In the fast-paced world of decentralized finance (DeFi), Hyperliquid is making waves with its innovative ecosystem. A recent thread from research analyst Shaunda Devens at Blockworks Research highlights two standout projects: Felix Protocol and HyperLend. These lending platforms are not just riding the Hyperliquid hype—they're building sustainable value while offering enticing opportunities for users, including potential airdrops. Let's break it down in simple terms, especially if you're new to this space.

Hyperliquid recently set a high bar with its 31% airdrop to the community, emphasizing a strong focus on rewarding participants. An airdrop, for the uninitiated, is like free tokens distributed to users based on their activity or holdings—think of it as a loyalty program on steroids. Devens suggests that ecosystem projects like Felix Protocol and HyperLend could follow suit, potentially offering even larger allocations compared to similar drops on Solana.

Why Lending on Hyperliquid Stands Out

Drawing parallels to Solana's success stories like Jupiter and Kamino, which dished out billions in airdrops despite smaller user allocations, Hyperliquid's points programs could yield up to 3.9 times larger rewards if they match the platform's 33% precedent. Points programs are essentially ways to earn credits for using the platform, which might convert to tokens later.

What's particularly appealing here is the low-risk entry point. By participating in lending, you can earn yields (interest on your deposits) while racking up points for potential upside. This is cleaner than speculative trading, as it combines steady income with airdrop lottery tickets.

Spotlight on Felix Protocol

Felix Protocol has exploded in popularity within Hyperliquid's HyperEVM (a high-performance Ethereum Virtual Machine variant). Its total value locked (TVL)—the amount of assets deposited into the protocol—jumped from $28 million to nearly $400 million in its core lending product. Built on a modular design, Felix operates in three layers:

• Layer 1: Curates vaults using Morpho Blue's peer-to-peer markets for efficient lending and borrowing.
• Layer 2: Introduces feUSD, a stablecoin inspired by Liquity V2. Users lock assets like uBTC or HYPE to mint feUSD, with a current supply of $71 million.
• Layer 3: USDHL, a stablecoin backed by U.S. Treasury bills via M0 Labs, offering around 4% yield redistributed to users.

This cat-themed protocol (nod to the meme culture with its Felix the Cat vibes) isn't just fun—it's profitable. Revenue streams include take rates on reserves (estimated $3.5 million annualized) and fees from its collateralized debt position (CDP) product ($2.8 million annualized). CDPs let you borrow against your collateral, similar to a crypto loan.

HyperLend: The Secure Lending Fork

On the other side, HyperLend is a "friendly fork" of Aave V3, meaning it's built on Aave's proven tech but tailored for Hyperliquid with a security-first approach. It shares 10% of revenues with Aave's DAO and allocates portions of its token supply to supporters.

Key features include conservative risk parameters vetted by experts like BlockAnalitica, ensuring assets are utilized efficiently without excessive risk. Isolated markets—borrowed from FraxLend—keep risks contained by pairing specific collaterals with borrow assets. This setup supports listing edgier assets safely and powers many strategies in the ecosystem.

HyperLend's estimated annualized revenue? A solid $5.1 million, assuming a 20% take rate. Using industry averages, both protocols could command market caps around $200 million each.

Real-World Strategies and Returns

To put theory into practice, the thread references live tests of strategies across both platforms, from passive lending to more advanced looping techniques (borrowing and re-depositing to amplify yields). For detailed returns and assumptions, check out the full report on Blockworks Research.

In the meme token world, where volatility reigns, these lending protocols offer a more stable way to engage with Hyperliquid's ecosystem. Felix's meme-inspired branding adds a fun layer, attracting the community-driven crowd that powers many blockchain successes.

If you're looking to dip your toes into Hyperliquid DeFi, starting with Felix or HyperLend could be a smart move—earn yields today, chase airdrops tomorrow. Keep an eye on the original thread for updates, and remember, always do your own research in crypto!