HyperLiquid Ecosystem Decentralized Finance protocol Depth Evaluation, who is your best solution for "sleeping income"?

Original text from SMooTH

Compiled by｜Odaily Planet Daily Golem (@web3_golem)

To be honest, no one enters the crypto industry just to silently watch the balance in their wallet. We all hope for the growth of our wallet balance, and one of the lower-risk ways to achieve this is through DeFi. However, on HyperLiquid, DeFi is completely different.

Do you want to appreciate your funds? Do you want to engage in circular lending? Do you want to stake? Do you want to borrow against your principal as collateral, then stake while earning points? If you do, welcome to experience the true engine of DeFi on HyperLiquid: yield protocols, lending platforms, liquidity staking layers, and automated vaults.

They may not be the coolest applications, but this is exactly where your funds can truly appreciate—whether you're sleeping, trading, or posting on Twitter.

Some of these protocols have existed since the birth of HyperEVM, while others have just started. All these protocols are built in the rapidly evolving native environment of HyperEVM, which will have a profound impact on the development of DeFi on HyperLiquid.

This article provides a comprehensive analysis of these protocols based on practicality, popularity, and relevance to help you identify areas worthy of investment and attention. (The ranking is based on a comprehensive consideration of factors such as potential, relevance, trading volume, user awareness, and overall ecosystem impact.)

S-Class Yield/Lending Protocol

These are the foundational layers of DeFi on Hyperliquid — widely applied, well-integrated, and shaping the flow of capital within the ecosystem. Whether it’s lending, staking, or automated vaults, these protocols are essential for anyone engaging in large-scale farming, lending, or deploying liquidity.

Hyperlend: Real-time Leverage Lending

Hyperlend allows users to provide or borrow assets such as HYPE, with interest rates automatically adjusted based on demand. It also unlocks dynamic leverage positions, offering traders speed and flexibility across HL native assets.

Timeswap: Fixed-term lending without oracles

Timeswap allows users to lend and borrow over a fixed term without the need for oracles or price information. Anyone can create a market for any ERC-20 token, making it one of the most innovative designs in the lending space.

Felix Protocol: Borrow feUSD using crypto collateral

Felix allows users to mint feUSD using assets such as HYPE, ETH, or BTC. With its margin strategy, stable pools, and trader-friendly mechanisms, it is a rapidly growing lending layer with a strong TVL.

Morpho: Providing customizable lending services for DeFi professionals

Morpho is a lending protocol known for its peer-to-peer and liquidity pool-based strategy combination, allowing users to fine-tune risk and return in selected markets. Morpho has over $4 billion in TVL and a non-profit structure, making it a security-focused, developer-friendly platform designed to provide flexibility.

stHYPE: The liquidity staking of HYPE

stHYPE allows users to stake HYPE while using it in DeFi. The staked tokens accumulate rewards in real-time, support quick unstaking, and are collateralized at a 1:1 ratio, making it one of the most widely used staking layers on HL.

A-level Yield/Lending Protocol

This category contains platforms with tremendous potential, robust mechanisms, and bright prospects. Some of these platforms are relatively new, while others are still expanding—but the core elements of all platforms are already in place. With a little push or the accumulation of time, they can easily rise to the top ranks.

HypurrFi: Using leveraged lending and stablecoins as the engine

HypurrFi allows users to execute yield strategies in a loop using HYPE, stHYPE, or stablecoins, and to collateralize loans with the RWA-supported stablecoin USDXL. With built-in risk management and options-based strategies, it is one of the more complex lending layers in HL.

Hyperbeat: One-Click DeFi Yield Vault

Hyperbeat provides an automated treasury that finds the best yield paths within the HL ecosystem. It supports HYPE, ETH, stablecoins, and features a points program linked to its BEAT token, making it a convenient entry point for passive miners.

Kinetiq: A liquid staking protocol with validator routing

Kinetiq has issued kHYPE for liquid staking and routed through an automatically optimized validator hub. With the launch of the institutional version (iHYPE) and the establishment of an auditing mechanism, its goal is to expand the staking scale for retail and professional investors.

B-Level Yield/Lending Protocol

These are all legitimate protocols that are live, fully functional, and quietly building real traction. However, these protocols have lower adoption rates and visibility, or key features are still being rolled out. As their potential gradually unfolds, they are worth keeping an eye on.

LoopedHYPE: Circular Loan HYPE for Higher Returns

LoopedHYPE has implemented an automated staking yield cycle for HYPE, converting it into LHYPE—a token you can use in DeFi to continuously earn profits. Smart cycles, community rewards, and ecosystem reinvestment give it a unique appeal.

Hyperpie: Liquid Staking, Meme Launch Platform, and DEX

Hyperpie combines liquidity staking, a Meme token DEX, and a Meme launch platform, integrating these three functions into an engaging and powerful DeFi suite. Users can stake HYPE, launch or trade Memes, and participate in governance through "ve-style voting," creating a full-stack Meme economy.

Liminal: Earn passive income through delta neutral mining.

Liminal automated delta neutral strategy that generates returns from funding rates, providing market-neutral returns for USDC deposits. No locking required, no re-pricing of tokens, just passive income with real-time performance tracking.

Hyperdrive: A Stablecoin-Centric Money Market

Hyperdrive helps users earn returns through stablecoins, using stablecoins as collateral for lending, and even staking HYPE, all of which are done on a single dashboard. It also supports simplified yield strategies and the DeFi stacking of HLP.

D2 Finance: On-Chain Derivatives Vault

D2 tokenizes advanced derivative strategies into tradable positions. With an institutional background, complete transparency, and a focus on risk-adjusted returns, it offers a hedge fund-like on-chain experience.

Napier Labs: Fixed Income Market and Tokenized Rates

Napier makes it possible to lock in fixed income and tokenize trading interest. Its modular design supports customized yield products and integrates with Curve to maximize liquidity. It's like a fixed income DeFi, but composable and built for builders.

Non-ranking Yield/Lending Protocol

These platforms are either not yet launched, still in testing, or lack usage data, making it impossible to conduct reliable rankings. Do these protocols have potential? Of course they do. But until we witness them actually going live, they remain unrated.

Altitude: A collateral loan agreement that generates returns

Altitude converts users' loan collateral into income-generating assets. These assets do not remain idle but gradually reduce users' debt through an automatic rebalancing feature. This is an excellent choice for users who wish to borrow efficiently without the need for frequent micromanagement.

HyperYield: Native Lending and Yield Layer

HyperYield focuses on fast lending and automatic compound interest strategies native to HL. With instant liquidity, low fees, and a DeFi-first interface, it aims to be the default yield layer for HyperEVM.

Keiko Finance: Borrow KEI and earn rewards

Keiko allows users to mint KEI stablecoins by locking up crypto collateral, which can then be used in DeFi. It features a built-in liquidity incentive mechanism and a rolling points system that rewards borrowers and liquidity providers (LP).

Harmonix Finance: Traditional Finance ( TradFi ) style DeFi vault

Harmonix operates an automated vault using strategies inspired by hedge funds (such as options roulette and delta-neutral mining). With fixed or floating annual returns and complete transparency, it is a good choice for investors seeking risk-adjusted returns.

HyperFlash: MEV-based staking (coming soon)

HyperFlash promises to provide higher staking rewards through an MEV-based extraction mechanism. Currently still in development, its goal is to increase the earnings of HL staking users by up to 22%.

Growi.HF: Automated Quantitative Investment in DeFi

Growi uses algorithmic trading strategies to help users earn passive income while reducing market risk. It is similar to DeFi's smart investment advisors and is very suitable for "lying flat" users who seek real returns without chasing tokens or points.