The Ultimate Guide to Farm the Hyperliquid Ecosystem

This article introduces several DeFi protocols within the HyperEVM ecosystem, covering protocols such as Felix, Mizu Labs, Drip.Trade, HyperSwap, etc.

Original Title: The Ultimate Guide to Farm the Hyperliquid Ecosystem

Original Author: Castle Labs

Original Compiler: zhouzhou, BlockBeats

Editor's Note: This article introduces several DeFi protocols within the HyperEVM ecosystem, covering protocols such as Felix, Mizu Labs, Drip.Trade, HyperSwap, etc., which provide opportunities for staking, liquidity mining, and airdrop rewards. By participating in these protocols, users can earn multiple rewards and ecosystem points, and potentially receive future token allocations. The HyperEVM ecosystem shows great potential, with the value of early activities being underestimated, providing a second chance for users who missed the first wave of airdrops.

Unless you have completely detached from the crypto space, you must have noticed: Hyperliquid is everywhere. It is one of the few projects executing TGE strategies precisely, not only creating substantial wealth but also maintaining growth momentum across the ecosystem.

While most traders focus on perpetual contract layers, which have indeed found product-market fit and built one of the most active "cult communities" in the crypto space, the expanding application layer around HyperEVM is often overlooked. The real opportunity lies here.

Castle has covered the core content of Hyperliquid in this analysis:

This guide will delve into the mining strategies forming around HyperEVM, including their evolution, who is most likely to receive rewards, and how to position oneself in the early stages.

What has happened, and what comes next?

@hyperliquidx's first airdrop in November 2024 became a historic event, distributing 31% of its total token supply to over 90,000 users. The token issuance price was $3.20, peaking at $34. This airdrop was valued at over $10.5 billion at its peak, making it one of the largest wealth transfers in crypto history.

The current opportunity is immense and still in its early stages. HyperEVM is live, core protocols are operational, and various point systems are incentivizing user behavior.

The liquidity across the entire ecosystem remains thin, which is often the best time to capture maximum returns. So far, Hyperliquid has allocated 31% of its total supply, with another 39% yet to be distributed. At current valuations, this means nearly $4 billion worth of $HYPE could be distributed to future participants.

And this is not just about $HYPE itself. Native protocols like @KittenswapHype, @HyperLendx, and @HypurrFi are also conducting their own point activities, which can yield rewards now and potentially stack with future ecosystem incentives.

The market has not yet reacted fully. Overall participation remains low, attention is scattered, and few can position themselves accurately. If this cycle unfolds according to the logic of the previous cycle, the earliest and most active participants will reap the largest rewards.

So, who is most likely to benefit next?

Considering these, here are the 10 mining opportunities currently worth focusing on in the Hyperliquid ecosystem.

1. KittenSwap -- ve(3,3) Model DEX for HyperEVM - @kittenswaphype

KittenSwap is the main DeX on HyperEVM, adopting a ve(3,3) model similar to Velodrome and Solidly. It supports trading pairs of stablecoins and volatile tokens, rewarding long-term users through fee dividends, point programs, and governance mechanisms.

As the DEX with the highest trading volume and TVL in the ecosystem, KittenSwap is the core hub of HyperEVM liquidity. Many new protocols choose to launch tokens or create stablecoin trading pairs here.

KittenSwap recently launched concentrated liquidity pools, allowing for custom price ranges, and temporarily increased point multiplier. Some trading pairs currently offer up to 20 times point rewards (such as LHYPE/HYPE and USDXL/HYPE), while standard pools have seen a decrease in multipliers. This indicates that the protocol will be more inclined to support concentrated liquidity in the future.

Mining Strategy

Add liquidity to high-yield pools ------ Focus on pools with high multipliers, such as PURR/HYPE, LHYPE/HYPE, and USDXL. Avoid pools with excessively high total locked amounts, where rewards may be diluted.

Stake LP tokens to earn points ------ After adding liquidity, stake LP tokens on KittenSwap to earn points. Points are updated weekly and determine your allocation share in future token distributions.

Use MechaCats NFTs to boost yields ------ Holding MechaCats NFTs provides a points bonus:

MechaCats holders will also ensure a 3% share of the veKITTEN supply when the token launches.

2. HypurrFi -- Leverage Lending and Stablecoin Yields - @hypurrfi

@HypurrFi is a leverage lending platform on HyperEVM and the issuer of the native over-collateralized stablecoin USDXL. Users can borrow USDXL by collateralizing $HYPE or stHYPE while