Hyperstable CDP Review 2026: USH Borrowing on HyperEVM

Hyperstable CDP is a crypto-backed, over-collateralized and decentralized stablecoin protocol built on HyperEVM, the EVM environment on Hyperliquid. Users borrow its stablecoin, USH, against deposited collateral. It has been listed since May 2025 and uses PEG as its native token.

The app goes beyond basic minting. Its menu covers borrowing, earning, locking, voting, rebates, referrals, swaps, liquidations and analytics, and it includes a migration tool for holders of an earlier aPEG token. The dashboard also shows a total value locked of roughly 156,000 US dollars.

That makes it a small, early-stage protocol. The feature set is wide for its size, but low liquidity and a short history are the main things to weigh.

Hyperstable is a collateralized debt position (CDP) protocol. A user deposits crypto collateral into a market and borrows USH against it. Because the debt is smaller than the collateral value, the system is over-collateralized, which is what is meant to keep USH worth about one US dollar.

Each position has a health factor and a liquidation price. If collateral falls in value so the health factor drops too far, the position can be liquidated by others, which repays the debt and protects the system. Users manage this by adding collateral or repaying USH.

The app splits activity into Core Markets, where USH is minted, and Isolated Markets, where borrowing and lending are kept separate. Users can also stake in liquidity pools, lock the PEG token to vote, and collect PEG, voting and rebase rewards.

Hyperstable does not publish a single fee schedule on its app front page. What it shows are variable rates: the dashboard displayed a lowest isolated borrow rate of 0.02%, a top lending APR of 0.03% and a top liquidity APR of 41.67% at the time of capture. These move with market conditions.

Borrow APR is shown per market before you confirm a position, and the Analytics section and docs are where users would check current rates and any protocol or liquidation fees. Normal HyperEVM gas costs also apply to each transaction.

Two audits are listed for the protocol, but the auditors and findings were not detailed in the material reviewed. The app is non-custodial in the usual DeFi sense: users interact from their own wallet, and the main risks are smart-contract bugs, oracle errors, liquidation mechanics and a USH depeg.

Total value locked is small and the protocol is young, so it has had little time to prove itself in volatile markets. The team, any admin or upgrade controls and insurance arrangements are not published on the app page. Check the docs and audit reports directly, and only use funds you can afford to lose.

Hyperstable CDP is for experienced DeFi users on Hyperliquid's HyperEVM who understand liquidation risk and want to borrow USH or chase incentive-driven yields. It is not suited to beginners, to anyone who needs deep liquidity, or to those who want a long-proven stablecoin.