Six strategies, plain English.

What it does

Buys the underlying on the spot orderbook and shorts the same notional on the perp. Net market exposure is approximately zero. The strategy earns whatever funding longs are paying shorts on the perpetual contract — historically positive most of the time.

When it works

Funding rates run consistently positive, which happens whenever speculative long demand outpaces short demand. In bull markets this can be 30-100% APY; in chop, 5-15%.

What breaks it

Funding can flip negative for extended periods (DN strategies pay then). The hedge can drift if spot/perp prices diverge. Liquidity crunches on either leg force unfavourable rebalances.

Ideal LP profile

Looking for crypto-native yield without crypto-native price risk. Comfortable with smart-contract + funding-flip risk. Patient — the strategy compounds quietly.

What it does

Supplies USDC into approved money markets (HyperLend, Felix, etc) and rotates capital to the highest-yielding pool every few hours. The vault collects supply APY net of fees.

When it works

Borrow demand is consistent. Always works at some yield level. Higher when leverage demand is up.

What breaks it

A money-market exploit (smart-contract bug, oracle manipulation) on the active pool. Mitigated by keeping the allowlist small and audited. Idle USDC drag if no pool is offering acceptable APY.

Ideal LP profile

Yield-seeking allocator who wants USDC-denominated returns with minimal complexity. Low risk tolerance. Treats this as the cash leg of a barbell allocation.

What it does

Bridges USDC to HyperCore on deposit and invests in HLP, Hyperliquid's in-house market-making vault. HLP earns market-maker rebates + funding on the perp orderbook. Vault settles redemptions through HLP's own queue.

When it works

Healthy trading volume on Hyperliquid perps. Higher in volatile + liquidation-heavy markets when MM PnL spikes.

What breaks it

A directional move in the wrong direction while HLP's inventory is mis-positioned. Liquidity crisis triggers HLP queue extension. Inherits whatever HLP-level risks Hyperliquid carries.

Ideal LP profile

Wants exposure to the HL ecosystem alpha without managing positions. Comfortable with a 4-day redemption SLA and HL-side risk.

What it does

Holds a target-weighted basket (e.g. 40% BTC / 30% ETH / 18% SOL / 12% HYPE). Auto-rebalances when any component drifts more than ±3pp from target — implicit "buy the dip, sell the rip" alpha on the rebalance schedule.

When it works

Crypto markets trend up. Underperforms cash in drawdowns. The rebalance alpha is small (1-3% annualised) on top of the basket's beta.

What breaks it

Crypto bear markets. Sharp single-asset drawdowns mid-rebalance can lock in losses. Concentration risk if the basket is over-weighted in any one asset.

Ideal LP profile

Long-biased, accepts crypto market beta. Wants a single token instead of managing wallets across assets. Long horizon (12-month+).

What it does

Provides liquidity in a tight price range (typically ±5% of mid). Earns swap fees while price stays in band; auto-recenters and compounds when price exits. Tracks fees and impermanent loss separately.

When it works

High swap volume in choppy / range-bound markets. Trader churn pays the LP. Best in narrow asset pairs with frequent two-sided flow.

What breaks it

Strong directional trends — IL grows quadratically with price moves out of range. Re-centering can lock in IL. Low volume periods erode the fee buffer.

Ideal LP profile

Sophisticated LP who understands IL math and is comfortable with re-centering trades. Monitors range positioning.

What it does

Supplies an asset (e.g. wstETH) into a money market, borrows USDC against it, swaps the USDC back to more wstETH, and repeats. Net effect: levered exposure to the supply-borrow APY spread.

When it works

Supply APY > borrow APY by a healthy margin, and the underlying asset isn't crashing. 3-5× leverage typical.

What breaks it

A crash in the collateral asset triggers liquidation. The keeper deleverages emergency-style if the health factor drops to 1.20. Spread compression makes the loop unprofitable.

Ideal LP profile

High-conviction yield seeker who understands liquidation mechanics. Tolerant of forced de-leveraging. Likely an experienced DeFi user.