Hyperliquid-based Felix Protocol Crosses $100 Million in Outstanding Loans

As Hyperliquid’s token trades near its all-time high, activity on the HyperEVM is surging, and Felix, a collateralized debt position (CDP) and lending protocol, has just passed $100 million in outstanding loans.

The usage ratio is roughly a 60:40 split between Felix’s CDP and vanilla lending markets, with $61 million borrowed via its CDP and $43 million borrowed via its vanilla market.

Felix is the second-largest protocol on Hyperliquid's EVM, with $265 million in TVL, accounting for almost 17% of the chain’s DeFi liquidity. The protocol’s TVL has been on an upward trajectory over the last two months, and is up 813% since its official mainnet launch on April 8.

Felix only trails Hyperlend, which boasts $306 million in TVL.

The growth can be attributed to the rapid expansion of the HyperEVM, which has surged by 350% over the last two months to $1.58 billion in TVL, compared to just $350 million at the beginning of April. Felix also has an ongoing points program, which rewards users for utilizing in-app features such as minting its synthetic dollar, feUSD, or earning yields through USDe and USDT0 vaults.

Activity on the EVM is also being driven by increased speculation of a future HYPE airdrop. However, it is worth noting that there is no confirmed points program, nor is there a concrete reason to believe that EVM activity specifically will be rewarded by Hyperliquid’s future incentives. However, users are more than willing to speculate, considering Hyperliquid’s multi-billion-dollar war chest.

Charlie.hl, a contributor to Felix Protocol, told The Defiant that users may be attracted to Felix versus other protocols on Hyperliquid due to the protocol’s versatility. “Users have optionality on Felix, both on the supply side and borrow side, which is a bit unprecedented in an ecosystem as early as HyperEVM.”

He also cited an upcoming feature known as write precompiles as a potential catalyst for further innovation within Hyperliquid. As of this morning, write precompiles have been renamed in the Hyperliquid docs to “CoreWriter Contract”.

Charlie said he is “Expecting substantial unlocks on the market side when write precompiles go live, and HyperEVM protocols can integrate much more closely with HyperCore. This should enable a bit more of the HyperEVM realization of being a vehicle for trader optimization on HL.”