We’re currently raising +3M in a seed round. If interested, please contact [email protected] or DM us on Twitter @hyperplex_xyz.
With each new protocol, choosing where to allocate liquidity becomes harder for users and sourcing liquidity becomes harder for protocols. Hyperplex allows users to “re-provide” existing AMM positions to farm multiple protocols at once while still earning their original yield. Our liquidity adapter combines re-provided AMM and money market positions into liquidity suitable for any given protocol and reroutes it there in real-time through a peer-to-pool liquidity lending market. In doing so, users earn more from their originally under-utilized liquidity without lockups, vaults, or alterations to their risk profile. Protocols can now circumvent liquidity sourcing and maintenance entirely, thus dramatically reducing incentive and operational costs while supporting the complex liquidity needs of derivative protocols which is by far their most difficult challenge. Hyperplex offers an immediate and salient benefit to current AMM users while also situating itself as the liquidity management layer for an increasingly complex DeFi ecosystem.
We used to build Itos, a derivatives platform, and in the process noticed deep flaws in the DeFi derivatives market. We still believe DeFi derivatives will succeed one day but we also believe the exact shape or form it needs to take on won’t be solved any time soon. None of the current iterations seem particularly promising so rather than putting all our eggs in one product’s basket, we decided the key to succeeding in the derivatives space is rapid iteration.
The biggest hurdle to rapid iteration is sourcing liquidity. Each derivative is different so the marketing is different and those liquidity bootstrapping campaigns are expensive and time consuming. Furthermore, users don’t feel confident at all underwriting a complex derivative. And why should they? Even for a great perp options protocol like Good Entry, a 300% APR boost from incentives is not enough to push their TVL past 220K. So if we need more complex & entertaining derivatives, but can’t even source liquidity for a basic derivative like an option, we seem to be at an impasse.
This would be true except for one insight, which is that we can create 2nd-order approximations of any derivative with only liquidity from borrow/lending markets and AMMs. This is the core of the Itos whitepaper. Therefore if we can just accumulate liquidity from these two sources, we can rapidly iterate through any derivative design we dream of without daunting liquidity providers with idiosyncratic risks and complexities.
And that’s what Hyperplex does by playing into tried-and-true value propositions with new technology. Strategy vaults, yield aggregators, leveraged LPs, incentive farms, and auto-compounders command a respectable market share. Our platform satisfies all of those demand types while utilizing UX elements from deck-building games, character-creation, online-shopping, re-staking, and more. Simply put, we’ve tailored Hyperplex to offer immediate value to AMM users while also empowering the future of DeFi derivatives design.
We provide value to users in three ways giving us three paths to revenue.
We’re a yield optimization platform for AMM depositors offering low-risk, high-impact optimizations such as V3 auto-compounding, farming multiple incentives simultaneously, yield for inactive liquidity, and more. Users “re-provide” their AMM liquidity provisions (similar to Eigenlayer for ETH staking) to earn their base yield alongside additions.
We’re a liquidity sourcing platform for other protocols. We offer on-demand liquidity so new protocols no longer have to run expensive marketing campaigns to bootstrap and pay enormous incentives to maintain a liquidity pool. Strategy vaults
We trivialize the production of more complex derivative platforms. While we encourage other DeFi protocols to integrate through borrowing (#2), we will also launch a number of derivatives platforms ourselves (some of which are already built).
The investment is done through a Simple Agreement for Future Tokens with a 13 week cliff and 65 week linear vest from the Token Generation Event. Therefore the tokens are fully unlocked in a year and a half from TGE.
We can allow token staking during the vesting period upon request.