Bonds

On-chain convertible bonds, the backbone of the HyperStrategy protocol

Bonds are the most important piece of the HyperStrategy ecosystem. Bonds can be repeatedly issued by the protocol, with varying strike prices and maturity dates. These parameters will initially be set by the team, with eventual decentralization by our community.

Every bond has the following parameters: strike price, maturity date, issuance end (no more can be minted after this date), max USDT (max amount of USDT that can be minted for this bond)

Bond Lifecycle

1. User deposits USDT0 into HyperStrategy bond contract to mint bonds.

2. Receives Bonds ERC20 proportional to the amount of USDT they deposited.

3. At expiry, user redeems Bonds:

   • If HSTR price ≥ strike price → receives HSTR, benefiting from token appreciation. The amount of $HSTR one receives = (USDT bond amount / strike price).

   • Else → receives full USDT0 principal.

FULL EXAMPLE 📝

Today is 7/4/2025 and the price of $HSTR is $1.15. The HyperStrategy protocol issues a new bond with strike price = 1.25 and maturity = 8/4/2025. You mint $1000 USDT worth of bonds.

A month passes (it's now 8/4/2025) and the bond matures. The two possible scenarios are:

Above Strike: The price of $HSTR is now $1.3 (above 1.25 strike). You redeem your
bonds and get minted 1000 / 1.25 = 800 $HSTR. You are in $40 profit! (800*1.3-1000)

Below Strike: The price of $HSTR is $1.2 (below 1.25 strike). You redeem your bonds
and get returned $1000 USDT principal. No money is lost, no harm no foul.

As you can see above, in both situations the bond minter either breaks even of secures a profit by receiving market-discounted $HSTR. HyperStrategy will then use the raised USDT to buy $HYPE and continue growing/farming its treasury!

Bonds offer users upside exposure — if HSTR trades above strike, holders capture that appreciation through direct conversion.

Bonds are the protocol’s flywheel — liquid, loopable, and strategically issued.