Product Mechanics

Strategy

WHLP deposit and withdrawal flow

WHLP automates the process of depositing to HLP while providing users with a transferable, DeFi-compatible token.

The strategy involves:

1. Multi-Asset Deposits: Accept USDHL, USDT0 and other assets on HyperEVM

2. Bridging: Bridge funds to HyperCore and convert to USDC at optimal prices

3. HLP Deposit: Deposit USDC to HLP through automated multisig operations

4. Yield Generation: Earn from trading fees, funding rates, and trader losses

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Technical Implementation

Deposit Flow

1. User Deposits: Users deposit USDT0 and other assets on HyperEVM through distributor frontends

2. Token Issuance: Users receive WHLP tokens representing their proportional vault share

3. Asset Conversion: Manager bridges deposited funds and sets limit orders to convert to USDC

4. HLP Deposits: Automated deposits USDC to HLP every 24 hours

Withdrawal Mechanics

Withdrawal Flow

1. Withdrawal Request: Users request WHLP redemption at any time

2. Daily Processing: Parts of the total NAV can be withdrawn daily to fulfill user withdrawals

3. Asset Conversion: Manager converts USDC to requested stablecoin

4. Bridge & Distribution: Assets bridged to HyperEVM and distributed to users

Withdrawal Limits

• Standard Withdrawals: Immediate processing when sufficient HyperEVM liquidity exists

• Daily Limit: Maximum 20% of total deposits processable within 24 hours

• High Demand: Up to 5 days processing time when requests exceed 20% of vault deposits

wHLP → USDT0

Overview wHLP withdrawals follow the same model as LHYPE: allowance-based, time-limited, and resolved by Paxos.

Key Mechanics

• Request submission:

  • Submitting a new withdrawal replaces the previous request.

  • Only one active request is allowed at a time (USDT0).

• Asset handling during withdrawal:

  • wHLP remains in your wallet while the request is pending.

  • Once resolved, wHLP is burned and you receive USDT0.

• Cancellation:

  • You can cancel a withdrawal by removing the allowance.

• Timeouts:

  • Withdrawal requests expire after 5 days.

• Settlement:

  • Requests are solved by the Paxos team.

• Fees:

  • A 4 bps withdrawal fee applies to prevent excessive arbitrage.