Decentralized finance protocol Hyperwave has launched a new liquid token that accrues yield from Hyperliquid’s market-making vault.
Hyperwave, a decentralized finance (DeFi) protocol built on Layer 1 blockchain Hyperliquid, has launched hwHLP, the first liquid token that earns yield from the perpetuals exchange’s Hyperliquidity Provider vault (HLP).
In a Thursday post on X, Hyperwave — incubated by Swell Labs — explained that the token enables users to profit from market making and liquidations on the Hypercore platform, while keeping their assets liquid for use in DeFi apps on HyperEVM and other networks.
Users must deposit Tether’s USDT0 or Ethena’s USDe stablecoins and mint hwHLP in return, which they can use to increase their earnings through DeFi options like liquidity pools on Curve Finance, lending, or yield trading.
Withdrawals are expected to be enabled within two weeks and will take approximately two days to process, the team says. As part of the launch, Hyperwave is also offering zero fees on hwHLP transactions for the first 90 days.
Hyperwave also emphasized that the token is supported by partners such as the DeFi lending protocol Hypurrfi, the HyperEVM-based decentralized exchange Kittenswap, the decentralized oracle Pyth Network, Goldsky, and the omnichain messaging protocol LayerZero.
Thanks to these partners, hwHLP can work across multiple blockchains without needing to be wrapped, Hyperwave says.
The launch comes shortly after Hyperliquid-based Felix Protocol crossed $100 million in outstanding loans in early June. As The Defiant reported, activity on the HyperEVM has been boosted by speculation around a possible future HYPE token airdrop, though no official rewards program has been confirmed thus far.
