HLPe

Trading provides three main sources of revenue: funding rates, market making, and liquidations. HyENA Liquidity Provider Vault (HLPe) delivers the whole stack in a single primitive.

HLPe is created to help users participate in fee streams generated from HyENA. Depositors share in the vault PnL and receive a portion of HyENA trading fees, alongside rewards on USDe held in the vault.

HLPe is managed through a HyperEVM vault deployed by Upshift. User deposits on HyperEVM are routed to HyperCore where the vault strategist executes trades via a Fordefi MPC wallet.

Deposited funds are subject to a 7-day redemption period, enabling the vault strategist to optimize for vault performance while managing liquidity requirements.

Launch Timing

HLPe will launch in phases. The first phase will be a guarded launch with conservative deposit caps, allowing the team to validate execution, risk controls, and fee capture before scaling. During this period, performance may be more muted as the vault address scales into higher fee tiers and liquidity builds. Subject to performance and a cautious risk review, HLPe will then progress into subsequent phases with progressively higher caps and broader access, ultimately opening to the public while preserving a focus on stability and performance.

Rewards

Holding HLPe is rewarded with 50x Ethena Points for Ethena’s Season 5 points program.

Fees

The vault strategist accrues management and performance fees:

• The vault strategist shall receive a management fee of 0.2% annually of the TVL under management, capped at USD500,000 per annum.

• The vault strategist shall receive 20% of net trading profits above a hurdle rate of 8% annualized, calculated, and paid monthly with a high-water mark provision. Performance fees are subject to clawback provisions for risk limit breaches.

Co-investment

Vault strategists are required to co-invest in HLPe to align incentives. At launch, the vault strategist will invest $5M in HLPe, with co-investment scaling up alongside TVL.

Vault Strategist

The chosen vault strategist for HLPe is Qualia, a trading firm active across other chains and backed by a large Chicago trading firm.