What is Hyperstable?
Hyperstable is a decentralized finance (DeFi) protocol designed to provide a robust, over-collateralized stablecoin ecosystem.
Its primary stablecoin, USH, is engineered to maintain a stable value relative to the US dollar.
Hyperstable leverages proven DeFi mechanisms and innovative features to create a sustainable, community-driven financial platform.
Hyperstable Key Features
USH Stablecoin: Over-collateralized and crypto-backed, designed to hold a $1 value.
Multiple Collateral Types: Supports assets such as HYPE, wstHYPE, uBTC, and uETH.
Isolated Vaults: Each collateral type has its own risk parameters.
Dynamic Interest Rates: Adjusts based on utilization, peg stability, and protocol conditions.
Dual Token Model: PEG for incentives and vePEG for governance.
Revenue Sharing: 100% of protocol revenue (interest and liquidation fees) is distributed to vePEG holders.
Sustainable Emissions: Carefully designed tokenomics for long-term stability.
How Does Hyperstable Work?
Core Mechanics
1. Borrowing USH:
Users deposit supported collateral (e.g., wHYPE) to mint USH.
The system requires a minimum collateralization ratio (typically 150%).
If the collateral value drops too low, positions can be liquidated to protect the protocol.
2. Managing Positions:
Users monitor their health factors and collateralization ratios.
Maintaining a healthy position prevents liquidation.
3. Liquidity Provision:
Users can provide liquidity to USH trading pairs and earn PEG rewards.
Liquidity providers help maintain USH’s peg and receive incentives.
4. Governance:
PEG tokens can be locked to create vePEG, granting voting power.
vePEG holders direct protocol emissions, vote on proposals, and earn protocol revenue.
5. Emissions and Incentives:
PEG emissions are distributed via gauge voting, with vePEG holders deciding where incentives go.
Bribe marketplace allows external parties to influence gauge votes.
How to Participate in Hyperstable
Step-by-Step Guide
1. Acquire HYPE Tokens
Purchase HYPE tokens from an exchange like Hyperliquid.
2. Transfer to HyperEVM
Move your HYPE tokens to the HyperEVM network.
3. Swap for wHYPE
Use HyperSwap to exchange HYPE for wrapped HYPE (wHYPE).
4. Connect Wallet
Visit the Hyperstable platform and connect your crypto wallet.
5. Deposit Collateral
Deposit wHYPE as collateral in the “Deposit” section.
6. Mint USH
Go to the “Mint” section, select the amount of USH to mint based on your collateral.
Ensure you maintain the required collateralization ratio to avoid liquidation.
7. Claim PEG Bonuses
Visit the “Bonus” page to claim earned PEG tokens weekly.
Choose between 25% liquid PEG or 100% max-locked PEG.
8. Referral Program
Generate a unique referral code and share it to earn additional PEG rewards.
9. Participate in Governance
Lock PEG tokens to create vePEG, enabling you to vote and earn protocol revenue.
What are the main benefits of staking PEG tokens and locking vePEG for users？
The main benefits of staking PEG tokens and locking vePEG for users in the Hyperstable ecosystem center around earning rewards, governance participation, and maximizing long-term value:
Benefits of Staking PEG Tokens
Earn Incentives: By staking PEG tokens, users receive staking rewards distributed by the protocol, which can include additional PEG tokens or other incentives.
Support Protocol Stability: Staking PEG helps secure the protocol’s incentive mechanisms, contributing to the stability and sustainability of the stablecoin system.
Flexibility (if liquid staking is supported): While traditional staking locks tokens, some protocols offer liquid staking options allowing users to earn rewards while retaining liquidity and using derivative tokens in DeFi.
Benefits of Locking vePEG (Voting Escrow PEG)
Governance Power: Locking PEG tokens to create vePEG grants users voting rights to influence key protocol decisions such as emissions distribution, parameter changes, and upgrades.
Revenue Sharing: vePEG holders receive a share of 100% of the protocol’s revenue, including interest and liquidation fees, providing a passive income stream beyond staking rewards.
Long-Term Alignment: Locking tokens aligns user incentives with the protocol’s long-term success, encouraging commitment and reducing token sell pressure.
Enhanced Incentives: vePEG holders can direct PEG emissions via gauge voting, effectively deciding where rewards are allocated, which can increase their overall returns.
Stronger Community Role: By locking PEG, users become active stakeholders, helping shape the ecosystem’s future and governance.
Hyperstable FAQ
| Question | Answer |
| What is USH? | USH is Hyperstable’s over-collateralized stablecoin, pegged to $1 and backed by crypto assets. |
| What collateral is accepted? | Supported assets include wHYPE, wstHYPE, uBTC, and uETH, each with unique risk parameters. |
| What is the minimum collateral ratio? | Typically 150% (1.5 Health Factor). If your ratio falls below, your position may be liquidated. |
| What is PEG? | PEG is Hyperstable’s governance and incentive token. It can be locked for vePEG to participate in governance. |
| How do I earn PEG? | By minting USH, providing liquidity, referring users, and participating in governance. |
| How are rewards distributed? | PEG rewards are distributed weekly based on activity, with options for liquid or locked PEG. |
| What are the risks? | Risks include smart contract vulnerabilities, liquidation risk, and market volatility. Do your own research. |
| Where can I get support? | Join the Hyperstable community on Discord, follow on Twitter (@HyperstableX), or consult the official doc. |
Conclusion
Hyperstable is a next-generation DeFi protocol offering a secure, over-collateralized stablecoin (USH), robust governance, and innovative incentive mechanisms.
By participating—whether minting USH, providing liquidity, referring friends, or joining governance—users can earn rewards and help shape the protocol’s future.
As with any DeFi platform, understanding the mechanics and risks is essential before participating.
