🔎Hyperliquid S2 airdrop incoming?
weekly valuable insights
Today’s email is brought to you by Coinshift - The first onchain treasury network
Earn high yields via Pendle’s csUSDL pool!
In today’s newsletter:
🔎How to farm Hyperliquid’s S2 airdrop
📊 On-chain alpha
😂 Crypto meme of the week
🗞️ The latest DeFi news
🔎How to farm Hyperliquid’s Season 2 airdrop
It’s safe to say that Hyperliquid’s first airdrop was a massive success.
At its peak, the total value of the HYPE airdrop almost reached $10 billion!
For many of its users, it was life-changing, so rumors started spreading that there could be a 2nd Hyperliquid airdrop in the future.
And it looks like the chances of this happening just skyrocketed.
A few days ago, the points page UI was updated on the Hyperliquid testnet.
While a new points program hasn’t been officially announced yet, I think there’s a good chance one will be announced soon, considering the testnet UI update.
So in this issue, I wanted to cover 3 strategies for farming the next HYPE airdrop while also earning other rewards at the same time👇
1. Deposit funds into Upshift’s Hyperbeat Ultra uBTC vault
If you hold BTC, this might be the best way to position yourself for Hyperliquid’s Season 2 airdrop using it as you’ll earn a lot of points.
Upshift is an institutional DeFi yield platform.
With the following strategy, you’ll earn: Upshift points, Hyperlend points, HyperSwapX points, Hypurrfi points, and Hyperbeat points at the same time.
Here’s how:
Go to HyperUnit and deposit native BTC to get uBTC on Hyperliquid L1 (by doing this, you’re essentially bridging BTC to Hyperliquid)
Deposit uBTC in the Hyperbeat Ultra uBTC vault on Upshift
After that, Upshift will automatically deploy your uBTC across major Hyperliquid ecosystem dApps in order to earn yield and airdrop points.
Obviously, you will likely also qualify for Hyperliquid’s S2 airdrop in this way in case there will be one.
2. Trade perps using DeFi App’s Hyperliquid integration
DeFi App is a DeFi SuperApp that abstracts away the complexities of crypto.
Its goal is to simplify the onboarding process and provide a user-friendly decentralized alternative to centralized exchanges.
Just a few days ago, DeFi App integrated Hyperliquid to enable trading perps directly from its app.
By trading perps using the DeFi App website, you’ll earn at the same time:
DeFi App’s XP points, which will qualify you for its future airdrop
Hyperliquid’s S2 airdrop points (assuming the Hyperliquid team will launch a Season 2 points program and incentivize perps trading)
If you trade perps, this might be a good way to get rewarded for your trading activity.
Before I cover other yield strategies, here’s an overview of Coinshift, the gateway to RWAs and DeFi:
Together with Coinshift
csUSDL x Pendle: The high-yield DeFi Strategy
Some amazing yield opportunities are available in DeFi right now.
And one of my favorite ones involves using Coinsift - a capital growth, payments, and accounting platform backed by Consensys.
csUSDL, Coinshift’s yield-bearing stablecoin backed by US T-bills, just went live on Pendle a few days ago.
This enables you to capitalize in 3 ways:
Lock in a fixed ~11% APY by buying PT-csUSDL
Get leveraged exposure to the upcoming Coinshift Airdrop by buying YT-csUSDL
Provide liquidity to the csUSDL pool to earn a base yield + Shift points on your stablecoins
Here’s where things get very interesting:
Every YT-csUSDL generates 23 SHIFT points per day.
According to Coinshift, its airdrop should happen in ~86 days.
Considering the current number of SHIFT points and the recent daily points growth of 1,000,000,000, the total no. of points should be ~108 billion.
If $SHIFT launches at a $150M FDV with a 5% token supply airdrop for early supporters, each point should be worth $0.0000694.
Based on the current price of YT-csUSDL, this would mean a 500% return in 3 months for YT-csUSDL holders!
Obviously, this is not guaranteed, and it’s based on several assumptions.
But whether you’re a high-conviction degen or a conservative investor, there’s a way for you to capitalize using the csUSDL pool on Pendle.
Check out the csUSDL pool on Pendle here!
Another strategy for farming Hyperliquid’s potential S2 airdrop is this one:
3. Deposit HYPE on Hyperlend and borrow against it
Hyperlend is one of the most popular borrowing platforms on Hyperliquid L1.
Using it, you can borrow assets against:
HYPE
wstHYPE (a staked version of HYPE by @stakedhype)
UBTC
UETH
(If you don’t have any funds on Hyperliquid L1, you can deposit funds using the Hyperliquid official website and then send them to HyperEVM)
Hyperlend also has a points program live.
In case you hold HYPE, my suggestion is this:
Stake it for wstHYPE on stakedhype.fi, and create a loop position by borrowing HYPE, which you can stake again for wstHYPE and deposit as collateral.
The rewards for staking HYPE are currently quite low, but rumors are circulating that HYPE stakers will be eligible for the next Hyperliquid airdrop.
These are all the strategies that I wanted to share today.
Personally, I believe there’s a high chance there will be a 2nd Hyperliquid airdrop. But it’s important to keep your expectations in check.
The 2nd airdrop will likely be much smaller than the 1st one.
But it might still be worth farming it, especially if you’re doing it in a way that allows you to farm multiple airdrops at once.
On-chain Alpha🔎
Hyperliquid L1 TVL surged 142% in the last 30 days
Crypto Meme😂
The latest developments in DeFi
Ethereum completed the Pectra Upgrade
GMX announced plans to become a multichain perpetual exchange through its partnership with LayerZero
Phantom introduced Gasless Swaps on Solana
Hyperliquid announced plans to enable permissionless perp listing
Soul Protocol, an omnichain liquidity layer that connects all major money markets in one platform, was launched on testnet
Superseed, a blockchain that enables self-repaying loans, launched its token $SUPR
Defi App integrated Hyperliquid to enable perps trading
Resolv Labs announced its tokenomics and allocated 10% of its token supply to its first airdrop
Stripe enabled sending and receiving payments in stablecoins such as USDC
ZKsync became fully EVM Equivalent
Chainlink announced a series of upcoming airdrops for LINK stakers
Ethena's USDe went live on Hyperliquid Exchange and HyperEVM
Lombard partnered with Eigenlayer to turn LBTC into a restaking asset
Ostium enabled shorting/longing stocks with up to 100x leverage
Lido released the Lido V3 Testnet, which enables builders to create tailored staking solutions
That’s all for this week!
Until next time,
The DeFi Investor
Want to sponsor this newsletter?
Please send me a DM on Twitter (X). I have a sponsorship deck that I can send you.