Author: @castle_labs
Compiled by: zhouzhou, BlockBeats
Editor's note: This article introduces multiple DeFi protocols in the HyperEVM ecosystem, covering opportunities for staking, liquidity mining, and airdrop rewards provided by protocols such as Felix, Mizu Labs, Drip.Trade, HyperSwap, etc. By participating in these protocols, users can gain multiple yields and ecological points, with the potential for future token distributions. The HyperEVM ecosystem shows tremendous potential, and the value of early activity is underestimated, providing a second chance for those who missed the first wave of airdrops.
The following is the original content (for better readability, the original content has been edited):
Unless you've completely detached from the crypto space, you must have noticed: Hyperliquid is everywhere. It is one of the few projects that executed TGE strategies precisely, creating substantial wealth and maintaining growth momentum across the entire ecosystem.
While most traders focus on perpetual contract layers, which have indeed found product-market fit and built one of the most active 'cult communities' in crypto, the application layer expanding around HyperEVM is often overlooked. The real opportunity lies here.
Castle has covered the core content of Hyperliquid in this analysis:
This guide will delve into the mining gameplay forming around HyperEVM, including its evolutionary process, who is most likely to receive rewards, and how to position oneself in advance during this early stage.
What has happened, and what comes next?
@hyperliquidx's first airdrop in November 2024 became a historic event, distributing 31% of its total tokens to over 90,000 users. The token issuance price was $3.20, peaking at $34. This airdrop was valued at over $10.5 billion at its peak, making it one of the largest wealth transfers in crypto history.
Current opportunities are vast and still in the early stages. HyperEVM is live, core protocols are operational, and various point systems are incentivizing user behavior.
The liquidity across the entire ecosystem remains thin, which is often the best time to capture maximum returns. Hyperliquid has so far allocated 31% of its total supply, with another 39% still unallocated. At current valuations, this means there is nearly $4 billion of $HYPE that could be distributed to future participants.
And this is not just about $HYPE itself. Native protocols like @KittenswapHype, @HyperLendx, and @HypurrFi are also conducting their own point activities, which can earn rewards now and may compound with future ecological incentives.
The market has not fully reacted yet. Overall participation remains low, attention is scattered, and there are not many who can position accurately. If this cycle unfolds according to the logic of the previous cycle, the earliest and most active participants will reap the greatest rewards.
So who is most likely to benefit next?
Based on the history and current state of Hyperliquid, several key demographics are worth focusing on:
Maintain stable trading volumes, continuously active perpetual contract traders
Users holding Hyperliquid native NFTs
Participants in HyperEVM protocols (lending, providing liquidity, borrowing, etc.) are 'protocol farmers'
Considering this, here are the top 10 mining opportunities currently worth focusing on in the Hyperliquid ecosystem.
1.KittenSwap – ve(3,3) model DEX for HyperEVM - @kittenswaphype
KittenSwap is the main DeX on HyperEVM, adopting a ve(3,3) model similar to Velodrome and Solidly. It supports trading pairs of stablecoins and volatile tokens, rewarding long-term users through fee dividends, point programs, and governance mechanisms.
As the DEX with the largest trading volume and TVL in the ecosystem, KittenSwap is the core hub of liquidity in HyperEVM. Many new protocols choose to launch tokens or create stablecoin trading pairs here.
KittenSwap recently launched a centralized liquidity pool, allowing customized price ranges and temporarily increased point multiplier rewards. Some trading pairs currently offer up to 20 times point rewards (such as LHYPE/HYPE and USDXL/HYPE), while the standard pool multipliers have been reduced. This indicates that the protocol will be more inclined to support centralized liquidity in the future.
Mining strategies
Add liquidity to high-yield pools - focus on pools with high multipliers, such as PURR/HYPE, LHYPE/HYPE, and USDXL. Avoid pools with excessively high total locked amounts, as rewards may be diluted.
Stake LP tokens to earn points - after adding liquidity, stake LP tokens on KittenSwap to earn points. Points are updated weekly and determine your allocation share in future token distributions.
Use MechaCats NFTs to boost rewards - holding MechaCats NFTs can earn you point bonuses:
1–9 NFTs = 1.25x
100–199 = 1.4x
Over 500 = 1.5x
MechaCats holders will also ensure they receive 3% of the veKITTEN supply share when the token goes live.
2.HypurrFi – Leveraged lending and stablecoin yields - @hypurrfi
@HypurrFi is a leveraged lending platform on HyperEVM and the issuer of the native over-collateralized stablecoin USDXL. Users can borrow USDXL by collateralizing $HYPE or stHYPE while still earning interest on the collateralized assets.
The protocol invests its income into tokenized U.S. Treasury reserves to enhance the long-term stability and asset backing of USDXL.
Mining strategies
· Deposit $HYPE → Borrow USDXL
The simplest mining method: retain exposure to HYPE while freeing USDXL for other yield opportunities.
· Add borrowed USDXL to liquidity pools
Can be paired with HYPE, LHYPE, or feUSD on KittenSwap or HyperSwap to earn high multiplier point rewards.
· Hold or lend USDXL
Simply holding or lending USDXL may also yield future rewards from the protocol or ecosystem.
According to HypurrFi, early users usually receive the best rewards, even when points are not displayed at the time. The platform tracks user behavior in the background, including lending, adding liquidity, or transferring USDXL, all of which may participate in multiple incentive activities.
The current point system is live and updated regularly, making it one of the simplest mining strategies to operate on HyperEVM.
3.HyperLend - Lending infrastructure, point system now live - @hyperlendx
@HyperLendx is the main lending protocol on HyperEVM, supporting core assets like HYPE, stHYPE, LHYPE, and USDXL. It is not only an independent currency market but also provides liquidity foundations for other protocols including @Harmonixfi, @Mizulabs, and @Felixprotocol across the entire ecosystem.
The public point program will go live on April 7, 2025, including weekly rewards and a compound system based on XP.
Points are related to lending, daily active behaviors, and social referrals, automatically displayed on the wallet dashboard without manual claiming.
Mining strategies
· Deposit assets early
Deposit assets like HYPE, LHYPE, or USDXL immediately when a new round begins.
The protocol has a TVL cap, the later you enter, the more points decrease.
· Borrow to increase point weight
Lending operations can enhance reward weight, even small positions help.
You can borrow stablecoins by collateralizing HYPE or LHYPE while retaining spot exposure.
· Activate XP daily loop
Holders of ≥100 points and deposits ≥$50 can claim XP daily.
XP will compound over a week, eventually converting into additional points.
· Activate all available bonuses
Testnet participants will receive permanent point multipliers.
Users holding @HypioHL NFTs will earn additional points (NFTs with HyperLend features will have higher multipliers).
The social referral system opens 13 layers of invite relationships, earning additional points based on the performance of the inviter.
· Stack yields from other protocols
USDXL or LHYPE borrowed from HyperLend can be added to @KittenSwaphype or @HypurrFi for multi-protocol point stacking. It can also be deposited into the newly launched uBTC, earning both HyperLend points and rewards from HyperUnit.
HyperLend is a 'deploy and observe' strategy, requiring only low-frequency operations once set up. The main task is to master the timing of entry, claim XP daily, and occasionally adjust positions based on reward changes.
4.Felix Protocol – Stablecoin yields + liquidation mining - @felixprotocol
@Felixprotocol is the first native stablecoin protocol on HyperEVM, allowing users to mint feUSD by collateralizing HYPE. It offers two main yield pathways: stake feUSD in a stable pool to earn liquidation rewards, or use feUSD in various liquidity pools to earn additional points.
As a foundational module of DeFi, the Felix protocol helps users achieve leverage, take on risks, and transfer funds between lending protocols and DEXs. Its point program will officially launch on April 13, 2025, at 12:00 PM UTC.
Mining strategies
· Collateralize HYPE → Mint feUSD
feUSD is an over-collateralized stablecoin designed for use across the entire ecosystem.
· Stake feUSD in a stable pool
These pools support the liquidation mechanism.
When collateral positions are liquidated, participants can acquire HYPE at a discount price and share in some of the protocol's profits.
· Add liquidity on KittenSwap or HyperSwap
For example, trading pairs like feUSD/USDXL and feUSD/HYPE usually enjoy point bonuses from cooperative ecosystems.
· Focus on multi-protocol integration
Felix has integrated with HyperLend and can be used in Mizu's automated yield treasury.
Using feUSD across multiple protocols may unlock stacking incentives.
Felix is a clean strategy that allows idle HYPE to work, enabling users to enjoy multiple yield pathways from protocol rewards, liquidation bonuses, and ecological point distributions.
5.Mizu Labs – Automated HyperEVM mining tool
@MizuLabs is a yield aggregator in the HyperEVM ecosystem, focusing on automated mining. It provides hypeETH and hypeBTC treasuries (these are liquidity-wrapped tokens after bridging ETH and BTC) and deploys these assets into high-yield protocols like HyperLend, HypurrFi, Felix, Harmonix, etc.
This protocol is ideal for users who want to participate in HyperEVM mining but do not want to frequently rotate funds or manually track points. Mizu automatically optimizes yields, accumulates points, and integrates rewards for users through a unified treasury.
Mining strategies
· Deposit ETH or BTC → Receive hypeETH or hypeBTC
Mizu provides guided bridging and wrapping processes; native assets must be converted to hypeETH/hypeBTC before entering the treasury.
· Deposit hypeETH or hypeBTC into the Mizu treasury
After depositing, Mizu will automatically deploy assets across multiple protocols to maximize yield and point acquisition.
· Earn stacking bonuses
The Mizu treasury can enjoy rewards from up to eight protocols simultaneously, including Hyperbeat, Harmonix, HypurrFi, Timeswap, and HyperLend. Royco Markets has also reserved 1-2% of various token distribution quotas for Mizu users.
Mizu is a passive mining strategy suitable for ETH/BTC holders, easily accessing HyperEVM, stacking multi-protocol yields without frequent operations.
6.Drip.Trade – Native NFT marketplace + future airdrop potential
@drip__trade is the main NFT marketplace on HyperEVM, hosting local series related to point bonuses, airdrops, and whitelists such as @HypioHL, MechaCats, and @HypersonHL. Most NFT projects on HyperEVM will launch here or use Drip for secondary liquidity trading.
Although the official token has not yet been launched, the site already has a 'rewards' tab, and multiple series have hinted that active users and holders will receive future airdrops.
Mining strategies
· Purchase and hold key series
Start with Hypios (for HyperLend boosts), MechaCats (multipliers from KittenSwap and 3% of $KITTEN supply), and Hypers (Drip's flagship project). These series have historically secured whitelist positions and token distributions from cooperative protocols.
· Stay active
Trade, list, and delist regularly, as market activity may affect future airdrop eligibility.
7.Hyperbeat - @0xhyperbeat
@0xHyperBeat, as a validator and ecological fund, focuses on staking, yield, and long-term integration with Hyperliquid. Through treasury deployment, it provides users with exposure to various projects and rewards through Hearts (points), which may lead to future token distributions.
As a way that does not require frequent fund rotations, HyperBeat simplifies the mining process for early protocols in HyperEVM.
Mining strategies
· Stake HYPE with HyperBeat validators
Accumulate Hearts over time, rewards are provided based on weekly snapshots.
· Deposit into the treasury through Royco Markets
Choose one of the following options:
HyperETH treasury is used for ETH → exposure to 15+ cooperative protocol tokens
HyperBTC treasury is for BTC
HyperUSD treasury is used for stablecoins (over $11 million in TVL)
· Earn stacking rewards
One deposit can earn Hearts and points from cooperative protocols like HyperLend, HypurrFi, Harmonix, Timeswap, Silhouette, etc.
· No active mining required
Funds automatically routed, rewards will automatically track as new protocols join.
Hyperbeat is a passive mining method that combines validator staking and multi-protocol treasury, allowing users to mine on HyperEVM with just one setup.
8.HyperSwap - Low-slippage DEX, deep ecological integration @hyperswapx
@HyperSwapX, as a low-slippage AMM on HyperEVM, is positioned as a lightweight, simplified alternative to KittenSwap, optimizing for fast execution, low TVL mining, and ecological partner activities.
The protocol's active point program distributes 2.5 million points over 5 weeks (500,000 per week), with points allocated through usage, LP provision, and integration with over 20 cooperative protocols. Weekly snapshot time is every Sunday at 10 PM PST.
Mining strategies
Provide liquidity and stake LP tokens
Provide liquidity on HyperSwap and directly stake LP tokens. Points are allocated based on pool size, duration, and trading volume; the longer the staking duration, the larger the share received.
Trade regularly
Trade weekly on HyperSwap, especially in cooperative token pools, to earn activity-based points.
Mining ecological pool
Certain trading pairs offer additional rewards: USDXL, feUSD, KEI, LHYPE, stHYPE, uBTC/uETH. Providing liquidity to these pools will simultaneously earn points from HyperSwap and cooperative protocols.
Earn through holding stacking bonuses
Users holding Hypio NFTs, Buddy tokens, CatCabal, PiP, etc., can earn points weekly if they are active on HyperSwap.
Referral system
Invite new users and earn 10% of the points they generate through their trades and LP provision.
HyperSwap is very suitable for small LPs and cross-protocol farmers. Due to its usage-based reward mechanism, without NFT or veToken mechanisms, it maintains simplicity and scalability.
9.Looped HYPE - @looped_hype
@Looped_HYPE wraps $HYPE into LHYPE, a rebasing token designed for passive leverage without liquidation or fee tracking. It can earn enhanced staking yields and integrates with top protocols on HyperEVM. Looped HYPE has also launched a structured early user program, allocating 7% of its total token supply to users who mint and hold LHYPE, supporting usage in DeFi positions.
Mining strategies
Mint LHYPE on the official website, avoiding exchanges. Only direct minters or those using through supported integrations are eligible to participate in the early user program.
Participate in the second phase (now live)
Quota: 3% of total token supply
Limit: 2M HYPE
Hold LHYPE for ≥8 weeks
Hold LHYPE in the following locations: native wallet, AMM pools (KittenSwap, HyperSwap, Laminar), or lending protocols (Felix, Timeswap).
Provide LHYPE liquidity in the ecosystem
@KittenswapHype's centralized pool offers 20 times multiplier rewards. HyperSwap includes LHYPE in its point program. Holding LHYPE also counts towards activities in Mizu, Harmonix, and HypurrFi.
No active management required
Once deployed into DeFi, LHYPE will continue to rebasing and automatically mine across layers.
$HYPE Staking
Staking $HYPE on Hyperliquid is a low-effort way to earn yields and may qualify for future Hyperliquid and its cooperative protocols' airdrops. Validators like HypurrCollective x Nansen have already secured multiple airdrops for their stakers, including:
SENT(SENTIIENTAI)-2120K allocated
TIME(TIMESWAP)-0.5 100K
These airdrops are usually distributed in tiers based on the amount staked.
Staking strategies
· Access the Hyperliquid staking page
· Transfer $HYPE from the spot account to the staking account
· Delegate to validators (e.g., HypurrCollective x Nansen)
· Earn staking rewards and unlock airdrop eligibility
If you are not participating in active mining, this is the simplest way to stay engaged and earn rewards through holding.
Conclusions and thoughts
This article covers existing and relevant core protocols in the Hyperliquid ecosystem, but far from covering everything that's happening. Currently, dozens of new protocols are being built on HyperEVM, many of which show potential, while some are still seeking positioning. Due to space constraints, we focused on protocols with active rewards and meaningful progress. But this momentum is rapidly spreading.
The most lucrative airdrops often do not announce themselves loudly. Hyperliquid has already demonstrated its commitment to early users through one of the largest token distributions.
Now, the entire ecosystem around HyperEVM looks likely to follow a similar trajectory.
There are ample reasons to assert that the early activities currently taking place in the HyperEVM ecosystem are significantly undervalued in relation to future potential. The protocols mentioned in this article represent the core infrastructure that may become a significant DeFi environment, and early participants are likely to receive substantial token distributions.
For those who missed the first Hyperliquid airdrop, the emerging ecosystem provides a rare second chance, this time with a clearer direction on which activities are most important.