mHYPER Announcements

gmHYPER Over the past two weeks, mHYPER’s borrowing cost on Morpho has exceeded its underlying yield, resulting in temporary negative carry. During this period, the vault has processed over $70M in redemptions. It is worth noting that mHYPER calculates yield conservatively, and the value of the vault’s points exposure is not included in the NAV calculation. As always, LPs are free to unwind or redeem their positions at any time to manage exposure and avoid potential yield compression. The standard redemption cycle takes two days, while instant redemption remains available at a fixed cost. We are available to facilitate on-demand instant redemption liquidity for larger withdrawals. Please reach out to us if you intend to redeem with size.

gmHYPER Over the past week, several community members have raised concerns regarding mHYPER’s potential recursive exposure across partner protocols, particularly in relation to xUSD (Stream Finance) and yUSD (YieldFi). We appreciate the feedback and would like to provide full transparency on the situation and the steps already taken. As major liquidity participants across the ecosystem, Stream Finance and YieldFi are large LPs in mHYPER. In parallel, mHYPER allocates liquidity to Hyperithm Vaults on Euler and Morpho, which supply to lending markets involving yUSD and xUSD. The Hyperithm Lending Vault also lends to mHYPER/USDC markets. This structure created unintended recursive lending relationships, where risks could theoretically propagate across multiple protocols. To eliminate this recursive exposure and strengthen inter-protocol isolation, the following actions have been implemented: - Exposure to yUSD has been fully removed. - Exposure to xUSD has been fully removed. - Dedicated non-recursive lending vaults on Morpho and Euler are being deployed to park idle liquidity from mHYPER into isolated markets that are not linked to yUSD, xUSD, or mHYPER. the vaults will be set up by the end of the week, and full liquidity migration from mHYPER is expected to complete by next week. With the above measures, all recursive lending components within mHYPER’s portfolio have been fully removed. In addition, Hyperithm currently holds approximately $10M worth of unleveraged mHYPER positions as GP commitment, and intends to maintain this position for as long as mHYPER remains in operation. The holding addresses are as follows: 0x7C1d52A3459f2Eee78DA551b8C3D13FdF61fbc93 0xEa036F911b312BC0E98131016D243C745d14D816

gmHYPER mHYPER has secured a $25M allocation in Stable’s pre-deposit campaign last Friday. The campaign was highly competitive, and approximately 10% of mHYPER’s total AUM has been deployed into the deposit contract. As a transparent and liquid actively managed vault, mHYPER is designed to support daily redemptions and frequent reward distributions. These features introduce structural incompatibility with most pre-deposit campaigns, which typically require fixed lockup periods with profits realized only at campaign completion or upon a project’s TGE. To enable participation in such campaigns while maintaining mHYPER’s liquidity design, the vault leveraged Wildcat Markets as an infrastructure solution. Structure overview: -Hyperithm, the strategist behind mHYPER, borrows capital from the vault via a private Wildcat Market (https://app.wildcat.finance/borrower/market/0x2a1ffdd430ed6b7fcf4f8b9549154e6345bbebfb) at a fixed 20% APY throughout the campaign period. -Hyperithm deposits the borrowed capital into the pre-deposit campaign on behalf of mHYPER. -Upon the project’s TGE, Hyperithm will realize returns at its discretion. If the final ROI exceeds 20% APY, the excess yield will be distributed to mHYPER depositors via Merkl. If the realized ROI is below 20% APY, Hyperithm will absorb the shortfall, effectively underwriting the downside risk. This structure preserves mHYPER’s transparency and redemption capability while enabling access to competitive pre-deposit opportunities through an aligned, risk-managed design.