HLP0

HLP0 is a zero-fee public good protocol on Arbitrum that wraps USDC deposited into the Hyperliquidity Provider (HLP) vault into HLP0, an interest-bearing, omni-chain token (LayerZero OFT standard) representing HLP shares. Users mint HLP0 with USDC and earn yield from the underlying HLP strategy plus active liquidity management and yield farming, while the tokenized wrapper enables lending, leveraging, and cross-chain DeFi use cases not possible with raw HLP shares.

HLP0 is a wrapper token on Arbitrum. You deposit USDC into a vault and receive HLP0 in return. HLP0 automatically earns yield for you, and it can be used across different blockchains.

The protocol charges no fees — all earnings go straight to HLP0 holders. The value of HLP0 grows over time through a periodic "rebase" (a mechanism that increases how much USDC each HLP0 is worth).

Where does the yield come from? Four main sources:

• Base HLP strategy — returns from the main Hyperliquidity vault's trading and liquidity operations on Hyperliquid.
• AMO arbitrage — automated trading that captures price differences between markets.
• DEX liquidity pools — the protocol places HLP0 into trading pairs (HLP0/USDC and HLP0/stablecoin pairs) on several exchanges (Blackhole, Ramses Exchange on Arbitrum and Hyperliquid, Pharaoh Exchange, Shadow Exchange), earning swap fees and any bonus token rewards.
• Yield recycling — earnings are reinvested (compounded) so that your returns can grow faster over time.

HLP0 can also be bridged to other blockchains via LayerZero's OFT standard. This lets you use HLP0 in lending and farming on other networks, creating extra yield beyond what the base strategy provides.

Minting HLP0 (turning your USDC into HLP0) happens instantly. But redeeming HLP0 back to USDC requires a waiting period of 4 to 7 days.

There is also a points program: you earn 100 points just for holding HLP0 on any chain, and 250 points for providing HLP0 liquidity on partnered DEXs.