Felix Protocol

A significant arbitrage opportunity has emerged for GameStop (GME) traders across decentralized platforms. **The Setup:** - GME funding rate on Hyperliquid has reached 111% - Traders can execute a delta-neutral strategy for 55.5% APY - Strategy involves buying spot GME on Felix and shorting GME perpetuals on Hyperliquid **How It Works:** The arbitrage exploits the difference between spot and perpetual futures markets. By holding both positions simultaneously, traders can capture the funding rate payments while remaining market-neutral. **Platform Details:** - Spot GME trading available on [Felix](https://www.usefelix.xyz/trade/spot-equities/GME) - Perpetual futures shorting on Hyperliquid - Similar opportunities previously appeared with AMD at 74% APY This represents a notable yield opportunity in the current DeFi landscape, though traders should consider execution costs, liquidation risks, and platform-specific factors before deploying capital.

Felix has relaunched **USDH incentives**, now targeting borrowers rather than lenders. **Key Details:** - Incentives available for USDH borrowed against **kHYPE, HYPE, and UBTC** collateral - All three assets offer **77% maximum loan-to-value (LTV)** ratios - Designed to reduce borrowing costs for traders using USDH in HIP-3 markets **Context:** This marks a shift from December's strategy, which focused on lending incentives and saw USDH Flagship vault reach $14.6m in deposits. The new approach aims to support traders holding spot assets who want to borrow USDH for trading. Borrow USDH at [Felix](https://www.usefelix.xyz/vanilla/borrow). Updates will be shared in the Felix Discord.

Felix is integrating with Ondo Global Markets to offer onchain spot equity trading. The platform will launch with access to **100+ US stocks** through trade.usefelix.xyz, expanding to 1,000+ equities in coming months. **Key features:** - Trade spot equities onchain with traditional finance-level liquidity - 24/5 trading availability - Multi-million dollar order execution from day one - Future ability to borrow against spot equity holdings Unlike previous onchain equity products limited by AMM liquidity constraints, Felix's implementation with Ondo provides institutional-grade execution. Ondo Global Markets maintains publicly audited holdings demonstrating overcollateralization, daily attestations, bankruptcy-remote legal structure, insurance fund, and multiple smart contract audits. The partnership builds on Ondo's existing infrastructure for tokenized stocks and ETFs, which uses Chainlink as its oracle platform for price data.

**GOLD-USDH perpetual futures** are now live on Hyperliquid, deployed by the Felix team through HIP-3. **Key Features:** - **20x maximum leverage** (higher than PAXG-USDC) - **$2M USD open interest cap** initially - **Lower fees** due to USDH discounts - **Improved pricing** sourced from deeper off-chain liquidity venues The market follows standardized commodity perps with on-hours and off-hours pricing. This offers better hedging access for market makers compared to relying solely on spot PAXG pricing. [Trade GOLD-USDH](https://trade.usefelix.xyz/flx:GOLD) | [View Documentation](http://usefelix.gitbook.io/perps)

Felix has launched a major **5x increase in USDH incentives** to accelerate adoption of Hyperliquid's native stablecoin over the next month. **Key Details:** - Users earn rewards by lending USDH to Felix's Flagship or Frontier vaults - USDH Flagship: $14.6M deposits, lends to HYPE, kHYPE, UBTC with 62.5-77% max LTV - USDH Frontier: New vault lending to HYPE, kHYPE, wstHYPE at 77% max LTV - Future incentives may extend to borrowers **Strategic Impact:** Growing USDH adoption drives **HYPE token buybacks** and enables cheaper trading on Hyperliquid through native stablecoin benefits for USDH pairs. This follows Felix's recent USDC incentive program, which offered supply APYs of 6.95% (Flagship) and 105.3% (Frontier). [View campaign details](https://app.merkl.xyz/?search=usdh&action=LEND&a)

**Felix Vanilla** has launched its first round of **USDH lending incentives**, offering significantly higher returns for USDH suppliers. **Key Details:** - USDH lenders now earn **borrower interest + USDH incentives** - Current APR jumps from **3.54% to 25.74%** with incentives - Rates will normalize as more lenders participate and vault expands **How It Works:** - Unlike previous USDC incentives for borrowers, these target USDH lenders - Simply supply USDH to start earning enhanced returns - Campaign details available through [Merkl](https://app.merkl.xyz/opportunities/hyperevm/MORPHOVAULT/0x207ccaE51Ad2E1C240C4Ab4c94b670D438d2201C) This follows Felix's earlier USDC borrower incentives launched in November, expanding their reward programs across different user segments.

**COIN-USDH perpetual futures** are now available for trading on Hyperliquid, deployed by the Felix team through HIP-3. **Key Trading Parameters:** - Maximum leverage: **3x** - Open interest cap: **$2M USD** initial limit - Follows standardized equity pricing for market hours **Fee Benefits:** All Felix HIP-3 markets now feature **reduced trading fees** through Growth Mode, providing cost savings for traders. **Recent Expansion:** This follows the launch of CRCL-USDH perps and TSLA-USDH futures, showing Felix's continued expansion of equity trading on decentralized platforms. [Trade COIN perps](https://app.hyperliquid.xyz/trade/flx:COIN) | [View documentation](http://usefelix.gitbook.io/perps)

**Felix HIP-3 markets have entered growth mode**, slashing fees by 90% to bootstrap adoption. - Growth mode **stacks with existing discounts** like stablecoin collateral benefits and staking rewards - @tradexyz enabled the feature for perpetual assets, **reducing baseline taker fees to just 0.009%** - The mechanism helps **novel markets gain traction** by making trading significantly cheaper This fee reduction represents a major incentive for traders to explore new HIP-3 markets while they establish liquidity.

**Felix officially joins Morpho Labs** as curator for Hyperliquid integration. **Key developments:** - Felix Vanilla launched in May 2025, scaling to hundreds of millions in supply and borrows - HyperEVM now supported on Morpho App interface - Users can access Felix Vaults directly through Morpho - Partnership marks larger acceleration into Hyperliquid ecosystem **Growth metrics:** - Over $600M total deposits on HyperEVM - Felix managing $180M+ under curation - Infrastructure-only deployment proved successful The collaboration leverages Morpho's established codebase while expanding access to Hyperliquid-based lending and borrowing services. [Read full announcement](https://forum.morpho.org/t/introducing-felix-vaults/2047)

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