HypurrFi provides permissionless access to liquidity on the Hyperliquid EVM, but quality risk management is critical for safe protocol operation and use.

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Smart Contract Risks

Smart contracts can contain software bugs or other vulnerabilities within the protocol code and the underlying reserve tokens. To mitigate these risks, HypurrFi is based on Aave V3’s open-source code, which has undergone significant third-party professional audit. Specifically it uses the Aave V3.0.2 codebase. Notable code differences between HypurrFi and Aave V3 include:
  • Stable debt is not supported.
  • The RewardsController is not available currently.
  • Reserve assets are configured specifically for the Hyperliquid EVM ecosystem.
Additionally, HypurrFi’s isolated lending markets are based on Fraxlend’s open-source code, which has also undergone extensive third-party audits.

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Smart Contract Audits


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HypurrFi Audits

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V3.0.2 Audits

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V3.0.1 Audits

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V3 Audits

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Fraxlend Audits

Any proposed changes to the protocol code are thoroughly reviewed and approved prior to implementation by the HypurrFi community. The protocol will run bug bounty programs to incentivize external developers to identify and report any issues.

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Oracle Risks

HypurrFi relies on third-party oracles for price feeds and external data, such as redemption ratios for liquid staking tokens. This reliance introduces potential risks such as incorrect valuations if an oracle fails or is compromised. HypurrFi is using Pyth oracle data at launch and will pursue additional robust decentralized oracle data as it becomes available on Hyperliquid EVM.

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Collateral Risks

HypurrFi governance engages ongoing risk service providers who track collateral performance and market stability. The value and liquidity of assets used as collateral can fluctuate, leading to the risk of under collateralization or bad debt. HypurrFi mitigates these risks by setting key risk parameters such as loan-to-value (LTV) ratios and liquidation thresholds. These parameters are continuously monitored by risk service providers and can be adjusted by HypurrFi governance to respond to market conditions.