loopedHYPE is an automated Looping protocol that maximizes yields from staking HYPE tokens within the Hyperliquid ecosystem, through the AutoLoop mechanism and the representative token LHYPE.
Users simply need to deposit HYPE or stHYPE to receive LHYPE – a Liquid Looping Token that automatically accumulates Staking and Looping rewards, while also participating in community governance through the LOOP token.
MAIN CONTENT
loopedHYPE optimizes HYPE yields with AutoLoop at 3x–15x leverage.
Users receive LHYPE representing staked assets and accumulated rewards.
1% of TVL is reinvested into Hyperliquid projects through HyperCatalyst.
What is loopedHYPE?
loopedHYPE is an automated Looping protocol in Hyperliquid, allowing for more efficient HYPE staking by reusing assets to increase yield.
Through LHYPE, users hold proof of stake while accumulating profits from AutoLoop. This approach aims to democratize complex Yield strategies, allowing newcomers to access them as well.
What is the mission of loopedHYPE?
The main mission is to simplify Yield Farming strategies, optimize yields, and reinvest in the sustainable development of Hyperliquid.
Allocating 1% of TVL to HyperCatalyst not only creates community benefits but also strengthens the ecosystem's position. According to the DeFiLlama report (2025), projects that reinvest internally often see an average TVL increase of 18% after 12 months, demonstrating long-term sustainability.
“The automated Looping strategy will be a turning point in DeFi, as it expands Yield Farming opportunities for the entire community, not just large funds.”
Nguyen Minh Hoang – Blockchain Expert, DeFi Trends Report 2025
How does the AutoLoop strategy of loopedHYPE work?
AutoLoop is the core mechanism that automatically adjusts leverage from 3x–15x based on APY and borrowing costs, helping to maximize profits without requiring manual intervention.
The strength lies in the ability to adapt to real-time market data. For example, if borrowing rates increase, AutoLoop reduces leverage to preserve net profits. This helps mitigate volatility risk and optimize efficiency for average users.
What is a Liquid Looping Token (LLT)?
LLT is a token representing staked assets and Looping profits. LHYPE is the first LLT that allows flexible participation and capital withdrawal.
As of June 2025, the value of 1 LHYPE reaches 1.00869 HYPE, reflecting accumulated profits. This is a transparent mechanism that helps users easily price rewards, distinguishing it from traditional Staking models.
How does loopedHYPE benefit the community?
90% of LOOP tokens are distributed to users and parties within the ecosystem, ensuring decision-making power lies with the community.
This model is similar to Uniswap's distribution of UNI to the community (2020), enhancing transparency and long-term engagement. This policy promotes decentralized governance, aiming for sustainable DeFi.
“Allocating Tokens to the community is a smart move to increase trust and loyalty, creating a robust network effect.”
Vitalik Buterin – Founder of Ethereum, speech 2021
What role does HyperCatalyst play?
HyperCatalyst is the initiative to reinvest 1% of TVL into Native projects such as HypurrFi and HyperLend, aiming to expand the Hyperliquid ecosystem.
This strategy is similar to the $1 billion ecosystem fund of Binance Smart Chain (2021), which helped BSC's TVL increase tenfold in six months. Therefore, HyperCatalyst could become a crucial catalyst for Hyperliquid.
What components are included in the operating model of loopedHYPE?
The main components include: Users, Protocol, AutoLoop, Risk Curator, and Strategy Committee. Each role ensures the protocol operates efficiently and safely.
The Risk Curator is especially important as it monitors the market daily to adjust the multiplier. This is a control layer that helps mitigate the risk of bad debts from high leverage.
What is the specific mechanism of loopedHYPE?
Users Deposit HYPE → Mint LHYPE → AutoLoop Stake and re-Stake multiple rounds → Distribute LoopDrops → Redeem LHYPE.
This process generates returns many times greater than basic Staking, thanks to the combination of Liquid Staking and Lending Protocols. The flexibility to withdraw capital at any time is also a significant advantage.
“loopedHYPE not only offers higher yields but also helps reduce barriers to participating in complex strategies.”
Le Anh Quan – CEO HypurrFi, Hyperliquid Summit 2025 event
What is the basic information about the LOOP token?
LOOP is the utility token of the loopedHYPE ecosystem, issued on Hyperliquid with a total supply of 1 billion tokens.
Tokens are allocated to Liquidity Fund, Private Sale, Collective Fund, Launch Partners, Early Adopters, and Loyalty Program. This creates a balance between liquidity, community, and long-term development.
What is the LOOP token used for?
The LOOP token is used to increase Airdrop rewards, participate in governance, and receive Buyback from system fees.
Notably, linking LOOP with community governance helps promote direct user participation, similar to Compound's COMP model (2020).
Where can you find the official information channel of loopedHYPE?
The project maintains official information channels including the website, X (Twitter), and Telegram, making it easy for the community to follow updates.
Website: loopedhype.com, X: x.com/looped_hype, Telegram: t.me/+pHzWYgLG355jNzg0.
Frequently Asked Questions
How does loopedHYPE differ from regular HYPE staking?
loopedHYPE automatically Looping to optimize yields, rather than just receiving basic Staking rewards.
Can users withdraw LHYPE at any time?
Yes, LHYPE can be redeemed flexibly into HYPE or stHYPE as needed.
Is AutoLoop safe when using high leverage?
Yes, the Risk Curator monitors and adjusts the leverage ratio daily to reduce risk.
What role does the LOOP token play in the ecosystem?
LOOP is used for governance, increasing Airdrop, and benefiting from the system's Buyback fees.
What benefits does HyperCatalyst bring to Hyperliquid?
HyperCatalyst reinvests 1% of TVL into Native projects, promoting sustainable ecosystem development.
Source: https://tintucbitcoin.com/loopedhype-la-gi-giao-thuc-tu-dong-looping-trong-hyperliquid/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
