↪ How to HyperLoop
Earn up to 2x your staking yield with stHYPE or kHYPE — automatically.
Looping is a yield-maximizing strategy compounding your exposure and returns automatically.
HyperLoop lets you open a leveraged loop position using any two tokens: one is supplied, one is borrowed.
• How it works
Yield asset: The token you supply to earn interest or rewards.
Debt asset: The token you borrow in the looped position, which accrues interest.
When you deposit, HyperLoop uses a flashloan to instantly build your leveraged position in a single transaction. It works like this:
A flashloan of the debt asset is taken.
That debt token is swapped into the yield asset.
The resulting yield asset is supplied as collateral.
The same debt asset is then borrowed against the new collateral.
The borrowed amount, along with your initial supplied funds, is used to repay the flashloan (since the collateral's LTV is less than 100%).
Note: Each position is held in an isolated contract. Keep in mind that the HyperLoop position will be shown seperately on "Loop" section on your dashboard.
The entire process is completed atomically using flashloans- no manual steps or repeated cycles required- and incurs a 0.04% flashloan fee on the amount used during the transaction.
• Steps to Loop
Navigate to the “Loop” section of the HyperLend platform.
Select your Yield Asset- Choose stHYPE or kHYPE — both are liquid staking tokens for HYPE and will earn interest.
Select your Debt Asset- Set wHYPE as the debt asset. This is what you'll borrow to loop back into your yield position.
Adjust Your Leverage- Use the slider to set your desired leverage. Higher leverage means higher potential returns — and higher risk.
Enter the Amount You Want to Loop- Choose how much of your stHYPE or kHYPE to deposit into the strategy.
Click “Open Position”- HyperLend will automatically handle the looping process via Liquid Launch (aggregator).
Once your position is opened, it appears in the “Your Positions” section. From there, you can track your performance and make changes.
↝ Managing Your Position
Click “Modify” next to your active position.
You can Add more collateral or Remove some, adjusting your exposure dynamically without closing the loop.
Big/Small Blocks:
HyperLend utilizes Hyperliquid’s unique dual-block system, allowing users to choose between near-instant execution and high-capacity, lower-cost processing.
By default, HyperLoop transactions are routed through Small Blocks. To switch:
Navigate to HyperLoop section and scroll down.
Click on "Enable Big Blocks"> popup pops up> click on "Switch to Big Blocks" and confirm in your wallet
Your preferred block type has been successfully updated.
Small blocks have a block time of 2 seconds and a gas limit of 2M gas. The expected gas price is 0.96 gwei.
Big blocks have a block time of 60 seconds and a gas limit of 30M gas. The expected gas price is 0.1 gwei.
Switching will require 2 signatures (approving and removing an agent address).
↝⚠️ Risk Considerations
Looping with leverage can boost your returns- but it introduces serious risks you must manage.
Liquidation Risk: If the price of your collateral drops or your Health Factor falls too low, your position may be liquidated.
LST Depeg Risk: Since you're swapping and looping between HYPE and its liquid staking derivatives (stHYPE or kHYPE), any depeg from the underlying HYPE value can put your position at risk. If stHYPE or kHYPE trades below its expected redemption value, it can cause unexpected losses and accelerate liquidation risk.
Leverage Risk: Leveraging amplifies both your gains and your downside. A 3x position falls apart 3x faster in volatile markets.
Swap Impact: The protocol performs swaps automatically to rebalance your loop. In thin markets or large positions, this can cause price impact and affect your final execution price.
Borrow Rate Volatility: Borrow rates on wHYPE are dynamic and can spike with utilization. That can erode your net yield and flip your position negative.
Always monitor your Health Factor and price relationships between HYPE and its LSTs. Stay well within your risk tolerance and adjust your position proactively when needed.
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