The Hyperliquid Airdrop Playbook: What to Do Before It’s Too Late

This episode unveils a comprehensive playbook for maximizing potential rewards from the rumored Hyperliquid Season 2 airdrop, focusing on capital-efficient strategies across its burgeoning ecosystem.

Anticipating the Hyperliquid Season 2 Airdrop

• The host begins by highlighting the significant wealth generated by the first Hyperliquid airdrop, with some participants reportedly achieving seven to eight-figure returns. Speculation is rife about a second airdrop, and the host provides a speculative analysis of its potential value.
• Using "back of the napkin math," the host estimates that if 5% of the token supply (50 million tokens) were airdropped to 100,000 users, the average user could receive around $18,000.
• A more optimistic scenario, mirroring the previous airdrop's 31% distribution, could yield an average of $90,000 per eligible user if 25% were distributed to 100,000 users.
• The host, drawing from the scale of the previous event, opines, "I personally think it could be as large as the last one... it's going to be significant in my opinion." He suggests that active participation, deploying more capital and volume, and interacting with multiple protocols as outlined could lead to significantly higher rewards.

Strategic Framework for Airdrop Farming

• The core strategy revolves around capital efficiency and broad ecosystem interaction, rather than simply chasing high Total Value Locked (TVL) positions where smaller players might be diluted.
• Airdrops as Customer Acquisition: The host explains airdrops as a crypto-native customer acquisition strategy. Airdrops are distributions of cryptocurrency tokens, typically for free, to numerous wallet addresses, often to incentivize usage of a new platform or protocol. "It's always used in crypto... we want people to start doing this action. So, what we're going to do is use speculation as a vehicle to get people to do this specific action."
• Hyper EVM Focus: A key area of focus is the Hyper EVM, Hyperliquid's Ethereum Virtual Machine compatible execution layer. The host notes its deflationary mechanism: "all gas fees on the network are burned." This creates buy pressure from Hyper Core (spot and perpetuals exchange) fees and deflationary pressure from Hyper EVM activity.
• Underappreciated Opportunities: The strategy emphasizes finding and engaging with less obvious protocols or using assets in novel ways, such as using receipt tokens from one protocol in another.
• Worst-Case Scenario: Even if the airdrop doesn't materialize, the strategy involves placing capital in various protocols, earning yield, and accumulating points from individual platform campaigns.

Actionable Playbook: Interacting with the Hyperliquid Ecosystem

1. Sustained Activity on Hyper Core

• The host stresses the importance of continued activity on Hyper Core, Hyperliquid's primary spot and perpetuals decentralized exchange (DEX).
• This includes ongoing trading activity, drawing parallels to the Jupiter airdrop, where "continued month over month usage of the aggregator" was a criterion.
• Strategic Implication: Maintaining a consistent presence on the foundational platform is likely to be rewarded, as Hyperliquid would want to see usage across all its products.

2. Native HYPE Staking

• Native staking of HYPE, Hyperliquid's native token, is presented as a potentially rewarding activity.
• Speculation suggests native stakers might receive airdrops from protocols launching on Hyperliquid, including HI3 (a platform for more permissionless markets).
• The host views this as a gesture of goodwill, aligning community incentives. "I think the most aligned way of doing that would be air dropping to hype stakers."
• How to Stake: Users can stake via the Hyper Core UI, selecting validators like USDT0, Luga Nodes, or boutique firms like ASXN, considering uptime and commission rates.
• Caveat for Limited Capital: For those with limited capital, the host advises skipping direct native staking due to locked liquidity and opting for Liquid Staking Tokens (LSTs) instead.

3. Strategic Bridging to Hyperliquid

• Bridging assets into the Hyperliquid ecosystem, particularly the Hyper EVM, is crucial for increasing TVL and demonstrating engagement.
• Hyperunit: A unique bridge allowing transfer of native Bitcoin, ETH, SOL, and even "Fartcoin" to Hyperliquid. The host suggests this could yield a Unit airdrop alongside Hyperliquid points.
• Hyperswap Bridge: The native bridge of the Hyperswap DEX.
• USDT0.TO Bridge: Tether's omnichain USDT bridge. The host notes, "I'm seeing a lot of boosted points on anything to do with USDT0," suggesting Tether's interest in increasing USDT exposure on Hyperliquid.
• Other options include the native Spot to EVM bridge and Hybridge (though the host is unfamiliar with the latter).
• Actionable Insight: Utilizing multiple, ecosystem-native bridges can signal deeper engagement and potentially qualify for rewards from the bridge protocols themselves.

4. Utilizing Liquid Staking Tokens (LSTs)

• LSTs (Liquid Staking Tokens) represent staked assets that remain liquid and can be used in other DeFi protocols. This is recommended for capital efficiency.
• Benefits include increasing on-chain TVL, enhancing DeFi composability, and gaining stake weight without sacrificing liquidity.
• Staked Hype (stakedhype.fi): Issues `stakeh` token. The platform indicates "my rewards coming soon," hinting at incentives.
• Loop Hype (from Staking Rewards team): Issues `LHype` token. Their `LOOP` token has a KPI-driven release, with phase two unlocking more tokens at 50 million TVL or on June 6th.
• Strategic Consideration: Staked Hype currently offers more collateral options across DeFi protocols, but exploring both LSTs can diversify exposure.

5. Engaging with Lending and Borrowing Markets

• Lending and borrowing protocols are significant TVL drivers in the Hyperliquid ecosystem, with platforms like Hyperlend, Felix, Hyperfi, and Moro collectively holding substantial value.
• Hyperlend: A standard money market for supplying HYPE, rAST, stakeH, UBTC (Unit Bitcoin), UETH (Unit Ethereum), and Athena assets. It features a points board.
• Felix: Offers a vanilla lending model and a CDP (Collateralized Debt Position) model where users can deposit HYPE or UBTC to borrow `FEUSD` (Felix USD), its native stablecoin. "I quite like this one. Uh there is a points program ongoing for this one as well."
• Hyperfi: A leveraged money market with pooled and isolated markets, offering its own stablecoin, `USDXL`. Users can deposit LSTs like Loop Hype and Stake Hype.
• Actionable Insight: Interacting with these money markets, especially by borrowing native stablecoins like `FEUSD` or `USDXL`, can generate points and provide assets for further DeFi activities.

6. Maximizing Exposure through Decentralized Exchanges (DEXes)

• The host details strategies for interacting with various DEXes on Hyper EVM.
• Kitten Swap: A V3.3-style DEX.
  • Opportunity 1: Provide liquidity with `LHype` (Loop Hype) and `USDXL` (Hyperfi stablecoin) for yield, 3x points on L Hyperrewards, and 3x Hyperfi points. Risks include LST and CDP stablecoin vulnerabilities and impermanent loss.
  • Opportunity 2: Provide liquidity with `FEUSD` (Felix stablecoin) and `USDT0` for ~19.75% APR on stables plus 5x points.
• Hyperswap: A Uni V2/V3-style DEX with a points program and its own bridge.
• Liquid Launch: Described as the "Jupiter of the Hyper EVM," with an existing token and a leaderboard. It features a pump.fun-like product, distributing swap fees to stakers. The host discloses his exposure to this.
• Strategic Implication: LPing with ecosystem-native stablecoins or LSTs on DEXes like Kitten Swap can compound rewards by earning trading fees and multiple sets of points.

7. Exploring NFTs and .HL Domains

• While the host is personally cautious with NFTs, he acknowledges their potential role in airdrop criteria.
• Drip Trade: An NFT marketplace featuring collections like Wealthy Hippo Babies and market leader Pip and Friends (whose holders may receive ecosystem rewards). Mecca Cats are also mentioned based on a Blockmates report.
• .HL Domains: Similar to ENS names, these have been used as airdrop criteria in other ecosystems, though the host views them as speculative.
• Investor Note: While speculative, acquiring a low-cost NFT or domain from prominent ecosystem projects could be a minor, diversifying play.

8. Leveraging Yield Aggregators

• For users seeking a more passive approach, yield aggregators can provide diversified exposure.
• Hyperbee: Allows users to deposit assets and gain exposure to various products and yields, with a referral program and "hearts" for points.
• Mizu: Uses Hyperbee on the backend, allowing deposits from Ethereum, which are then bridged and deployed into the Hyperliquid ecosystem. The host remarks, "stuff like this wouldn't be spun up if there wasn't going to be some petro in my opinion."
• Volantis: An AMM (Automated Market Maker) for ST Hype, facilitating swaps between HYPE and the ST Hype LP.
• Actionable Insight: Yield aggregators can simplify exposure but may offer less direct control or potentially lower specific airdrop multipliers compared to direct interaction.

9. Alpha: Under-the-Radar Opportunities

• The host shares two early-stage opportunities he believes are not widely discussed:
• Liquid: A mobile-first frontend aiming to provide a CEX-like trading experience using Hyperliquid's backend. It currently has a large waitlist.
• Asn't (or a similarly named LST provider): A new LST provider from a "very, very, very good team," with its codebase reportedly finalized for launch around mid-May.
• Strategic Implication for Researchers: Identifying and engaging with such nascent projects early can offer significant upside, though it carries higher risk. These represent potential "alpha."

10. PvP (Player vs. Player) Interactions

• The host briefly mentions PvP platforms as another avenue for increasing Hyper Core interactions.

Host's Personal Capital Allocation Strategy

• 30% allocated to the comprehensive airdrop farming strategy detailed.
• 30% held as HYPE (mix of staked Hype and native Hype).
• 30% invested in ecosystem assets like `LIQD` (Liquid Launch token), which he views as having high potential.
• A small allocation to memecoins within the ecosystem.

Conclusion: Strategic Ecosystem Engagement is Key

This episode underscores that maximizing airdrop potential in ecosystems like Hyperliquid requires broad, thoughtful interaction rather than just chasing TVL. For crypto investors and researchers, the playbook offers a model for dissecting ecosystem incentives and identifying diverse participation strategies to enhance returns and gain deeper protocol understanding.