Derivatives · Review
ActiveHyperliquid HLP Review 2026: Community Market Making Vault
Hyperliquid HLP is a community-owned vault that supplies liquidity to the Hyperliquid perpetuals exchange and earns a share of trading fees. It carries about $151 million in TVL, but depositors take real market-making risk.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.5/10
Good
Our verdict on Hyperliquid HLP
6.5/10Hyperliquid HLP suits experienced DeFi users who want exposure to exchange market making and liquidation income without running strategies themselves. Its main strength is access to strategies usually kept for privileged parties, backed by sizable TVL. The main caveat is risk: no audits are listed on DefiLlama, returns are not guaranteed, and the vault can lose money in volatile markets. Fee splits and withdrawal terms are not public, so read them in the app first.
Score breakdown
How Hyperliquid HLP scores
- Security
- 5.5/10
- Ease of use
- 6.5/10
- Fees
- n/a
- Features
- 6.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Hyperliquid HLP?
Hyperliquid HLP, short for Hyperliquidity Provider, is a protocol vault on the Hyperliquid chain. It provides liquidity to the Hyperliquid exchange, which the homepage describes as offering 300+ perpetual and spot markets that are fully onchain, non-custodial and open 24/7.
DefiLlama files HLP under Derivatives and lists about $151.3 million in TVL, with the linked token HYPE. The vault has been tracked since December 2024. It describes itself as fully community-owned, so depositors, not a private firm, share in the strategies.
The pitch is access: ordinary users can take part in market making and liquidations that are usually kept for privileged parties on other exchanges. Public sources say nothing about historical returns, so the yield should be checked directly in the app.
How Hyperliquid HLP works
Hyperliquid is an onchain exchange for perpetual futures and spot markets. Every exchange needs someone to quote buy and sell prices, otherwise traders cannot get orders filled. HLP is a vault that does this job on behalf of its depositors.
Per DefiLlama, the vault runs several market making strategies, performs liquidations of undercollateralised positions, supplies USDC in Earn, and accrues a portion of trading fees. Depositors pool funds and share in the result. Strategies that large exchanges often keep for privileged firms are opened to ordinary users this way.
Because the vault takes the other side of trades, its profit depends on market conditions. Calm, active markets can favour market makers, while sharp moves can cause losses. The project does not state exact strategy parameters or returns.
Pros and cons
What we like
- Opens market making and liquidation strategies to ordinary depositors.
- Described as fully community-owned.
- Earns a portion of trading fees on a large perpetuals exchange with 300+ markets.
- Substantial TVL of about $151 million per DefiLlama.
- Runs on a non-custodial, onchain exchange, so activity is visible onchain.
Watch out for
- DefiLlama lists no audits for the protocol, so readers cannot point to a published third-party review from public sources.
- TVL fell 12.2% over seven days, which shows how quickly vault capital can move.
- Depositors carry trading risk: market making and liquidations can lose money, and returns are not guaranteed.
- The vault depends on the Hyperliquid exchange and its own chain, so problems there would affect HLP directly.
- Fee share, historical returns and lock-up terms are not given publicly, so readers must check the app before depositing.
Hyperliquid HLP fees
Public sources say HLP accrues a portion of trading fees, but they do not give the percentage split, any vault performance fee, or deposit and withdrawal charges. Network and trading costs on Hyperliquid are also not described publicly. Users should look at the vault page in the Hyperliquid app for current terms before depositing.
Is Hyperliquid HLP safe?
DefiLlama lists zero audits for this protocol, and public sources give no details on code reviews, bug bounties or past incidents. Treat smart-contract and platform risk as unquantified here.
The main risk is economic. The vault makes markets and liquidates positions, so sudden price moves, thin liquidity or exchange issues can cause losses to depositors. The vault depends on the Hyperliquid exchange and its chain working as expected. The project does not cover regulatory status, so users should check local rules on derivatives products.
5 steps
How to get started with Hyperliquid HLP
- 1
Confirm that using onchain derivatives platforms is allowed where you live.
- 2
Set up a compatible self-custody wallet and keep it secure.
- 3
Open the Hyperliquid app from the official site and connect the wallet.
- 4
Find the HLP vault and read its current terms, returns history and withdrawal rules.
- 5
Deposit only an amount you can afford to lose, then monitor the vault's performance and TVL.
Who Hyperliquid HLP is for
HLP is for crypto users who understand perpetual markets and accept that a vault can lose money. It is less suitable for beginners looking for a stable, fixed yield.
Hyperliquid HLP FAQs
What is Hyperliquid HLP?
HLP is a protocol vault on Hyperliquid. It provides liquidity through several market making strategies, performs liquidations, supplies USDC in Earn, and accrues a portion of trading fees. DefiLlama describes it as fully community-owned.
How does HLP make money?
Depositors share in the vault's results. Public sources say HLP accrues a portion of trading fees, and that its strategies include market making and liquidations. Actual returns are not stated publicly and can be negative, so check the live figures in the app.
Can I lose money in HLP?
Yes. Market making and liquidations can lose money in volatile markets, and the vault is exposed to the performance of the Hyperliquid exchange. DefiLlama lists no audits for the protocol, which adds to the uncertainty.
Which token is linked to HLP?
Public sources list HYPE as the token linked to the protocol on DefiLlama. They do not say whether HLP deposits are made in HYPE. Check the app for the accepted deposit asset and terms.
How large is the HLP vault?
DefiLlama shows about $151.3 million in TVL, down 12.2% over the past seven days. TVL changes with deposits, withdrawals and vault performance, so the figure moves often.
Are there lock-ups or withdrawal limits?
The project does not describe deposit minimums, lock-ups or withdrawal rules. These are not published in the data used here, so users should read the terms in the Hyperliquid app before depositing.
Compare
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How we checked
Sources
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