HyperLend

**HyperLend has surpassed $100 million in USDC deposits**, marking continued growth while the broader DeFi lending market contracts. - DeFi lending deposits fell 25% in Q2 2026, the third consecutive quarter of decline - HyperLend's total deposits grew 34.6% to $672.7M in Q2 - The platform's USDC deposits specifically crossed the $100M milestone on July 23 - This follows steady growth from $1M in USDC deposits on Morpho in January HyperLend demonstrates resilience with double-digit growth across multiple metrics while competitors face bearish conditions. The platform's performance suggests users are consolidating funds into protocols they view as more reliable during market uncertainty.

**HyperLend is shutting down its USR market on August 10, 2026**, following the end of the USR recovery process in late August. The protocol will forcefully liquidate two borrowers with over 100 USR borrowed if they fail to repay by the deadline. Total USR debt on the platform is under $2,000, with no loans backed by it, presenting minimal protocol risk. **Key details:** - Liquidations will execute at $0.50 USD per USR (above market price) - Two affected wallets: 0x95388a9c868c8a68fe81dee7c2a9b556ec6fa5a8 and 0xfe904ae4a2dfcca42c50607a254ec33d6926cf29 - Remaining debt under $10 will be covered by HyperLend treasury - Liquidations may trigger taxable events depending on jurisdiction **For USR suppliers:** No immediate action required. While market utilization is at 100%, users can swap to USR using the [Escape Hatch function](https://app.hyperlend.finance/markets/0x0aD339d66BF4AeD5ce31c64Bc37B3244b6394A77). Withdrawals will be available after liquidations complete. Affected borrowers are advised to repay positions before the August 10 deadline to avoid forced liquidation.

HyperLend has introduced a Veto Council as an additional security layer for its protocol. **Key Details:** - The Council comprises partners, investors, and Hyperliquid community members - Functions as a protective backstop with authority to cancel queued multisig transactions - Designed to prevent unauthorized actions if Core Team accounts are compromised - Part of HyperLend's ongoing security enhancement efforts The move follows similar governance structures in DeFi, such as Scroll's recent Security Council launch, which operates a 9/12 multisig for protocol oversight.

**HyperLend's Stake & Save Program: Q1 Results** After three months, HyperLend's Stake & Save program has distributed over $40,000 in borrow rebates to users. This represents 18% of total protocol revenue during the period. **Key Metrics:** - Average annualized return: 11.6% APR across all staked HPL - Top performer: One user achieved ~4480% APR by staking early and maintaining a large borrow position - HPL token designed to grow alongside borrowing demand on the platform The program allows borrowers to stake HPL tokens and receive fee rebates, effectively reducing their borrowing costs. Rebates scale with the amount of HPL staked, with some users able to borrow against HYPE at near-zero rates. HyperLend plans to expand borrowing opportunities using this mechanism throughout the year.

Aviya, a compliance-gated credit venue, has launched on Hyperliquid to provide structured credit access for institutional participants. **Key Features:** - Facilitates bilateral, fixed-rate financing against HYPE collateral - Offers a controlled alternative to permissionless lending while maintaining on-chain efficiency - Plans to expand into additional asset classes including tokenized equities, commodities, and fixed-income instruments **Strategic Vision:** Aviya is positioned as a core component of HyperLend, serving as the credit layer for the Hyperliquid ecosystem. The platform aims to enable capital formation and structured financing across both native and future tokenized assets. The launch deepens collaboration with [Hyperion DeFi](https://twitter.com/HyperionDeFi) on institutional business development and capital formation, building on their March 2026 partnership that introduced compliance-gated private pools for large-scale entities.

Hyperliquid has deployed a new trading market pairing HPL with USDC as USDH gradually phases out its deployment. **Key Changes:** - Most HPL liquidity is being transferred to the new HPL/USDC market - This market now offers the deepest liquidity for HPL trading - The existing HPL/USDH market will remain operational for now - Full liquidity support will gradually transition to the USDC pair The move reflects the broader shift away from USDH while maintaining trading continuity for HPL holders. Traders can access the new market at [app.hyperliquid.xyz/trade/HPL/USDC](https://app.hyperliquid.xyz/trade/HPL/USDC).

**HyperLend is discontinuing USDH borrowing and lending** following USDH's announcement to wind down operations on Hyperliquid. **Key Timeline:** - Within 48 hours: Users will no longer be able to supply or borrow USDH on HyperLend - The market will eventually close completely **What Users Should Do:** - Repay any outstanding USDH loans proactively - Consider swapping USDH for USDC on the HyperCore spot orderbook - Zero-fee redemption options available at [USDH.com](http://USDH.com) **Other Platforms:** - Felix USDH-denominated HIP-3 markets remain active for now - USDH deposits on Felix Vanilla unchanged - Timeline for USDH Frontier and Flagship vault sunsets coming soon HyperLend thanked Native Markets for their contributions to the Hyperliquid ecosystem.

HyperLend has completed its upgrade to Aave v3.6 following an agreement with the Aave DAO. **Key Updates:** - Enhanced e-mode functionality for increased user optionality - Multiple security hardening measures implemented - Protocol resilience improved **Security Process:** - Two independent audits conducted (Pashov Audit Group and additional auditor) - Partnership with Block Analitica for ongoing safety monitoring - 7-day timelock and review period instituted - $250k mainnet bug bounty program activated during review The upgrade builds on recent LTV adjustments that improved borrowing rates for HYPE, USDC, kHYPE, and uBTC.

HyperLend has launched HPL token staking as part of its credit layer infrastructure on Hyperliquid. **Key Features:** - **Stake and Save** - A fee rebate product that reduces borrowing costs for users - Rebates scale progressively based on the amount of HPL tokens staked - Larger borrows generate larger savings, up to a defined ceiling - Initial parameters allow users to borrow against HYPE at near-zero rates The staking mechanism aims to position HyperLend as Hyperliquid's primary credit layer by offering competitive borrow rates. This represents the first utility implementation for the HPL token, which was announced in January 2026. The fee rebate structure creates an incentive for users to stake HPL tokens while borrowing, effectively lowering their cost of capital through the platform.

Hyperliquid has paired HPL with USDH to reduce trading costs on the platform. **Key Details:** - The pairing aims to provide the **lowest possible trading fees** for HPL transactions - Operates under the Aligned Quote Asset (AQA) framework - Yield generated by USDH flows to the Assistance Fund **Context:** This follows Hyperliquid's August 2025 activation of multi-quote asset spot trading, which allowed base assets to pair with various quote assets beyond the original options. More information: [AQA Documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/hypercore/aligned-quote-assets)