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USDXL is HypurrFi’s Hyperliquid-native hybrid CDP synthetic dollar. The debt mechanics incentivize market-buying to support a peg target of $1. CDPs work differently than stablecoins such as USDC or USDT0, they are fundamentally a dollar-denominated debt position. USDXL is backed by a partial reserve of other stablecoins, primarily USDT0. The reserve is growing from positions of protocol-owned liquidity deployed into relevant DeFi pools such as the HypurrFi Markets, and Balancer DEX AMM pools to enable swap liquidity between USDXL and other assets such as USDT0, USDC, and HYPE. The fees generated by these positions grow USDXL liquidity for better slippage and the overall USDXL reserve. Direct redemptions are not currently enabled for USDXL to other assets, but will be enabled in the future. The purpose of USDXL is to act as a debt rail where the borrower knows their counterparty, namely the HypurrFi protocol contracts. This is an important point. The HypurrFi team is not the counterparty, no lenders are the counterparty, only the protocol contracts themselves govern the debt position.

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Dynamic Borrow Rate Controller

USDXL has a Target Rate that responds to real market conditions instead of static jumps such that when USDXL is off peg, the borrow rate changes dynamically to encourage market activity to adjust peg.

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Reflexive Fee Distribution

Shifts from purely punitive mechanics to rewarding peg-supportive behavior
  • USDXL/hyUSDT0 boosted Balancer stableswap pool
  • USDXL/HYPE boosted Balancer pool
  • USDXL revenue from borrow pays LPs in boosted incentives

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HypurrFi Ecosystem Assistance Fund

HypurrFi USDXL LP positions (USDXL/hyUSDT0, USDXL/HYPE, and other Hyperliquid ecosystem token pairs) act as ecosystem buyback reserves, constantly reinforcing liquidity for Hyperliquid-aligned assets and USDXL. Fees generated from protocol-owned LP feed back into additional LP incentives, peg stability, and buy pressure on Hyperliquid native assets on EVM.

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Legacy Content

The following legacy documentation pages are available for reference:

USDXL Introduction

How USDXL works and implementation details

Borrow USDXL

Learn how to borrow USDXL

Supply USDXL

Learn how to supply USDXL

Repay and Liquidate USDXL

Repayment and liquidation processes

Flashmint

Flashmint functionality

Arbitrage

Arbitrage opportunities with USDXL

FAQ

Frequently asked questions about USDXL