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.

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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 5x leveraged BTC-perp (for a total notional size of 5,000 USDC - 1,000 USDC of margin) for 1 month.

• Over one month you generate a profit of 150 USDC and 40 USDC in funding fees - raising your vault balance to 1,190 USDC.

• You put the token shares into our Isolated pools and borrow 300 USDC and deposit that into a HLP (Hyperliquid Provider Vault) and earn around 20% APR: around 5 USDC over the same period.

• Total profit: 195 USDC = 190 USDC (profit and funding fees) + 5 USDC (HLP vault provider yield)

while having a leveraged position opened you used capital to earn you extra 5 USDC on your 1,000 USDC worth position.

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