Harmonix, a protocol on Hyperliquid, provides opportunities to earn double digit yield on stablecoins by utilizing an automated delta neutral strategy. While earning, depositors will also pick up rewards in the form of Harmonix Points, leading to a token airdrop allocation in future. Various other vaults are also available, some offering a range of points rewards related to other protocols, and a HYPE vault is gaining attention, although that one is not yet publicly open.
Hyperliquid continues to be one of the strongest crypto performers outside of Bitcoin, and the Harmonix platform in the Hyperliquid ecosystem offers some great returns on stablecoin deposits, along with several other interesting-looking options for users to earn on their assets.
So today, let’s recap why Hyperliquid in general is so interesting, and take a walk through what Harmonix is and how to use it.
Why Is Hyperliquid Performing So Well?
To learn about how Hyperliquid operates (and look at another great DeFi protocol) please read this earlier guide about bridging across and using the Hyperbeat platform.
In summary though, the Hyperliquid ecosystem is split into two parts, Hypercore and HyperEVM, of which Hypercore is where you’ll find the Hyperliquid perps DEX, and HyperEVM is where more general purpose apps are being deployed.
31% of the HYPE token was airdropped to early Hyperliquid users last November and there are further allocations still to be distributed. However, firm details of how future drops will take place have not yet been clarified, so we don’t have dates and it’s not clear what kind of activity–either on Hypercore or HyperEVM–will earn an allocation.
However, since HyperEVM apps are, as we’ll see today, offering solid yields and points rewards, it can make sense to experiment with them, rack up some usage, and gain returns anyway.
Overall, during a cycle in which alts have underperformed compared to BTC, Hyperliquid is one of the rare exceptions, as the HYPE token hit an all-time high market cap of $14 billion in June and is currently trading at a $13 billion market cap.
What Is Harmonix?
Compared to centralized platforms, Hyperliquid, which specializes in perps trading, offers high funding rates. This makes it an attractive protocol on which to execute delta neutral strategies that are price agnostic and generate returns from those funding fees.
And this is where Harmonix comes in, as it offers automated delta-neutral strategies that allow users to simply deposit assets and earn yield. Additionally, users can earn points on the platform in order to gain eligibility for a future airdrop of the protocol’s yet-to-launch token.
And importantly, Harmonix is growing fast, announcing last month that it had reached over 260,000 active accounts.
However, before interacting with Harmonix, please be aware that the usual DeFi risks are present, including the possibility of smart contract exploits, frontend attacks, stablecoin de-pegs, and high volatility. For more information on risks and security, take a look also at the Harmonix official documents.
How to Use Harmonix
To get started with Harmonix let’s check its USDC Vault, which has a TVL of $5.73 million and offers an APY, currently, of 15.23%.
This one requires you to deposit USDC on Arbitrum (Hyperliquid uses native…
