The Hyperliquid ecosystem is developing strong momentum, and the potential of $HYPE is underestimated.

More than two months ago, a well-known token incident sparked divergent views in the market regarding the future of an emerging platform. Some believe that the platform will repeat the mistakes of the past, while others firmly believe that its prospects remain bright.

Recently, $HYPE broke through 44 dollars, setting a new historical high. Starting from the bold moves of a well-known trader, this platform and its continually rising token price have shed the previous gloom and opened a new chapter.

Driven by the strong performance of $HYPE, its ecosystem is quietly developing and expanding. How do ecosystem builders view this emerging platform? What distinguishes this platform and its ecosystem from other well-known exchanges and public chains? Is the current market value of $HYPE reasonable? With these questions in mind, we interviewed a co-founder of a certain lending protocol.

The Development History of Lending Agreements

The lending protocol is positioned as a decentralized lending service provider within the emerging platform ecosystem. It is the only project on the platform that has been officially authorized to run the latest code. Users can use $HYPE as collateral for lending, while also offering features like flash loans, enabling users to execute various strategies.

In addition to basic functionality, the protocol aims to become the financial infrastructure of the platform, providing liquidity channels, on-chain risk management mechanisms, and other asset collateral credit limits that applications can access. By simplifying complexity and providing deep, composable liquidity, the protocol aims to become the preferred yield layer on the platform, where users can earn returns on idle assets and obtain leverage for any strategy.

Currently, the protocol is developing new features for the platform ecosystem, such as tokenizing the market maker's liquidity pool. Users can deposit into the liquidity pool through the protocol and receive tokenized certificates representing their deposits. These certificates can be used as collateral on the protocol to borrow stablecoins, thereby achieving higher capital utilization efficiency and returns.

In addition, the protocol is exploring the possibility of using perpetual contract positions as collateral. This will change the limitation that long positions cannot be fully utilized on centralized exchanges. Users can open positions on the protocol while obtaining tokenized certificates representing the positions, allowing them to maintain their open positions and also use the positions as collateral to borrow stablecoins for further investments.

Unique Advantages of the Platform

Compared to other well-known exchanges and public chains, this platform has chosen a "transparency first" architecture. Every transaction, fund movement, and settlement is executed directly on the chain, leaving an immutable public audit trail. This starkly contrasts with centralized exchanges that have closed order books and risk control engines.

The unique feature of the platform lies in its proprietary execution layer, which includes built-in precompiled contracts and interactive code interfaces. These precompiled functions allow any developer to access the platform's complete order book with just one call. Liquidity becomes a "public asset," and on-chain strategies can directly tap into centralized-level depth.

This architecture brings powerful combinatorial capabilities. For example, a perpetual contract for BTC-USDC can be opened directly from a smart contract and tokenized into an asset similar to ERC-721. This position itself becomes a movable collateral, which can be transferred over-the-counter, used for lending, or packaged into structured products without the need to close the position.

By natively routing orders to the trading platform, the efficiency of the capital is preserved. Whether it is the liquidity pool, bots, or ordinary users' wallets, a single contract interaction is sufficient to obtain the "maximum amount available from the order book", thereby eliminating the common basis risk and slippage associated with on-chain derivatives.

The Development Prospects of the Ecosystem

With the continuous improvement of the platform's performance, it is expected to attract more users to participate in trading various assets, including meme coins. The cohesion of the community may also give rise to a unique meme coin culture.

Currently, the platform is actively responding to the challenges posed by user demand. Recently, due to the surge in trading volume of meme coins, gas fees spiked at one point. The development team quickly made adjustments, shortening the block time to improve transaction processing capacity and reduce gas pressure.

This ability to quickly respond to community needs, combined with continuous technological improvements, has laid a solid foundation for the platform's long-term development.

Valuation of $HYPE

Compared to other well-known public chain tokens, $HYPE is currently possibly undervalued. Considering the platform's value as an exchange and the daily token repurchase of approximately $3 million (annualized at about $1 billion), the market capitalization growth potential of $HYPE is enormous.

If the platform can maintain its current momentum, the market capitalization of $HYPE is expected to reach a remarkable level by the end of the year.