What is HypurrFi?
HypurrFi is a lending and borrowing protocol built on Hyperliquid. It brings collateralized lending to Hyperliquid's high-performance infrastructure, enabling users to borrow against their assets while accessing the chain's native liquidity.
How it works
HypurrFi operates through Mewler markets — isolated lending pools where each market has specific collateral and borrow assets. This isolation means risk from one market doesn't affect others.
Users deposit collateral into a Mewler market and can borrow against it up to the market's loan-to-value ratio. Interest rates adjust based on utilization — higher demand for borrowing increases rates, which attracts more suppliers.
The protocol leverages Hyperliquid's native infrastructure for fast settlement and efficient liquidations. This is particularly useful for volatile collateral types where quick liquidation prevents bad debt.
The curator model
Like Morpho, HypurrFi uses curators to manage market parameters. Curators decide which assets to accept as collateral, set loan-to-value ratios, and configure oracle sources.
Clearstar operates as a curator on HypurrFi, creating vaults that allocate capital across Mewler markets we've vetted. Depositors access our curated selection rather than managing individual market exposure.
Hyperliquid's sub-second finality enables responsive liquidations and tight spreads. HypurrFi inherits these properties, making it well-suited for lending against volatile assets.
Supplying and borrowing
Suppliers deposit assets into Mewler markets and earn yield from borrower interest payments. Each market has independent utilization and rates — you choose which markets to supply.
Borrowers post collateral and borrow against it. If collateral value falls below liquidation thresholds, positions get liquidated to protect lenders. Liquidators receive a discount on collateral as incentive.
Risks to understand
Smart contract risk exists with any DeFi protocol. HypurrFi is newer than established lending protocols, which means less battle-tested code.
Chain risk is relevant because HypurrFi runs on Hyperliquid, a relatively new L1. Issues at the chain level could affect all protocols built on it.
Liquidity risk can affect withdrawals. During high utilization, you may need to wait for repayments before withdrawing supplied assets.