LoopedHYPE (LHYPE) is a decentralized finance (DeFi) protocol built on the Hyperliquid blockchain that focuses on yield optimization for holders of the HYPE token.
It operates as an automated looping protocol that maximizes yield on staked HYPE and other yield-bearing tokens by using an automated leveraging strategy behind the scenes.
Users deposit HYPE tokens and receive LHYPE tokens in return, which represent staked HYPE combined with this looping strategy to generate additional yield on top of standard staking rewards
What Is LoopedHYPE?
LoopedHYPE is an innovative yield optimization protocol built on the Hyperliquid blockchain, designed to maximize staking returns for holders of the HYPE token.
It introduces a liquid looping token called LHYPE, which represents staked HYPE (stHYPE) combined with an automated leveraging strategy.
This system dynamically manages leverage ratios—ranging from 3x to 15x—based on real-time staking APYs and borrowing costs within the Hyperliquid ecosystem.
The goal is to make sophisticated, institutional-grade leveraged yield farming accessible to all users without requiring them to manually handle complex leveraged positions.
How Does LoopedHYPE Work?
Liquid Looping Token (LHYPE): When users deposit HYPE tokens into the LoopedHYPE protocol, they receive LHYPE tokens in return. LHYPE represents their staked and leveraged position.
Dynamic Leverage Adjustment: The protocol automatically adjusts leverage to optimize yields by balancing staking rewards against borrowing costs.
Automated Yield Optimization: Users benefit from enhanced staking returns without managing the underlying leverage themselves.
Ecosystem Integration: LHYPE tokens can be used across various HyperEVM DeFi protocols, earning additional rewards and points.
Governance and Rewards: LHYPE holders become eligible for governance token airdrops and can participate in the protocol’s governance and reward programs.
Key Features of LoopedHYPE:
Automated Looping Strategy: The protocol dynamically adjusts leverage ratios (between 3x to 15x) based on real-time staking APYs and borrowing costs within the Hyperliquid ecosystem, allowing users to benefit from institutional-grade yield strategies without managing complex leveraged positions themselves.
Democratizing Institutional DeFi: LoopedHYPE aims to make professional-grade yield strategies accessible to all users, not just sophisticated traders.
Community-Centric Architecture: The LHYPE token is backed by a governance token, with 90% of the supply distributed to depositors and ecosystem participants, fostering community involvement.
HyperCatalyst Initiative: 1% of the Total Value Locked (TVL) is reinvested back into Hyperliquid native projects to strengthen the ecosystem.
LoopedHYPE Tokenomics and Market Data:
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LHYPE tokens represent staked HYPE plus leveraged yield.
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Market Cap: Approximately $52.5 million.
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Total Value Locked (TVL): Around $52.3 million.
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Circulating Supply: About 1.37 million tokens.
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Fully Diluted Valuation (FDV): Approximately $52.5 million.
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The token is actively traded on decentralized exchanges such as HyperSwap V3, Kittenswap V3, and Gliquid, with a 24-hour trading volume of roughly $1.6 million.
LoopedHYPE Use Cases:
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Yield maximization for HYPE token holders through automated leverage.
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Participation in governance via the LHYPE governance token.
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Support and growth of the Hyperliquid ecosystem through reinvestment initiatives.
How to Participate in the LoopedHYPE Airdrop
Step 1: Deposit HYPE Tokens
Deposit your HYPE tokens into the LoopedHYPE protocol to receive LHYPE tokens.
This action makes you eligible for governance token rewards and airdrops.
Step 2: Register for the Phase-2 Airdrop
Visit the official LoopedHYPE airdrop registration page.
Enter your wallet address and complete the registration before the deadline (July 16, 2025, 23:59 UTC).
The Phase-2 airdrop distribution of LOOP tokens is scheduled between July 18-22, 2025.
Step 3: Earn Points to Maximize Rewards
Hold LHYPE tokens to earn daily points automatically.
Stake LOOP tokens to multiply your points up to 3x, increasing your airdrop allocation.
Points determine your share in Early Adopter, Loyalty, and LoopDrops airdrop programs.
Track your points and rankings on staking reward platforms.
Step 4: Stake LOOP Tokens for Multipliers
Staking LOOP tokens (receiving stLOOP) unlocks multipliers on points, boosting your rewards across multiple airdrop phases.
Multipliers apply to Early Adopter, Loyalty, and LoopDrops reward categories.
Additional Tips:
Engage with the HyperEVM ecosystem by using LHYPE in DeFi protocols to earn extra points.
Participate early to benefit from larger allocations, as token unlocks depend on total value locked (TVL) milestones in the ecosystem.
Summary
LoopedHYPE is a next-generation yield optimizer on the Hyperliquid blockchain that leverages automated, dynamic leverage to boost HYPE staking returns.
By depositing HYPE and engaging with the protocol, users receive LHYPE tokens that grant access to multiple reward streams, including governance token airdrops.
The ongoing Phase-2 airdrop offers LOOP tokens to registered participants who hold LHYPE and stake LOOP, with rewards scaled by a points system rewarding active and early users.
To participate effectively:
Deposit HYPE to get LHYPE.
Register for the airdrop before July 16, 2025.
Hold LHYPE and stake LOOP to maximize points and rewards.
Engage with HyperEVM protocols to earn additional benefits.
This approach makes LoopedHYPE an attractive opportunity for DeFi users seeking leveraged yield farming with simplified management and multiple layers of rewards in the growing Hyperliquid ecosystem.
