How it works

How HyperStrategy works!

HyperStrategy bootstraps protocol-owned HYPE via:

Deployed initially on Hyperliquid’s EVM layer, it allows users to participate in HSTR upside while using the raised capital to accumulate HYPE.

Mechanics

Convertible Bonds

  • Bonds are issued against USDT0, maturing at a set expiry.

  • A strike price is set for $HSTR (HyperStrategy), denominated in USDT. For example "HSTR Convertible Bond $1.25 8/4/2025" is a HyperStrategy convertible bond with a strike price of $1.25, expiring August 4th, 2025.

  • At bond maturity, bondholders either:

    • Convert into HSTR if market price ≥ strike. Market price is determined by the 30 min TWAP reported by Uniswap (Hyperswap in HyperEVM's case) Oracle.

    • Redeem USDT0 principal otherwise. They will receive their full USDT amount with no loss.

Bonds:

  • Bonds are an ERC-20 representation of the convertible position.

  • Tradable, and composable.

  • Each bond embodies a direct and liquid position in the protocol’s structured HYPE accumulation cycle.

Treasury Farming

The HYPE that the HyperStrategy treasury accumulates will not be sitting idly - our team consists of advanced defi veterans with cycles of experience farming almost everything under the sun. We believe the HyperEVM ecosystem remains one of the best opportunities to generate yield bar none, and we will be deploying $HYPE across the best risk-adjusted farms in the space. We've already established several partnerships with some strong up and coming defi protocols native to HyperEVM who will be offering us special TVL deals.

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