Season 2: Scaling Hyperwave

Following 10 weeks of relentless building, Hyperwave’s first season is almost complete.

In this time, Hyperwave has grown to over $45 million in productive TVL, and made a meaningful start in helping Hyperliquid house all of finance.

Why so fast to launch the token? Because it isn’t the product. HWAVE is about community ownership, and the sooner it launches, the sooner the community can help shape Hyperwave’s growth.

Season 1 was centered on two assets that form the critical building blocks of Hyperwave's future vision:

Hyperwave HLP (hwHLP)

We launched the first and leading tokenized HLP in late June. Since then it has expanded to the hub of stablecoin liquidity—Ethereum—and become established as a core primitive with multiple integrations across HyperEVM and mainnet.

Hyperwave HYPE (hwHYPE)

The hwHYPE vault is designed to maximize HYPE yield, and has consistently achieved market-leading APRs since launching in early August.

With two foundational products in place, we are ready to launch HWAVE.

Season 2 will focus on further improving these products and leveraging the token as a tool to strengthen liquidity, while moving closer to realizing our larger vision.

Key milestones will include:

hwHLP CoreWriter upgrade

hwHLP will greatly reduce trust assumptions by transitioning to a fully Core Writer Compliant Architecture.

hwHLP liquidation paths

hwHLP will embed a novel atomic liquidation path for Borrow/Lend Markets. This will allow idle liquidity in hwHLP to be liquidated against, further derisking hwHLP as a collateral asset, and allowing it to modulate liquidity more efficiently and scale without reliance on mercenary LPs.

hwHYPE evolution

hwHYPE will continue to deliver market-leading HYPE yields. To achieve this, we will onboard more assets and strategies including Pendle PTs.

hwHLP expansion

HLP offers a differentiated, non-correlated source of yield—one that is independent of T-Bills or basis trades, and instead reflects trader speculation on both upside and downside via Hyperliquid.

Through tokenization with hwHLP, we can extend this yield to all DeFi ecosystems, attracting liquidity into Hyperliquid from across the space. In Season 2, our focus will be on embedding hwHLP as a native yield primitive for other ecosystems and scaling to all major EVM environments, including Arbitrum.

In parallel, we will expand institutionally by introducing hwHLP to institutional partners.

Deepening hwHLP liquidity

Depositing hwHLP as collateral and borrowing against it has been the major source of TVL for Hyperwave, with $10M on Euler (mainnet) and $5M on HypurrFi. In Season 2, we will make this more efficient, enabling users to leverage in and out of hwHLP efficiently without significant slippage.

To support this, all protocol revenue in Season 2 will be directed toward strengthening hwHLP market health and enabling Hyperwave’s TVL to scale into the hundreds of millions.

Thanks to hwHLP’s relative stability and the use of fundamental oracles from Pendle and HypurrFi across borrow/lend markets, we are targeting a 5% Liquidity-to-TVL ratio. For example, a $50M hwHLP position would require $2.5M in liquidity. Once this threshold is achieved, additional fees will be allocated to supplying stablecoins into core hwHLP borrow/lend markets. This will ensure cheaper leverage access for hwHLP holders.

With more scale, we then expect to reach a stage where protocol fees can be directed back to the HWAVE token in a meaningful and impactful way.

True to the Hyperliquid ethos, our long-term vision is to direct revenue back to the community.

The activation of the fee switch—which represents a mutual handshake of shared growth between hwHLP/hwHYPE users and Hyperwave— is a big step in this direction, and one that we are actively exploring.

More details on tokenomics will be shared ahead of TGE. Stay tuned.