Everything has taken a bit longer than initially forecast due to a shortage of HD-appropriate assets, but we are rock ‘n roll now. JAAA/SPXA/nALPHA are live and the launch pipeline is deeeeep.
Thank you for your patience. This will be well worth the wait.
RWA holders shouldn't have to sell to get liquidity.
Hyperdrive: NAV-priced borrow/lend for tokenized funds, live on Base and coming to a chain near you…
Tokenized funds can't always be redeemed instantly. Most lending markets assume you can dump collateral into an AMM.
@hyperdrivedefi prices at NAV and handles redemption inside the market.
Hold the fund. Borrow USDC. Don't sell.
nALPHA is officially shifting into hyperdrive with @hyperdrivedefi RWA Markets on @base.
Borrow against your nALPHA or lever up in one step, priced at NAV. When you exit, your debt clears instantly while the redemption settles in the background.
There are more ways than ever before to put your real-world assets to work onchain. 👇
Sphere CM retweeted
nALPHA is officially shifting into hyperdrive with @hyperdrivedefi RWA Markets on @base.
Borrow against your nALPHA or lever up in one step, priced at NAV. When you exit, your debt clears instantly while the redemption settles in the background.
There are more ways than ever before to put your real-world assets to work onchain. 👇
Hyperdrive RWA Markets are here!
For lenders:
→ 50K USDC in incentives over 6 months to start
For RWA holders:
→ Loop/borrow at the highest LTVs
→ No AMM liquidation wicks
Assets include JAAA, SPXA and nALPHA across the @centrifuge, @plumenetwork, and @base ecosystems.
Sphere CM retweeted
Each lending market has their own design philosophies.
Hyperdrive RWA Markets simply uses the asset's NAV for pricing, completely eliminating oracle or DEX illiquidity risks.
Check us out at v2.hyperdrive.finance/market…
Be extremely careful with the Morpho markets you use for looping.
Earlier today, I took a closer look at the sUSDe/PYUSD market on Morpho, which has $97M in outstanding loans.
What caught my attention is that this market uses a market price oracle instead of an exchange rate oracle.
The difference between them matters a lot:
• A market price oracle liquidates based on the live market price of the collateral deposited
• An exchange rate oracle liquidates based on the NAV price of the collateral deposited
Why is this relevant?
Imagine another October 10-style crash happens (pls no), and USDe briefly depegs on DEXs/CEXs.
Highly leveraged sUSDe positions in this Morpho market could get liquidated in this scenario even if USDe remains fully backed.
We've seen fully backed stablecoins briefly depeg before, so this isn't just some imaginary risk.
With an exchange rate oracle, borrowers would be much better protected because liquidations would only happen if Ethena's sUSDe/USDe actually lose some of their backing.
This is why, as a looper, I personally would never use high leverage in a money market that relies on a market price oracle.
Most yield-bearing asset markets on Morpho use exchange rate oracles to protect borrowers, but for some reason, this one for sUSDe/PYUSD doesn't.
This is why it's important to always check the oracle type before looping.
Stay safe out there.
Sphere CM retweeted
My wife got pregnant by another man.
It's been a challenging 9 months knowing he's not my son but I'm so excited to raise him like my own.
Here's 5 things it taught me about not using Hyperdrive: 👇
Sphere CM retweeted
Hyperdrive team on Nassim Road xitter.cf/agentchud/status/21067…
Sphere CM retweeted
Rewards can now be tracked at app.merkl.xyz/opportunities/…
Hyperdrive RWA Markets are here!
For lenders:
→ 50K USDC in incentives over 6 months to start
For RWA holders:
→ Loop/borrow at the highest LTVs
→ No AMM liquidation wicks
Assets include JAAA, SPXA and nALPHA across the @centrifuge, @plumenetwork, and @base ecosystems.
Sphere CM retweeted
The fundamentals of RWA lending has changed.
Borrowers are now immune to oracle risks, AMM slippage, and predatory liquidation wicks.
Lenders receive liquidation bonuses + redemption/subscription fees on top of interest.
RWAs can now scale infinitely without AMM liquidity.
Hyperdrive RWA Markets are here!
For lenders:
→ 50K USDC in incentives over 6 months to start
For RWA holders:
→ Loop/borrow at the highest LTVs
→ No AMM liquidation wicks
Assets include JAAA, SPXA and nALPHA across the @centrifuge, @plumenetwork, and @base ecosystems.
Sphere CM retweeted
Hyperdrive RWA Markets are here!
For lenders:
→ 50K USDC in incentives over 6 months to start
For RWA holders:
→ Loop/borrow at the highest LTVs
→ No AMM liquidation wicks
Assets include JAAA, SPXA and nALPHA across the @centrifuge, @plumenetwork, and @base ecosystems.
Why? Because the downside isn't a cascade, it's a redemption.
The vault debate is mostly a liquidation debate, imo.
The user is trusting the curator's judgment about risks they can't cleanly exit. Change the liquidation model, change the debate. When collateral redeems at contractual value - no oracle, no external liquidator, no fire sale - the misjudgment issue gets mitigated.
Custody vs discretion is a real distinction but the reason vault trust is so contested is downstream of what happens at liquidation. A discretionary curator is scary bc when a market goes bad, exit depends on external liquidators, oracles, and someone unwinding into a fire sale.
My two cents on this debate is that custody and discretion are two different dimensions and should not be conflated.
Custody is about who holds the keys and therefore assets
Discretion is about who makes the investment calls on assets. Examples:
1. Custodial & non discretionary: Coinbase spot account where you decide on your own investments
2. Custodial & discretionary: hedge fund/mutual fund
3. Noncustodial & non-discretionary: self directed defi like swapping on Uniswap
4. Noncustodial & discretionary: managed onchain vault
You can give up one without giving up the other.
Much of DeFi is noncustodial because you own the keys and the assets. But the meat of the debate really is around what should be considered discretionary or not.
Vaults that are more programmatic in nature with user ability to veto any decisions would be closer to the non discretionary end to my mind vs designs where users don’t have control over subsequent decisions that are made to the product evolution