HyperAMM offers fully hedged, zero impermanent loss concentrated liquidity pools. You can deposit blue chip tokens (i.e. UBTC) as liquidity and earn trading fees without price movement risks.

Summary

• No impermanent loss, fully hedged concentrated liquidity pools.
• Deposit single token, choose your exposure either stable (delta neutral) or (delta 1).
• No manual LP position managements required like Uni V3 pools; keep it simple and passive.
• Oracle based swap with dynamic fees with liquidity imbalance, order size and future premiums conditions.
• Trades are hedged instantly within swap transaction through Hyperliquid CoreWriter.
• Only Possible on Hyperliquid.

Basic Concept

Deposited liquidity will be maintained to be 2/3 in HyperEVM and the rest 1/3 in Core, and the smart contract hedges all trades that occur instantly through CoreWriter. Hyperliquid has deep liquidity on its perpetual markets, so hedge cost is cheap enough to be compensated by trading fees on HyperAMM.

This is only possible on Hyperliquid, with it’s deep perpetual liquidity and the EVM integration.

User Flow

Deposit and Withdraw

Given UBTC-USDC bull pool,

1. Deposit 3 UBTC

   User deposits 3 UBTC and receives 3 haUBTCUSDC token (receipt LP token)

2. Rebalance to Hyperliquid Core

   1 UBTC (1/3) is bridged to Hyperliquid core, sold for USDC, deposited into perpetual account, and create long 1 BTC position to keep BTC exposure.

3. Start Market Making

   On HyperEVM, smart contracts start market making from selling UBTC for USDC, and pool earns trading fees while keeping HyperEVM liquidity balanced to fixed ratio.

4. Automated Rebalancing

   Whenever price moves and EVM and Core ratio weight diverges from ideal state, protocol automatically rebalances it; keeping users away from manual LP managements.

5. Exit

   User can withdraw BTC anytime with small withdrawal fee if there is liquidity in EVM. Also delayed withdrawal feature allows user to withdraw without fees, and protocol will secure liquidity within 3 days.

Swap