Author: @castle_labs
Compiled by: zhouzhou, BlockBeats
Editor's note: This article introduces several DeFi protocols in the HyperEVM ecosystem, covering opportunities such as staking, liquidity mining, and airdrop rewards from protocols including Felix, Mizu Labs, Drip.Trade, HyperSwap, etc. By participating in these protocols, users can gain multiple revenues and ecosystem points, and potentially gain future token allocations. The HyperEVM ecosystem shows immense potential, with early activities undervalued, providing a second chance for those who missed the first wave of airdrops.
The following is the original content (original content has been edited for readability):
Unless you have 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 significant wealth while keeping the entire ecosystem growing.
While most traders focus on perpetual contract layers, which 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. And the real opportunities lie here.
Castle has covered the core aspects of Hyperliquid in this analysis:
This guide will delve into the mining gameplay forming around HyperEVM, including its evolution, who is most likely to receive rewards, and how to position oneself in the early stages.
What 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 was issued at $3.20 and peaked at $34. This airdrop was worth over $10.5 billion at its peak, marking one of the largest wealth transfers in crypto history.
Current opportunities are enormous 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 ecosystem remains thin, and this is often the best time to capture the maximum yields. Hyperliquid has thus far allocated 31% of its total supply, with another 39% still unallocated. At current valuations, this means nearly $4 billion of $HYPE could be distributed to future participants.
And it's 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 potentially stack with future ecosystem incentives.
The market has not fully reacted yet. Overall participation is still low, attention is scattered, and few can lay out precise strategies. If this cycle unfolds according to the logic of the previous one, the earliest and most active participants will reap the greatest rewards.
So, who is most likely to benefit next?
From Hyperliquid's history and current state, there are several key groups worth focusing on:
Maintain stable trading volume, consistently active perpetual contract traders
Users holding Hyperliquid native NFTs
Protocol farmers engaging in HyperEVM protocols (lending, providing liquidity, borrowing, etc.)
Considering this, here are the top 10 mining opportunities worth focusing on in the current Hyperliquid ecosystem.
1.KittenSwap - A ve(3,3) model DEX for HyperEVM - @kittenswaphype
KittenSwap is the flagship DeX on HyperEVM, adopting a ve(3,3) model similar to Velodrome and Solidly. It supports stablecoin and volatile token trading pairs and rewards long-term users through fee dividends, point programs, and governance mechanisms.
As the DEX with the largest transaction volume and TVL in the ecosystem, KittenSwap is the core hub of liquidity in HyperEVM. Many new protocols opt to launch tokens or create stablecoin trading pairs here.
KittenSwap recently launched a centralized liquidity pool that allows custom price ranges and temporarily increased point multiplier rewards. Some trading pairs can currently earn up to 20 times the point rewards (e.g., LHYPE/HYPE and USDXL/HYPE), while the standard pool multipliers have decreased. This indicates that the protocol will tend 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, where rewards are diluted.
Stake LP tokens to earn points - after adding liquidity, stake the LP tokens on KittenSwap for points. Points are updated weekly and determine your allocation share in future token distributions.
Use MechaCats NFT to enhance rewards - holding MechaCats NFT can earn point bonuses:
1-9 NFTs = 1.25 times
100-199 = 1.4 times
Over 500 = 1.5 times
MechaCats holders will also secure a 3% share of veKITTEN supply when the token launches.
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 asset.
The protocol invests its revenues 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 up USDXL for other yield opportunities.
· Add borrowed USDXL to liquidity pools
Pair 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 typically receive the best rewards, even when points are not yet displayed. The platform tracks user behavior in the background, including borrowing, adding liquidity, or transferring USDXL, all of which may participate in multiple incentive activities.
The current points system is live and regularly updated, making it one of the simplest mining strategies on HyperEVM.
3.HyperLend - Lending infrastructure, point system is 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, throughout the ecosystem.
The public points program will launch on April 7, 2025, featuring weekly rewards and an XP-based compounding system.
Points are related to borrowing, daily active behaviors, and social recommendations, automatically displayed on the wallet dashboard without manual claiming.
Mining strategies
· Deposit assets early
Immediately deposit assets like HYPE, LHYPE, or USDXL when the new cycle 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 weights, even small positions can help.
You can collateralize HYPE or LHYPE to borrow stablecoins while retaining spot exposure.
· Start daily XP cycle
Users holding ≥100 points and depositing assets ≥$50 can claim XP daily.
XP will compound over a week, eventually converting to additional points.
· Activate all available bonuses
Testnet participants will receive permanent point multipliers.
Users holding @HypioHL NFTs will receive additional points (NFTs featuring HyperLend will have higher bonuses).
The social referral system opens 13 layers of invitation relationships, earning additional points based on the inviter's performance.
· Stack earnings from other protocols
USDXL or LHYPE borrowed from HyperLend can be added to @KittenSwaphype or @HypurrFi for multi-protocol point stacking. You can also deposit the newly launched uBTC, which earns 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 entry timing, collect 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 paths: stake feUSD in stable pools for liquidation rewards, or use feUSD in various liquidity pools to earn additional points.
As the foundational module of DeFi, the Felix protocol helps users leverage, take on risk, 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 throughout the ecosystem.
· Stake feUSD in stable pools
These pools are used to support liquidation mechanisms.
Participants can acquire HYPE at a discount when their collateral position is liquidated and share in part of the protocol's earnings.
· Add liquidity on KittenSwap or HyperSwap
For example, trading pairs like feUSD/USDXL and feUSD/HYPE usually enjoy point bonuses from collaborative ecosystems.
· Focus on multi-protocol integration
Felix has integrated with HyperLend and is usable in Mizu's automated yield vault.
Using feUSD across multiple protocols may unlock stacking incentives.
Felix is a clean strategy that makes idle HYPE work, allowing users to enjoy multiple revenue paths from protocol rewards, liquidation bonuses, and ecosystem point distributions.
5.Mizu Labs - Automated HyperEVM mining tool
@MizuLabs is a yield aggregator in the HyperEVM ecosystem, focused on automated mining. It provides hypeETH and hypeBTC vaults (these two are liquidity wrapper tokens bridged from ETH and BTC) and deploys these assets into high-yield protocols such as HyperLend, HypurrFi, Felix, Harmonix, etc.
This protocol is ideal for users who wish to participate in HyperEVM mining but do not want to frequently rotate funds or manually track points. Mizu helps users automatically optimize yields, accumulate points, and consolidate rewards through a unified vault.
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 vault.
· Deposit hypeETH or hypeBTC into the Mizu vault
After depositing, Mizu will automatically deploy assets across multiple protocols to maximize yields and point acquisition.
· Earn stacking bonuses
Mizu vault can enjoy rewards from up to eight protocols simultaneously, including Hyperbeat, Harmonix, HypurrFi, Timeswap, and HyperLend. Royco Markets has also reserved a 1-2% distribution quota for Mizu users.
Mizu is a passive mining strategy suited for ETH/BTC holders, easily integrated into HyperEVM, multi-protocol yield stacking 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, @HypersonHL, etc. Most NFT projects on HyperEVM will launch here or use Drip for secondary liquidity trading.
Although an official token has not been launched yet, the website already has a 'Rewards' tab, and several series have hinted that active users and holders will receive future airdrops.
Mining strategies
· Purchase and hold key series
Start with Hypios (HyperLend's for bonuses), MechaCats (KittenSwap's multiplier rewards and 3% $KITTEN supply), and Hypers (Drip's flagship project). These series have historically secured whitelist positions and token allocations from collaborative protocols.
· Stay active
Trade, list, and delist regularly, as market activity may affect future airdrop eligibility.
7.Hyperbeat - @0xhyperbeat
@0xHyperBeat, as a validator and ecosystem fund, focuses on staking, yields, and long-term integration with Hyperliquid. Through vault deployments, it offers users exposure to various projects and, through Hearts (points) rewards, may lead to future token distributions.
As a way that does not require frequent fund rotation, HyperBeat simplifies the mining process for early protocols in HyperEVM.
Mining strategies
· Stake HYPE with HyperBeat validators
Accumulate Hearts over time, with rewards provided based on weekly snapshots.
· Deposit to the vault via Royco Markets
Choose one of the following options:
HyperETH vault for ETH → Exposure to 15+ collaborative protocol tokens
HyperBTC vault for BTC
HyperUSD vault for stablecoins (over $11 million TVL)
· Earn stacking rewards
One deposit can earn Hearts and points from collaborative protocols like HyperLend, HypurrFi, Harmonix, Timeswap, Silhouette, etc.
· No active mining required
Funds are automatically routed, and rewards will automatically track as new protocols join.
Hyperbeat is a passive mining method that combines validator staking with multi-protocol vaults, requiring only one setup for users to mine on HyperEVM.
8.HyperSwap - A low-slippage DEX with deep ecosystem integration @hyperswapx
@HyperSwapX acts as a low-slippage AMM on HyperEVM, positioned as a lightweight, streamlined alternative to KittenSwap, optimizing for fast execution, low TVL mining, and ecosystem partner activities.
The active points program of the protocol distributes 2.5 million points over 5 weeks (500,000 per week), which are allocated through usage, LP provision, and integration with over 20 collaborative protocols. The snapshot time each week is 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 the size, duration, and trading volume of the pools; the longer the staking time, the larger the share earned.
Trade regularly
Trade weekly on HyperSwap, especially in collaborative token pools, to earn activity-based points.
Digging ecological pools
Certain trading pairs offer additional rewards: USDXL, feUSD, KEI, LHYPE, stHYPE, uBTC/uETH. Providing liquidity to these pools will simultaneously earn points from both HyperSwap and collaborative 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 provisions.
HyperSwap is very suitable for small LPs and cross-protocol farmers. With its reward mechanism based solely on usage, devoid of 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 integrate with top protocols on HyperEVM. Looped HYPE has also launched a structured early user program, allocating 7% of its total token supply to those who mint and hold LHYPE, supporting use in DeFi positions.
Mining strategies
Mint LHYPE on the official website, avoiding exchanges. Only direct minters or those using supported integrations are eligible to participate in the early user program.
Participate in the second phase (live now)
Quota: 3% of total token supply
Limit: 2M HYPE
Hold LHYPE for ≥8 weeks
Hold LHYPE at the following locations: native wallet, AMM pools (KittenSwap, HyperSwap, Laminar), or lending protocols (Felix, Timeswap).
Provide liquidity to LHYPE in the ecosystem
@KittenswapHype centralized pool offers 20 times the multiplier reward. HyperSwap incorporates LHYPE into its points program. Holding LHYPE also counts towards activities on Mizu, Harmonix, and HypurrFi.
No active management required
Once deployed to DeFi, LHYPE will continue rebasing and automatically mine across layers.
$HYPE staking
Staking $HYPE on Hyperliquid is a low-effort way to earn yields and potentially qualify for future Hyperliquid and its collaborative protocol 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 Hyperliquid staking page
· Transfer $HYPE from spot account to 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 involved and earn rewards through holding.
Conclusions and Thoughts
This article covers existing and relevant core protocols in the Hyperliquid ecosystem, but far from all that is happening. Currently, dozens of new protocols are being built on HyperEVM, many of which show potential, while others are seeking positioning. Due to space constraints, we focused on those with active rewards and meaningful progress. But this momentum is spreading rapidly.
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 poised to follow a similar trajectory.
There is ample reason to assert that early activities currently in the HyperEVM ecosystem are significantly undervalued relative to future potential. The protocols mentioned in this article represent the core infrastructure that could become important DeFi environments, and early participants are likely to receive substantial token allocations.
For those who missed the first Hyperliquid airdrop, the emerging ecosystem offers a rare second chance, this time with clearer directions on which activities are most important.