This Crypto Trade Printed 638% APY Last Month: Details

Hyperliquid is best known for its on-chain perps exchange, but did you also know there are vaults where users can deposit funds and follow specific trading strategies?

One of these vaults, currently enjoying a total value locked of more than $3 million, delivered 638% APY last month. Let’s examine.

What Are Hyperliquid Vaults?

Hyperliquid vaults are one of the more closely watched features on the decentralized derivatives exchange. They allow traders to participate in shared strategies.

Think about it this way – a vault works more like a pooled trading account. A vault leader runs a strategy, while other users can deposit funds into the vault and gain exposure to the results.

If the strategy makes money, depositors would share in the profits. If it loses money, they also share in the losses.

What makes vaults interesting is that, unlike a basic yield product that simply lends or rebalances assets, they are built directly into HyperCore. This means that vault strategies can tap into existing infrastructure available to traders on the exchange, including leverage, liquidations, perps, high-throughput execution, and everything Hyperliquid provides.

This can make them powerful instruments for those seeking more passive avenues, but they can also be risky. Returns can move very sharply in both directions, especially when vaults use leverage or take concentrated directional bets.

An interesting way to think about it is to equate it to on-chain copy trading with pooled capital. The strategy is fully visible, performance can be tracked, and users can choose whether the risk profile is fit for their own portfolio.

Long HYPE and BTC, Short “Garbage” Yields 638% APY Past Month

One particular vault built on Hyperliquid has drawn attention after returning an APY of 638% over the past month.

It’s named “Long HYPE & BTC, Short Garbage,” and it currently manages around $3.03 million in total value locked.

Its strategy is designed to be 70% HYPE and 30% BTC on the long side. It also maintains shorts in a basket of at least 10 high-FDV and high-emission coins, with the short side representing about 60% of notional exposure.

As you can see from the position table, the only underperforming trade is the BTC long, though it has been offset by the funding payout.

The vault’s overall PnL chart shows a steep rise over the prior 30 days, nearing the $1.2 million area.

Of course, this shouldn’t be interpreted as a low-risk yield. On the contrary, it reflects a rather aggressive leveraged long-short crypto trade, which depends heavily on HYPE’s price performance.

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