> ## Documentation Index > Fetch the complete documentation index at: https://docs.hyperstrategy.com/llms.txt > Use this file to discover all available pages before exploring further. # How HyperStrategy Accumulates HYPE: Instruments and Flywheel > Learn how HyperStrategy's onchain financial instruments, treasury farming, and looping strategy create a self reinforcing HYPE accumulation flywheel. Hyperstrategy Blob Banner HyperStrategy runs a single, compounding loop: issue onchain financial instruments to raise capital, use that capital to buy HYPE, put the HYPE to work earning yield, and channel those returns back into buying even more HYPE. As the treasury grows, the value backing each HSTR token rises, which makes future issuance terms more attractive, which draws in more capital, and the cycle repeats. Every part of the system reinforces every other part. ## The Flywheel HyperStrategy issues onchain instruments to participants, starting with USDT0-denominated convertible bonds, with additional bond formats and issuance products on the roadmap. You provide capital and receive ERC-20 tokens in return. The raised capital flows directly into the treasury to purchase HYPE. The treasury deploys acquired HYPE across risk-adjusted yield farms on HyperEVM. Yield is continuously reinvested, compounding the amount of HYPE the protocol controls. HyperStrategy has established partnerships with native HyperEVM protocols that offer preferential TVL terms. Farming proceeds fund HSTR buybacks and additional HYPE acquisitions, reducing circulating float and growing treasury value simultaneously. As Treasury AUM rises relative to HSTR market cap, the **mNAV** ratio climbs. A higher NAV and stronger HSTR price make future issuances more compelling for new participants. More capital enters, more HYPE is acquired, and the flywheel accelerates, more HYPE, more yield, more buybacks, higher NAV, stronger HSTR. *** ## Convertible Bonds, The Flagship Instrument Convertible bonds are HyperStrategy's first and most important financial instrument, the engine that bootstraps protocol-owned HYPE today. Additional bond formats and issuance products are on the roadmap, but convertible bonds remain the foundation of the protocol. When you purchase a bond, you deposit **USDT0** and receive a bond token representing your position. \ \ At maturity, two things can happen: * **HSTR market price ≥ strike price** → Your bonds automatically convert into HSTR at the predetermined strike rate, giving you direct upside exposure to the treasury's growth. * **HSTR market price \< strike price** → You reclaim your full USDT0 principal. You take no loss on your initial capital. Convertible bonds are **principal-protected**. If the strike price is not reached by maturity, you receive your deposited USDT0 back. The strike price is denominated in **USDT**, making it easy to reason about in dollar terms. At maturity, the market price of HSTR is determined by a **TWAP** reported by the oracle. Each bond is an **ERC-20 token**, which means it is: * **Tradable**, you can buy or sell your bond position on the open market before maturity * **Composable**, bond tokens can be used as inputs in other DeFi protocols * **Transparent**, every issuance, conversion, and redemption is verifiable onchain You are never locked into holding a bond to term. If your outlook changes, the secondary market should be available. Purchase and manage bonds at [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com). *** ## Treasury Farming HYPE that enters the treasury does not sit idle. The team, experienced DeFi operators with multi-cycle backgrounds, actively deploys HYPE across the highest risk-adjusted yield opportunities on HyperEVM. HyperStrategy has secured partnerships with emerging HyperEVM native DeFi protocols that offer special TVL incentive deals, giving the treasury access to yields not available to the average participant. Yield generated from farming is continuously routed back into two uses: **acquiring more HYPE** for the treasury and funding **HSTR buybacks** on the open market. The HYPE side compounds the treasury; the buyback side tightens HSTR float, and both push mNAV higher independent of new bond issuances. *** ## Looping Strategy Beyond direct farming, HyperStrategy employs a looping strategy to amplify HYPE exposure: 1. Use **HYPE as collateral** on lending platforms 2. **Borrow stablecoins** against that collateral 3. **Buy more HYPE** with the borrowed stablecoins 4. Repeat to build a larger HYPE position than the base treasury capital alone could achieve Hyperstrategy Loop2 *** ## mNAV: Measuring Treasury Health **mNAV** (modified Net Asset Value) is the primary metric for evaluating HyperStrategy's performance: ```text theme={null} mNAV = Treasury AUM ÷ HSTR Market Cap ``` An mNAV above **1.0×** means the treasury holds more value than the total market capitalization of all outstanding HSTR, in other words, you are buying the treasury's assets at a discount. As the flywheel accelerates and the treasury grows faster than new HSTR is minted, mNAV rises. Track the live mNAV, treasury composition, and HYPE holdings at [portfolio.hyperstrategy.com](https://portfolio.hyperstrategy.com).