As mentioned before, one of the three main lines for the future is stablecoins, and I feel that stablecoins will be the biggest main line because they are the most useful and can reach the most users. Other DEFI and RWA will more or less be related to stablecoins.

HYPE has also started to expand its business line, launching its stablecoin product, hwHLP. In simple terms, it is a 'yield token'; when you deposit USDe or USDT0, you can exchange it for hwHLP.

The token is linked to the HLP treasury earnings on the Hyperliquid platform, including market making, clearing, and transaction fee sharing.

Will hwHLP gain adoption? Yes.

First, because of its low volatility and real earnings. The earnings from the HLP treasury mainly come from platform fees, which are relatively stable and not reliant on speculative trading. Moreover, as the scale of the treasury grows, its volatility continues to converge, making this risk-return ratio rare in DeFi.

Second, there is an improvement in capital efficiency. After the tokenization of hwHLP, what you hold is no longer 'locked-up capital' but a certificate that can be liquid and traded. For example, on lending platforms like Hyperlend, you can directly use hwHLP as collateral to borrow stablecoins, and the borrowed money can be reinvested back into the treasury for leverage, earning more yields. This solves the old problem of 'idle capital' in traditional DeFi mining.

Third, there are natural application scenarios. The HyperEVM ecological projects will actively support hwHLP, and Hyperlend will also support it as collateral, which means hwHLP has application scenarios right from its inception.

hwHLP has a positive impact on HYPE's ecosystem. It essentially creates a 'traffic entrance' for the HLP treasury. More funds may flow into the treasury through it, increasing the platform's TVL. The larger the treasury, the stronger the market making and clearing capabilities, leading to a better trading experience and forming a positive cycle. Hyperlend uses hwHLP as collateral, users pledge hwHLP to borrow money with leverage, and the protocol earns interest differentials, benefiting both parties.

There is also a positive impact on HYPE's token price. hwHLP may bring in more treasury deposits, thus positively impacting trading volume, which will increase transaction fees and accelerate HYPE's buyback and burn.

hwHLP represents a trend: DeFi yields are being 'tokenized'. It packages complex market-making strategies into simple tokens, lowering the threshold for ordinary users to participate in professional strategies.