Liquid Perpetual Positions
Liquid Perpetual Positions will be a financial service enabled by HyperLend.
It will allow you to open a leveraged position on the EVM while being able to use it as collateral in our isolated pools section.
At the begining you will be able to open a position with USDC (eventually other assets as well) which then transfers it to Hyperliquid L1 exchange, where it's used as a margin to open a futures position. Profits (or losses) + funding fees are accrued to the user.
To redeem the underlying USDC, shares are burned, a proportional portion of the position is closed and USDC is transferred back to the vault where it can be claimed.
sharePrice = (perpPositionMargin + PnL + fundingFees) / totalShares
If the futures position is losing money, the share price declines (and if the position is profitable, the share price increases).
Behind the scene; They are a type of ERC-4626 vaults that allows users to use their Hyperliquid perpetual futures positions as collateral on HyperLend.
Yield-Bearing Perpetuals
In short; it means you will be earning yield by using your perpatual position as collateral (+funding fees).
? How - you open a position, get token shares in return representing that position and use it in our Isolated pools as collateral and then use that collateral in the ecosystem.
Concrete Example with theoretical numbers:
Open a 2x leveraged BTC-perp (for a total notional size of 2,000,000 USDC using 1,000,000 USDC of margin) for 1 month.
Over one month, your position generates a profit of 150,000 USDC and 40,000 USDC in funding fees — raising your vault balance to 1,190,000 USDC.
You put the token shares into our Isolated pools and borrow 200,000 USDC (10% LTV) and deposit that into a HLP (Hyperliquid Provider Vault) earning ~20% APR, which yields ~3,333 USDC over the same period.
Total profit: 193,333 USDC = 190,000 USDC (trade + funding gains) + 3,333 USDC (vault yield from borrowed capital)
While holding a leveraged perp position, you used your token shares as collateral to earn an additional 3,333 USDC without risking extra capital.
Use Cases:
Yield-on-Margin: Profitable positions that users don’t want to touch (to avoid liquidation risk) can be borrowed against. Funds borrowed can earn yield elsewhere without adjusting the margin, capturing additional yield.
Basis Trade Leverage: Basis trades often hit a cap due to rebalancing and risk management, by looping capital from one leg (e.g. taking a loan against the long), you can amplify returns without disturbing hedged structure.
Delta-Neutral Risk Transfer: Liquidators or hedgers can atomically buy a short position to offset directional risk, perp positions as transferable tokens make them tradable in secondary venues—less reliance on on-book execution.
MM Strategy Vaults: Market makers could tokenise their perp inventory, retail-facing platforms or originators route trades to these tokenised perps instead of public book, vaults can be created to take part in order flow PnL from MMs.
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