Exercise on the lending protocol is growing alongside the remainder of the Hyperliquid ecosystem.
As Hyperliquid’s token trades close to its all-time excessive, exercise on the HyperEVM is surging, and Felix, a collateralized debt place (CDP) and lending protocol, has simply handed $100 million in excellent loans.
The utilization ratio is roughly a 60:40 cut up between Felix’s CDP and vanilla lending markets, with $61 million borrowed by way of its CDP and $43 million borrowed by way of its vanilla market.
Felix is the second-largest protocol on Hyperliquid’s EVM, with $265 million in TVL, accounting for nearly 17% of the chain’s DeFi liquidity. The protocol’s TVL has been on an upward trajectory during the last two months, and is up 813% since its official mainnet launch on April 8.
Felix solely trails Hyperlend, which boasts $306 million in TVL.
The expansion may be attributed to the speedy enlargement of the HyperEVM, which has surged by 350% during the last two months to $1.58 billion in TVL, in comparison with simply $350 million in the beginning of April. Felix additionally has an ongoing factors program, which rewards customers for using in-app options corresponding to minting its artificial greenback, feUSD, or incomes yields via USDe and USDT0 vaults.
Exercise on the EVM can also be being pushed by elevated hypothesis of a future HYPE airdrop. Nonetheless, it’s value noting that there is no such thing as a confirmed factors program, neither is there a concrete purpose to imagine that EVM exercise particularly will likely be rewarded by Hyperliquid’s future incentives. Nonetheless, customers are greater than keen to take a position, contemplating Hyperliquid’s multi-billion-dollar struggle chest.
Charlie.hl, a contributor to Felix Protocol, informed The Defiant that customers could also be interested in Felix versus different protocols on Hyperliquid as a result of protocol’s versatility. “Users have optionality on Felix, both on the supply side and borrow side, which is a bit unprecedented in an ecosystem as early as HyperEVM.”
He additionally cited an upcoming characteristic generally known as write precompiles as a possible catalyst for additional innovation inside Hyperliquid. As of this morning, write precompiles have been renamed within the Hyperliquid docs to “CoreWriter Contract”.
Charlie stated he’s “Expecting substantial unlocks on the market side when write precompiles go live, and HyperEVM protocols can integrate much more closely with HyperCore. This should enable a bit more of the HyperEVM realization of being a vehicle for trader optimization on HL.”
