You deposit HYPE. We put it to work. You earn yield.
Your receipt is cHYPE. It's worth more HYPE over time as yield compounds. When you want your HYPE back, you burn cHYPE and withdraw.
Two sources. One receipt token.
| Source | Allocation | Yield |
|---|---|---|
| Validator staking | 20-30% | ~2.5% (baseline) |
| HIP-3 strategies | 50-80% | 0-15%+ (variable) |
Validator staking is the floor. HIP-3 is the upside. Both compound into cHYPE.
How we access HIP-3 yield
HIP-3 markets require 500K HYPE to deploy. The builder earns ~50% of trading fees. But there are different ways to participate:
| Mechanism | What it is | Growth Mode | Standard Mode |
|---|---|---|---|
| Pooled wrapper | Stake into a pool with rights to market revenue (e.g. Kinetiq kmHYPE) | 0.5-2% | 4-8% |
| LP vault | Deposit into a market-making vault (e.g. Ventuals VLP) | -5% to +15% | -5% to +20% |
| Stake provider | Provide stake to a deployer, split fees (e.g. Felix arrangements) | 0.5-2% | 5-10% |
| Collateral yield | Use reward-bearing collateral (e.g. USDe on HyENA) | 5-15% | 5-15% |
| Direct deployment | Stake 500K HYPE, operate market, keep 50% of fees | 1-3% | 8-15%+ |
Planned strategies: Pooled wrappers (e.g. Kinetiq kmHYPE) and LP vaults (e.g. Ventuals VLP). Collateral yield where it makes sense. Stake provider deals if terms are transparent.
With scale: Direct deployment when we have 500K+ HYPE.
LP vault warning: Market-making can lose money. VLP yield depends on trading profits, not fee share. We'd size this smaller.
$32B+ traded. And it's accelerating.
HIP-3 markets have done $32B+ cumulative volume and growing weekly. But most runs in Growth Mode (90% fee reduction).
Growth Mode (now): $32B × 0.45 bps = $1.44M total fees Builder share (50%) = $720K to stakers Standard Mode: $32B × 4.5 bps = $14.4M total fees Builder share (50%) = $7.2M to stakers
10x difference. Same volume. Same markets. Only variable: fee mode.
Now: $32B → $7.2M/year to builders (if Standard) 3x: $100B → $22.5M/year to builders 30x: $1T → $225M/year to builders Context: Nasdaq futures do $200B+ daily.
HIP-3 is early. Volume is ramping. When markets exit Growth Mode — and as Hyperliquid captures more of global trading — the fee pool scales with it.
What APR looks like
HYPE holders who want yield without selling. The 5-7% base case is respectable. The 10-15% upside is what makes it interesting. The 2-4% floor is the honest risk — you're betting on HIP-3 growth, not guaranteed returns.
Plain HYPE staking earns ~2.5%. If we can't beat that consistently, just stake directly.
We only make money when you make money
Compost exists to maximise yield. That's how you make money. That's how we make money. Our incentives are directly aligned.
Performance fee: 15% of returns above HYPE staking rate (~2.5%). If we don't beat vanilla staking, we earn almost nothing.
Management fee: 0.5%/year on the HIP-3 portion only.
No deposit fees. No withdrawal fees.
Vault yield: 8% HYPE staking rate: 2.5% Excess return: 5.5% Performance fee: 15% × 5.5% = 0.825% Management fee: 0.5% × 50% = 0.25% Your net yield: ~6.92%
What Compost earns
| AUM | Vault APR | Protocol Revenue |
|---|---|---|
| $50M | 4% | ~$180K/year |
| $100M | 6% | ~$775K/year |
| $100M | 8% | ~$1.1M/year |
| $250M | 8% | ~$2.7M/year |
At low AUM and low APR, we barely cover costs. At scale with decent yield, the protocol becomes self-sustaining.
Validating the model
These are projected yields based on current HIP-3 mechanics and market conditions. The numbers will change as we refine deployment strategies and markets evolve.
What comes next:
• Deeper analysis on specific deployment allocations and projected yields
• Beta founders vault ($10M cap) to track real stats and APR transparently
• Wider rollout if the model proves out
The founders vault lets us validate assumptions with real capital before scaling. Early stakers see the same data we do — full transparency on what's working and what isn't.
If we can't beat vanilla HYPE staking (~2.5%), you should just stake directly.