melis
3.6K posts
Good morning 🍔 おはようございます 🍣 Bonjour 🥐 Good morning 🍵 Good morning lah! 🍜
Someone asked me yesterday how I see DeFi lending on EVM managing the steady flow of assets into Hyperliquid Core's Portfolio Margin. @Ace_da_Book specifically. This is a good question. When majors are collateral for trading, why would they stay in lending? The answer is @eulerfinance. This is exactly why at @HypurrFi we started the journey to be Euler on Hyperliquid. Euler can, does, and should have majors in markets, but the real beauty of the stack is derivatives. Yeah baby, assets that traders want exposure to, but don't have a home in a perps DEX margin basket. What, you ask, could assets like this be? Dammit man look outside of crypto and the vast horde of RWAs coming onchain. Equities sure, but ETFs, insurance funds, private credit, mortgage backed securities, credit (and the credit long tail like CDS), industrial receivables: ALL of this is the kind of thing that doesn't belong as collateral on an exchange that needs 1:1 backing at all times. But it is all coming onchain. Is this a niche market in crypto? Yeah for now. But it is a $715 TRILLION market segment. The EUR/USD 3M forward interest rate is not good collateral to 20x short Fartcoin, but it does belong in an onchain isolated market facility with custom risk parameters. So, is HypurrFi doing anything about PM on Hyperliquid? You bet. We saw the writing on the wall for majors ages ago. We don't think competing with the most liquid venue in crypto, and soon the world, would be a winning proposition. Instead, we're building alongside. Complementary to Hyperliquid, the stuff finance needs to mature. This is a market that makes sense. For now, we inch towards that with new listings, a cool card product coming out to spend against them, and more that makes the stack profitable and useful to traders. But we aim to be inevitable. It's HY FInance. We multiply.
