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HLP Vault — Hyperliquid's Market-Making Engine

The Hyperliquidity Provider (HLP) vault is a community-funded market-making vault on Hyperliquid L1. Depositors provide USDC, which the vault deploys as liquidity across perpetual markets — earning trading fees and PnL in return.

How HLP Works

HLP operates as a decentralized market maker. Community deposits fund automated strategies that place resting orders on both sides of the book, capturing the bid-ask spread and earning maker rebates.

Animated flow: Depositors fund the vault, which places limit orders on Hyperliquid's on-chain order book, earning fees and PnL that flow back to depositors.

Vault Strategy Visualizer

HLP places bids below and asks above the mid-price. Adjust the parameters to see how the vault's order placement responds to market conditions.

Green bands represent profitable spread capture. Red zones indicate adverse selection risk when volatility spikes beyond the quoted spread.

PnL Breakdown Calculator

Estimate your share of vault returns based on deposit size. Returns are proportional to your share of total vault TVL.

Maker Fee Revenue —
Taker Fee Revenue —
Position PnL —
Estimated Net APY —

Historical context: HLP has earned over $50M in cumulative PnL since its launch in late 2023, though past performance does not guarantee future returns. APY fluctuates with market volume and volatility.

Risk Scenarios

Market-making vaults face different outcomes depending on market conditions. The visualization below shows probability-weighted scenarios for HLP returns.

Normal — spread capture + fees (most likely) Volatile — inventory risk, reduced returns Extreme — adverse selection, potential drawdown

How to Deposit into HLP

1

Connect Wallet

Visit app.hyperliquid.xyz and connect your EVM wallet. You will need USDC on Arbitrum to bridge into Hyperliquid L1.

2

Navigate to Vaults

Open the Vaults tab in the top navigation. Select HLP from the vault list — it is the protocol's flagship vault.

3

Deposit USDC

Enter the amount of USDC to deposit. Your share of the vault is proportional to your deposit relative to total TVL. There is no minimum deposit.

4

Monitor Returns

Track your vault share value in real time. Returns accrue continuously as the vault earns fees and PnL from its market-making activity.

Lock-up & Withdrawals: HLP has a 4-day withdrawal cooldown period. After requesting a withdrawal, your funds become available after the cooldown elapses. This protects the vault from rapid outflows during volatile periods.

HLP vs Other Vault Models

HLP Hyperliquid

  • Model: Community-funded market maker
  • Deposit Asset: USDC
  • Strategy: Active limit-order MM across perp markets
  • TVL: ~$300M+
  • Historical APY: 10–30% (variable)
  • Risk: Inventory / adverse selection

GLP GMX

  • Model: Counter-party to all traders
  • Deposit Asset: Multi-asset basket (ETH, BTC, USDC, etc.)
  • Strategy: Passive LP — traders' losses are GLP gains
  • TVL: ~$400M+
  • Historical APY: 15–40% (variable)
  • Risk: Traders profiting = GLP loss, asset exposure

JLP Jupiter

  • Model: SOL-based perp liquidity pool
  • Deposit Asset: SOL, USDC, ETH, BTC
  • Strategy: Counter-party LP for Jupiter perps
  • TVL: ~$700M+
  • Historical APY: 10–50% (variable)
  • Risk: Trader PnL exposure, SOL price risk