Security & Risk Management

loopedHYPE adheres to institutional-grade security by combining robust protocols, multi-layer oversight, and swift emergency response.

  1. Protocol Security Measures

  • Integration is limited to protocols thoroughly audited and approved by the strategy committee.

  • Real-time monitoring catches anomalies immediately, triggering an emergency response within 30 minutes.

  • We only integrate protocols with direct partnerships to ensure clear communication and reliable oversight.

  1. Strategy Security Measures

  • Every proposed strategy is formally reviewed and approved by the committee prior to deployment.

  • We eliminate depeg risks by relying exclusively on lending protocols that use on-chain exchange ratios.

  • No dollar-based leverage is employed, reducing exposure to currency fluctuations.

  1. Operational Security Measures

  • Ultimate custody of user funds remains within the smart contract, preventing any external party from accessing assets.

  • Updates to vault configurations require a multi-signature process, involving team members from both Nucleus and Staking Rewards.

  • Every signatory must remain accessible within a 30-minute window for timely execution of critical changes.

  • The Risk Curator has only access to whitelisted smart contract functions from the Strategy Committee, and never has access to any funds.


Audit Reports

Nucleus Boring Vault Infrastructure is audited multiple times by independent auditors for the Ethereum EVM implementation.

The HyperEVM implementation matches the Ethereum implementation 1:1.


Vault Infrastructure

loopedHYPE uses an institutional-grade vault infrastructure provided by Nucleus, in collaboration with Staking Rewards.

The vault infrastructure uses Nucleus' BoringVault framework, an ERC20 token contract that custodies all deposit assets and exposes permissions for minting and burning the vault shares.

Contract addresses used in the LHYPE deployment include:

Ticker
Contract
Address

LHYPE

BoringVault

0x5748ae796AE46A4F1348a1693de4b50560485562

LHYPE

Teller

0xFd83C1ca0c04e096d129275126fade1dC45BF4F0

LHYPE

Manager

0xe661393C409f7CAec8564bc49ED92C22A63e81d0

LHYPE

Accountant

0xcE621a3CA6F72706678cFF0572ae8d15e5F001c3

LHYPE

RolesAuthority

0xDc4605f2332Ba81CdB5A6f84cB1a6356198D11f6

LHYPE

CommunityCodeDepositor

0x6e358dd1204c3fb1D24e569DF0899f48faBE5337

For the RolesAuthority contract, various addresses take on specific roles, as outlined below:

Role Type
Description
Address

Strategist Role (1)

This role can call the ManagerWithMerkleVerification contract.

0xcb8fa722b2a138fac6b6d60013025e2504b9b753

Manager Role (2)

This role is granted to the ManagerWithMerkleVerification contract.

0xe661393C409f7CAec8564bc49ED92C22A63e81d0

Teller Role (3)

This role is granted to the TellerWithMultiAssetDeposit contract.

0xFd83C1ca0c04e096d129275126fade1dC45BF4F0

Rate Provider Role (4)

This role is granted to the EOA that can update the exchange rate on the Accountant.

0x1755397BEc366a1e1160d8aE0106C60E7e344B56

Solver Role (5)

This role is granted to the solvers that can withdraw assets and fulfill user withdraw requests.

0x54563d1DdB55b029D6D7AcD89C633af746823092

Pauser Role (6)

This role is granted to the pauser contract that can pause the contract in an incident response scenario.

0x858d3eE2a16F7B6E43C8D87a5E1F595dE32f4419

Tax Reports

LHYPE is a value-accruing token based on the tax-friendly cToken model.

loopedHYPE’s Protocol Conversion Rate, the internal rate that governs how LHYPE is valued compared to HYPE at minting and redemption, programmatically changes over time to accurately represent the value of staked HYPE and accumulated rewards.

loopedHYPE's Protocol Conversion Rate, set automatically at the protocol level, operates independently from any market trading rates of LHYPE. Tax & Accounting Reports can be requested at [email protected] for any staked amounts of $1m+

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