Charting the HyperEVM Hype

Hyperliquid’s HyperEVM expansion is right around the corner, literally, and amid launch speculation, ecosystem excitement is catching fire.

Hyperliquid’s perpetuals DEX was launched back in 2022 and has quickly risen to become one of the go-to platforms for perps traders. The DEX is averaging a whopping $4.4B in volume per day and continues to hit new all-time highs there, with half of all onchain perpetual DEX trades taking place on the platform.

That's a wild amount of activity for a chain with a single live application... Enter Hyperliquid bulls, who see the HyperEVM expansion allowing a multitude of apps to participate in a tremendous surge in onchain activity.  Said apps won’t be drawn just by the chain’s volume but also by its novel underlying tech:

• Projects that expand to the HyperLiquid ecosystem will benefit from the chain’s consensus mechanism, HyperBFT, which can handle over 100K transactions per second at extremely low gas fees. 
• HyperLiquid uses a unique mechanism to enable permissionless listings that ensure deep liquidity. Every 31 hours, Hyperliquid runs a Dutch auction where projects can bid at a certain price they’re comfortable with to have their token listed. This method reduces rug risk since there is a large upfront expense paid by the token deployer.

Knowing all of this, let’s look at some of the projects that have announced their launch alongside the HyperEVM. 👇

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HyperLend

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Hyperlend is a borrowing and lending platform that is native to the HyperLiquid ecosystem. They have three different types of lending and borrowing pools: core pools, isolated pools, and peer-to-peer pools. 

What sets HyperLend apart from traditional borrowing and lending platforms is that users can use their HyperLiquidity Provider (HLP) as collateral. This unlocks another level of utility for the token, on top of receiving rewards from HyperLiquid’s perpetuals platform.

Kinetiq

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Kinetiq is a liquid staking protocol where users can deposit their HYPE and receive a liquid staking version of it, kHYPE. Kinetiq then takes the HYPE they receive from users and distributes it to validators.

Kinetiq doesn’t just distribute the HYPE evenly among validators, though; they have a scoring system. This is to ensure that validators are online and functioning correctly. If validators were to not meet Kinetiq’s standards, they may lose the HYPE delegated to them, which would then be delegated to a different validator.

Silhouette

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The upcoming Silhouette is a decentralized trading environment that enables private trade execution on Hyperliquid while remaining integrated with the chain’s liquidity engine. By leveraging cutting-edge privacy technologies such as Fully Homomorphic Encryption (FHE) and secure Multi-Party Computation (sMPC), Silhouette ensures that trade details remain confidential while still being processed efficiently onchain.

Unlike traditional DEXs and Hyperliquid currently, where orders are publicly visible before execution, Silhouette uses a hidden matching engine that prevents frontrunning, MEV attacks, and information leakage. This allows traders to protect their strategies, which is particularly attractive to those moving large volume on exchanges. Thus, rather than replacing transparent DEXs, Silhouette provides an alternative execution venue where traders can shield their order flow from market observers while still benefiting from competitive pricing and high liquidity.

Felix

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Built on the Liquity v2 codebase, Felix is a stablecoin protocol that distributes the feUSD over-collateralized stablecoin. Once HyperEVM goes live, users can deposit Hyperliquid assets such as HYPE or PURR, as well as BTC, ETH, and SOL, as collateral to mint feUSD, which can be used in DeFi across the chain.

Felix maintains its peg through a redemption mechanism, allowing users to exchange feUSD directly for $1 worth of collateral. If feUSD trades below peg, arbitrageurs can redeem it for collateral, reducing supply and restoring its value. Felix offers Stability Pool Vaults, where users can deposit feUSD to earn yield and profit from liquidations. When a borrower’s position is liquidated, feUSD in the pool is burned to cover the debt, and depositors receive a share of the liquidated collateral. This process helps keep the system stable while rewarding those who provide capital. Overall, Felix can offer an efficient, decentralized collateral-backed stablecoin, bringing a foundational element of DeFi to the Hyperliquid ecosystem.

Just the Beginning of HyperEVM

While the four projects highlighted here give a snapshot of what the Hyperliquid ecosystem is gearing up for, they only scratch the surface of the broader wave of dApps lined up for HyperEVM. 

The huge trading volume on the chain — averaging billions daily — illustrates both the strength of Hyperliquid’s user base and potential developer opportunity. By pairing a performant consensus mechanism, built-in liquidity pipelines, and a practical approach to token listings, HyperEVM is poised to build out Hyperliquid into a fully-fledged ecosystem, much larger than what we see now.

If new applications can harness Hyperliquid’s architecture, the forthcoming launch may do more than bolster the single platform — it could reshape the future of onchain trading and DeFi as a whole.