Morpho WHYPE/kHYPE Lending on HyperEVM

What is Morpho WHYPE / kHYPE?

Morpho WHYPE / kHYPE is an isolated lending market on HyperEVM where Wrapped HYPE (WHYPE) serves as the loan asset and kHYPE (staked HYPE) functions as collateral. This market enables kHYPE holders to access liquidity while maintaining their staking position in the Hyperliquid ecosystem.

How This Market Works

The market connects WHYPE liquidity with kHYPE stakers:

WHYPE suppliers deposit tokens to earn interest
Borrowers pledge kHYPE staking tokens as collateral
Interest rates adjust algorithmically based on utilization
Liquidations protect lenders when collateral ratios fall

Staked Collateral: kHYPE represents staked HYPE tokens, allowing holders to borrow against their staking position without unstaking.

What Assets Are Involved

Supply Asset: WHYPE (Wrapped HYPE) Collateral Asset: kHYPE (Staked HYPE) Market Type: Liquid staking derivative collateralized lending Network: HyperEVM

Asset characteristics:

WHYPE is the ERC-20 wrapped version of native HYPE
kHYPE represents staked HYPE earning staking rewards
Both assets are native to the Hyperliquid ecosystem
Market enables capital efficiency for stakers

Staking Derivative Lending

This market type offers unique opportunities:

Stakers maintain yield while accessing liquidity
Borrowed WHYPE can be re-staked for leverage
Natural borrowing demand from yield seekers
Efficient use of staked capital

Use Cases

Borrowers utilize this market for:

Accessing liquidity without unstaking
Leveraging staking positions
Arbitrage between staking and lending rates
Participating in DeFi while maintaining stake

Risk Disclosures

Smart Contract Risk: Exposure to Morpho Blue, WHYPE wrapper, and kHYPE staking contracts. New Chain Risk: HyperEVM is emerging infrastructure with limited operational history. Staking Risk: kHYPE value depends on underlying staking protocol security and rewards. Depeg Risk: kHYPE may trade at discount during high redemption demand periods. Oracle Risk: Accurate kHYPE pricing requires reliable on-chain price feeds. Utilization Risk: High demand may temporarily limit WHYPE withdrawals. Ecosystem Risk: Early-stage ecosystem may experience volatility and protocol changes. Liquidation Risk: kHYPE price volatility could trigger liquidations during market stress.