HYPE Carry Loan for YEX

HYPE (HIP-3) Carry Loan for Nunchi Yield Exchange Deployment on Hyperliquid L1.

Capital-Efficient Yield Stack for Market Makers & Liquid Token Strategies

Executive Summary

Post $20M USDT as term collateral, borrow $16M HYPE, stake it into the HIP-3 HYPE Loan / nHYPE structure, short ~$1M HYPE perps for funding + partial hedge, pay the HYPE borrow rate, and earn a stacked carry from staking yield + fixed HIP-3 yield + deployer-share (DS) + perp funding.

Structure Overview (12-Month Term)

Trade Structure

Table 1 – Trade Structure (12M Term)

Leg	Notional / Term	Utility
USDT Collateral	$20M, 12M lock	Secures HYPE loan (80% LTV)
HYPE Loan	$16M notional borrowed	Principal for yield stack
HIP-3 HYPE Loan/nHYPE	$16M staked	Staking + HIP-3 + DS yield
HYPE Perp Short	$1M notional short	Funding income + hedge
Borrow Cost	$r_b$ on $16M HYPE	Only explicit financing

Inputs

• $20M USDT posted as term collateral (12-month lock) in a segregated / pledged facility.

• $16M notional HYPE borrowed against it.

• ~80% LTV vs USDT collateral.

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Deployment Strategy

1

Stake HYPE into HIP-3 HYPE Loan (via nHYPE)

HYPE is enrolled as "HYPE Lender" capital in the existing HIP-3 HYPE Loan / staking note.

Yield Sources:

• 2.23% HYPE staking yield on $16M.

• 4.0% fixed HIP-3 yield on $16M.

• 25% of Net Deployer Share (DS) profit, pro-rata to share of program.

2

Delta-neutral Directional HYPE Perps

Open $1M notional hedge HYPE perps on Hyperliquid (or preferred venue).

• Target: Capture positive funding when perps trade rich vs spot.

• Result: Earn funding income on $1M notional and reduce net HYPE delta from $16M long → $15M net long.

3

Financing Cost

• Pay HYPE borrow rate ($r_b$) on the $16M HYPE loan for the term.

• Note: This is the only explicit financing cost in the structure.

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Maturity (T = 12M)

At the end of the 12-month term:

1. Receive Payoff: Receive HIP-3 HYPE Loan payoff (4% fixed + DS share) in USDH / USDT on $16M.

2. Keep Accruals: Keep accrued staking yield and net perp funding P&L on $1M short.

3. Repay Loan: Repay HYPE loan (principal + borrow interest).

4. Release Collateral: $20M USDT collateral is released.

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Illustrative Economics (1-Year)

Using base ADV and sample rate assumptions from the HIP-3 term sheet.

Table 2 – Illustrative 1-Year Economics (Base Case)

Income (on $16M HYPE + $1M perp)	$ (Approx)	% on $20M USDT
HYPE staking yield (2.23% on $16M)	$356.8k	1.78%
HIP-3 fixed yield (4.0% on $16M)	$640.0k	3.20%
DS performance share (base ADV case)	$768.4k	3.84%
Perp funding on $1M short (20% illustr.)	$200.0k	1.00%
TOTAL GROSS INCOME	$1.97M	9.82%

COST	$ (Approx)	% on $20M USDT
HYPE borrow cost ($r_b$ = 8% on $16M)	$1.28M	6.40%
NET BEFORE PRICE MOVES	$0.69M	3.42%

Upside and Sensitivities (not in base calculation)

• DS share increases with higher realized ADV.

• Funding can be significantly higher in bull markets.

• USDT collateral can earn its own RWA / stable yield if layered in.

• Mark-to-market effect from net $15M long HYPE delta.

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Risk & Exposure Snapshot

Table 3 – Risk Matrix

Dimension	Position
Term	12 months
Collateral	$20M USDT (segregated)
HYPE Delta	$16M long – $1M short = ~$15M net long
Leverage	80% LTV vs USDT
Main Risk Drivers	HYPE price, funding rates, DS P&L
Main Income Drivers	Staking, HIP-3 fixed, DS, perp funding

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Why This Trade?

This is designed as a clean, institutional carry trade for market makers and liquid token strategies already active in HYPE / Hyperliquid who want stacked yield with controlled directional exposure.

• Capital-efficient: 80% LTV, USDT remains over-collateralizing the HYPE loan.

• Yield-stacked: Four income legs (staking, fixed HIP-3, DS share, perp funding) vs one borrow cost.

• Structurally hedged: Perps trim directional risk while monetizing funding.

• Operationally simple: Term facility, defined collateral, and a clear 12-month carry profile.