# HYPE Carry Loan for YEX

**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.

***

## Deployment Strategy

{% stepper %}
{% step %}

### 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.
  {% endstep %}

{% step %}

### 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**.
  {% endstep %}

{% step %}

### 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.*
  {% endstep %}
  {% endstepper %}

***

## 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.

***

## 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)**

<table><thead><tr><th width="429.078125">Income (on $16M HYPE + $1M perp)</th><th width="180.29296875">$ (Approx)</th><th>% on $20M USDT</th></tr></thead><tbody><tr><td>HYPE staking yield (2.23% on $16M)</td><td>$356.8k</td><td>1.78%</td></tr><tr><td>HIP-3 fixed yield (4.0% on $16M)</td><td>$640.0k</td><td>3.20%</td></tr><tr><td>DS performance share (base ADV case)</td><td>$768.4k</td><td>3.84%</td></tr><tr><td>Perp funding on $1M short (20% illustr.)</td><td>$200.0k</td><td>1.00%</td></tr><tr><td><strong>TOTAL GROSS INCOME</strong></td><td><strong>$1.97M</strong></td><td><strong>9.82%</strong></td></tr></tbody></table>

<table><thead><tr><th width="429.078125">COST</th><th width="180.29296875">$ (Approx)</th><th>% on $20M USDT</th></tr></thead><tbody><tr><td>HYPE borrow cost ($r_b$ = 8% on $16M)</td><td>$1.28M</td><td>6.40%</td></tr><tr><td><strong>NET BEFORE PRICE MOVES</strong></td><td><strong>$0.69M</strong></td><td><strong>3.42%</strong></td></tr></tbody></table>

***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.

***

## Risk & Exposure Snapshot

**Table 3 – Risk Matrix**

<table><thead><tr><th width="250.65234375">Dimension</th><th>Position</th></tr></thead><tbody><tr><td><strong>Term</strong></td><td>12 months</td></tr><tr><td><strong>Collateral</strong></td><td>$20M USDT (segregated)</td></tr><tr><td><strong>HYPE Delta</strong></td><td>$16M long – $1M short = <strong>~$15M net long</strong></td></tr><tr><td><strong>Leverage</strong></td><td>80% LTV vs USDT</td></tr><tr><td><strong>Main Risk Drivers</strong></td><td>HYPE price, funding rates, DS P&#x26;L</td></tr><tr><td><strong>Main Income Drivers</strong></td><td>Staking, HIP-3 fixed, DS, perp funding</td></tr></tbody></table>

***

## 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.


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