Original article from SMooTH
Compiled by | Odaily Golem (@web3_golem)
To be honest, no one enters the crypto industry just to stare silently at their wallet balance. We all hope for wallet balance growth, and one lower-risk method is through DeFi. And on HyperLiquid, DeFi is entirely different.
Want to grow your funds? Want to do circular lending? Want to stake? Want to pledge your principal for borrowing and then stake while earning points? If you do, welcome to experience the true engine of DeFi on HyperLiquid: yield protocols, lending platforms, liquid staking layers, and automated vaults.
They might not be the coolest applications, but these are precisely the places that can truly increase your funds—whether you're sleeping, trading, or posting on Twitter.
Some of these protocols have existed since the birth of HyperEVM, while others have just launched. All these protocols are built in the rapidly developing HyperEVM native environment, which will have a profound impact on DeFi development on HyperLiquid.
This article provides a comprehensive analysis of these protocols based on utility, popularity, and relevance to help you find areas worth investing funds and attention. (Ranking is based on a comprehensive consideration of factors such as potential, relevance, trading volume, user awareness, and overall ecosystem impact)
S-Tier Yield/Lending Protocols
These are the foundational layer of DeFi on Hyperliquid—widely applied, well-integrated, and shaping capital flow within the ecosystem. Whether for lending, staking, or automated vaults, these protocols are crucial for anyone looking to farm at scale, borrow, or deploy liquidity.
Hyperlend: Real-Time Leverage Lending
Hyperlend allows users to provide or borrow assets like HYPE, with interest rates automatically adjusting based on demand. It can also unlock dynamic leverage positions, providing traders with speed and flexibility across HL native assets.
Timeswap: Lending with Fixed Terms Without Oracles
Timeswap allows users to lend and borrow with fixed terms, without oracles or price information. Anyone can create a market for any ERC-20 token, making it one of the most innovative designs in lending.
Felix Protocol: Borrowing feUSD with Crypto Collateral
Felix allows users to mint feUSD using assets like HYPE, ETH, or BTC. With margin strategies, stability pools, and trader-friendly mechanisms, it's a rapidly developing lending layer with strong TVL.
Morpho: Customizable Lending for DeFi Professionals
Morpho is a lending protocol known for its peer-to-peer and pool-based strategy combinations, allowing users to fine-tune risk and returns in selected markets. With over $4 billion in TVL and a non-profit structure, it's a developer-friendly platform focused on security and flexibility.
stHYPE: Liquid Staking for HYPE
stHYPE allows users to stake HYPE while using it in DeFi. 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.
[The translation continues in the same manner for the rest of the text, maintaining the specified translation rules.]Unranked Yield/Lending Protocols
These platforms are not yet released, still in testing, or lack usage data, reliable ranking impossible. this time. Do these protocols have potential? Certainly. But they remain unrated until we witness their actual operational launch.
Altitude: Yield-Collateralized Loan Protocol
Altitude transforms users' loan collateral into yield-generating assets. These assets are not idle but gradually reduce user debt through anbalfunctionality. an excellent seeking efficient lending without frequent micro-management.
HyperYield: Native Lending and Yield Layer
HyperYield focuses on HL's native rapid lending and automatic compounding strategies. With instant liquidity, low fees, a and DeFi-first interface, it aims to become the default yield layer for HyperEVM.
Keiko Finance: Borrow KEI and Earn Rewards
Keiko allows users to mint KEI stablecoin by locking crypto collateral, then use KEI in DeFi. It has built built-in liquidity incentives and a rolling points system that rewards borrowborrowusers and liquproviders (liquLP).
Harmonix runs automatedated vaults using hedge fund-such as option roulette and Delta-neutral mining). With fixed or floating APY and full transparency, it seeking-adjusted returns p, it's an an excellent choice.HyperFlash: MEV-Based Staking (Upcoming h3>HyperFlash promises higher staking rewards through an MEV-based extraction mechanism. Currently under development, its is to HL staking staking staking users' rewards by up to 22% > automated Quantitative in DeFigra algorithmic trading strategies helping passive income while reducing market risks. It's similar to a smarteFadvisor in DeFi, perfect for "lying flat" who" seek real returns withoutasing points.
