms. With steady growth and new projects like Hyperdrive gaining momentum, Hyperliquid is well positioned to sustain its competitive edge and fuel the next wave of decentralized finance innovation.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.