# Bond Minting and Redemption: HyperStrategy Lifecycle
Source: https://docs.hyperstrategy.com/bonds/lifecycle
A step-by-step walkthrough of minting HyperStrategy bonds with USDT0 and redeeming them at maturity for HSTR or your full USDT0 principal.
Every HyperStrategy bond begins with a USDT0 deposit and ends at maturity with one of two outcomes: HSTR tokens at a favorable conversion rate, or your full principal back in USDT0. Between those two moments, the bond is a live ERC-20 token you can hold, transfer, or trade. This page walks you through the complete lifecycle, from acquiring USDT0 to redeeming at expiry.
## Step-by-Step Lifecycle
USDT0 is the stablecoin used across HyperEVM and for now its the only accepted deposit currency for HyperStrategy bonds. You can acquire USDT0 on HyperEVM DEXes or bridge it from another chain. The USDT0 contract address on HyperEVM is `0xB8CE59FC3717ada4C02eaDF9682A9e934F625ebb`.
Navigate to [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com) and review the currently active bond series. Each series displays its strike price, maturity date, issuance end date, and remaining USDT cap. Select the series whose parameters best match your strategy.
Enter the amount of USDT0 you want to deposit and confirm the transaction. You receive Bond ERC-20 tokens proportional to the amount of USDT0 you deposited. These tokens represent your convertible position in the protocol and appear in your wallet like any other ERC-20.
Once you hold Bond tokens, you have two options. You can hold them until the maturity date and redeem for one of the two outcomes below. Alternatively, because bonds are standard ERC-20 tokens, they are transferable, even before maturity.
Return to [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com) on or after the maturity date and submit your redemption transaction. The outcome depends on the HSTR market price at maturity.
## Redemption Outcomes
**Either outcome is a win.** Above strike, you convert into HSTR at a favorable rate and walk away in profit. Below strike, you get your full USDT0 principal back. There is no losing scenario, only upside or break-even.
**HSTR price ≥ strike price → you receive HSTR tokens**
When the HSTR market price at maturity is at or above the bond's strike price, your bonds convert into HSTR. You receive HSTR rather than your original USDT0, capturing the appreciation between the strike price and the current market price.
**Conversion formula:**
```text theme={null}
HSTR received = USDT deposited ÷ strike price
```
Because you acquire HSTR at the strike price, lower than the current market price, you immediately hold tokens worth more than your original deposit.
**HSTR price \< strike price → you receive your USDT0 principal back**
When the HSTR market price at maturity is below the bond's strike price, the conversion does not trigger. You redeem your bonds and receive the exact amount of USDT0 you originally deposited, no fees, no haircut, no loss. Your capital is fully returned.
## Full Worked Example
Here is a concrete example that illustrates both scenarios end-to-end.
**Setup:**
| Detail | Value |
| ---------------------- | ------------- |
| Date of bond issuance | 7/4/2025 |
| HSTR price at issuance | \$1.15 |
| Strike price | \$1.25 |
| Maturity date | 8/4/2025 |
| Your deposit | \$1,000 USDT0 |
One month passes and the bond reaches maturity on 8/4/2025. Here is what happens under each scenario:
**HSTR market price at maturity: \$1.30**
\$1.30 is above the \$1.25 strike price, so your bonds convert into HSTR.
```text theme={null}
HSTR received = $1,000 ÷ $1.25 = 800 HSTR
Value at $1.30 = 800 × $1.30 = $1,040
Profit = $1,040 − $1,000 = $40
```
You walk away with 800 HSTR worth \$1,040, a \$40 gain on your \$1,000 deposit.
**HSTR market price at maturity: \$1.20**
\$1.20 is below the \$1.25 strike price, so no conversion occurs.
```text theme={null}
USDT0 returned = $1,000 (full principal)
Loss = $0
```
You receive your original \$1,000 USDT0 back. No money is lost, no harm, no foul.
# HyperStrategy Convertible Bonds Explained
Source: https://docs.hyperstrategy.com/bonds/overview
Learn how HyperStrategy's ERC-20 convertible bonds give you principal protection and HSTR upside while fueling the protocol's HYPE treasury.
Convertible bonds are HyperStrategy's flagship financial instrument, the first and most important product in a broader suite of onchain issuance tools the protocol is building. They are ERC-20 tokens you mint by depositing USDT0 that entitle you to either HSTR appreciation or a full return of your principal at maturity. Every time a bond series is issued and filled, the raised capital flows directly into acquiring and farming HYPE, compounding the treasury and driving long term HSTR value. Understanding bonds is the foundation for everything else HyperStrategy does.
**Bonds are a win-win.** If HSTR reaches the strike price at maturity, you convert into HSTR at a favorable rate and walk away in profit. If it doesn't, you get your full USDT0 principal back. There is no downside scenario, only upside or break even.
## Key Properties
If HSTR trades below the strike price at maturity, you receive your full USDT0 deposit back, no loss of capital, no harm done.
If HSTR trades at or above the strike price at maturity, your bonds convert into HSTR at a favorable rate, capturing the token's appreciation directly.
Bonds are standard ERC-20 tokens. You can hold them to maturity, transfer them to another wallet, or sell them on a DEX before the maturity date.
Each bond series raised powers the next round of HYPE accumulation and yield farming, creating a compounding loop that grows the treasury continuously.
## Bonds Are the Protocol's Flywheel
When you mint bonds, your USDT0 doesn't sit idle. HyperStrategy immediately deploys that capital to purchase HYPE and farm yield across partner DeFi protocols on HyperEVM. The resulting treasury growth increases the backing behind HSTR, which in turn makes future bond series more attractive. Because bonds are ERC20, you have the option to trade them, integrate and use them in other protocols, or hold them, they function as a self-reinforcing mechanism that keeps capital flowing into the ecosystem.
Bonds are tradable ERC-20 tokens at every stage of their life. You are not locked in, if your strategy changes before maturity, you can sell your bonds on a secondary market DEX if a pool exists.
## How Bonds Fuel HYPE Accumulation
The USDT0 you deposit to mint bonds is used to systematically acquire HYPE for the protocol treasury. That HYPE is then deployed across the highest-yield, risk-adjusted farms available on HyperEVM through partnerships HyperStrategy has established with leading native DeFi protocols. Yield is used to **acquire more HYPE and execute HSTR buybacks**, and the cycle repeats with each new bond series, growing protocol-owned HYPE and tightening HSTR supply over time.
## Ready to Go Deeper?
Walk through every step from minting to redemption, including a full worked example with two outcome scenarios.
Understand the four configurable parameters that define each bond series: strike price, maturity date, issuance end, and USDT cap.
# HyperStrategy Bond Parameters: Strike, Maturity, and Caps
Source: https://docs.hyperstrategy.com/bonds/parameters
Every HyperStrategy bond series is defined by four parameters set at the time of issuance. These parameters determine the economics of the bond, how much you can deposit, when the bond expires, what price triggers HSTR conversion, and how long you can mint into the series. Understanding each parameter helps you evaluate a bond series before committing capital.
## Parameter Reference
The HSTR price in USDT at which your bond converts to HSTR at maturity. If the HSTR market price at maturity is at or above this value, you receive HSTR tokens calculated as `USDT deposited ÷ strike price`. If the market price is below this value, you receive your USDT0 principal back instead. The strike price is fixed at bond issuance and does not change.
The date on which the bond series expires and becomes redeemable. On or after this date, you can return to the bond interface and redeem your Bond ERC-20 tokens for either HSTR or USDT0, depending on the HSTR market price relative to the strike price. Bonds cannot be redeemed before this date through the protocol's redemption contract.
The deadline after which no new bonds can be minted for this series. Once the issuance end date passes, the bond series is closed to new deposits, existing bond holders can still hold and redeem their tokens at maturity, but the series accepts no further USDT0. This parameter gives the protocol and participants a clear window during which capital can enter a given series.
The maximum total amount of USDT0 that can be deposited into this bond series across all participants. Once the cap is reached, no further minting is possible for that series regardless of the issuance end date. This controls the total capital raised per series and allows the protocol to size each issuance intentionally.
## Why Multiple Bond Series Exist
The protocol can run multiple bond series simultaneously, each with its own distinct parameters. This design serves several purposes:
* **Strategic flexibility**, The team can target different HSTR price levels or time horizons with separate series, allowing capital to flow into the most relevant opportunity at any given moment.
* **Different risk/reward profiles**, A series with a higher strike price offers more upside if hit, but is less likely to convert. A series with a near-term maturity suits participants who prefer faster resolution. Different participants can choose the series that matches their outlook.
* **Continuous fundraising**, Rather than a single large raise, staggered series allow treasury growth to compound continuously, with new capital entering as prior series mature and are redeemed.
Multiple bond series can be active at the same time, each with different strike prices, maturity dates, and caps. You can participate in more than one series simultaneously if you want exposure to different risk/reward profiles.
# How HyperStrategy Accumulates HYPE: Instruments and Flywheel
Source: https://docs.hyperstrategy.com/how-it-works
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).
# HyperStrategy: Onchain HYPE DAT (Digital Asset Treasury).
Source: https://docs.hyperstrategy.com/introduction
HyperStrategy is the first and only decentralized HYPE DAT on HyperEVM, accumulating HYPE through a growing suite of financial instruments and yield strategies.
![Hyperstrategy New Banner 3 Copy]()
HyperStrategy is the **first and only decentralized HYPE DAT** (digital asset treasury), built on HyperEVM, Hyperliquid's EVM layer, with a single, relentless objective: accumulate as much HYPE as possible. Modeled after MicroStrategy's playbook of using capital markets to build a concentrated asset position, HyperStrategy brings that same discipline onchain. Instead of corporate bonds and Bitcoin, you get a permissionless suite of onchain financial instruments, starting with convertible bonds, and HYPE, all verifiable, all transparent, all composable.
## The Problem HyperStrategy Solves
Most DeFi protocols scatter capital across a dozen incentive programs, leaving token holders with no clear claim on real assets. HyperStrategy flips that model. Every dollar raised through its issuance products goes directly into growing a protocol-owned HYPE treasury.
## The Three Pillars
HyperStrategy raises capital through a growing suite of onchain instruments. Convertible bonds are the first and flagship product, USDT0-denominated ERC-20 bonds with a fixed strike price and maturity date, with additional bond formats and issuance products to follow.
Every issuance sends capital directly into the treasury, which is used to buy HYPE. The treasury grows with every cycle, and the size of that treasury, divided by HSTR's market cap, gives you the **mNAV** ratio: your at-a-glance measure of protocol health.
Sitting idle is not part of the strategy. The team deploys accumulated HYPE across the best risk-adjusted farms on HyperEVM, generating yield that is used to **acquire more HYPE and execute HSTR buybacks**, compounding the treasury and tightening supply over time.
## The HSTR Token
\$HSTR is HyperStrategy's native token. The total supply is **1,000,000 HSTR**.
## Get Started in 3 Steps
Bridge or acquire USDT0 (contract: `0xB8CE59FC3717ada4C02eaDF9682A9e934F625ebb`) on Hyperliquid's EVM layer. USDT0 is the capital currency accepted by all HyperStrategy bonds.
Visit [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com), choose an active bond issuance, and deposit your USDT0 to receive Bond ERC-20 tokens proportional to your deposit.
When your bond matures, redeem it onchain. If HSTR's price is at or above the strike price, you receive HSTR tokens. If below, you receive your full USDT0 principal back, no loss.
## Why HyperStrategy?
Bonds return your full USDT0 if the strike price is not reached. Your downside is always protected.
When HSTR trades above the strike price at maturity, bonds automatically convert to HSTR at a discount to market.
The protocol farms accumulated HYPE across HyperEVM DeFi, generating yield that funds **more HYPE accumulation and HSTR buybacks**, the flywheel effect.
HyperStrategy is live on Hyperliquid's EVM (HyperEVM). Make sure your wallet is connected to HyperEVM before interacting with the bond contracts.
## Where to Go Next
Dive into the full flywheel mechanism, bonds, treasury farming, looping strategies, and mNAV explained step by step.
Understand the HSTR supply structure, allocation breakdown, and what it means to own a share of the treasury.
# Join the HyperStrategy Community and Stay Informed
Source: https://docs.hyperstrategy.com/resources/community
Connect with the HyperStrategy community across X, Telegram, and more — get bond alerts, treasury updates, and direct access to the team.
The HyperStrategy community is at the heart of the protocol. Bondholders, HSTR token holders, and HYPE maximalists from across HyperEVM come together to share insights, track treasury growth, and coordinate around bond launches. Whether you want real-time chat, governance updates, or just a single link to everything, you'll find your place below.
## Community Channels
The primary channel for announcements. Follow for bond launch alerts, treasury milestones, governance news, and protocol updates as they happen.
Join the real-time community chat. Ask questions, discuss strategy, and get direct access to the team and fellow bondholders.
HyperStrategy's dedicated X Community space, a focused home for deeper discussion, community posts, and collective HYPE accumulation content.
Mint and redeem HyperStrategy convertible bonds. Provide USDT0 capital and gain upside exposure to HSTR.
Monitor live treasury stats including AUM, total HYPE held, mNAV, and HSTR price, all updating in real time onchain.
## Where to Buy HSTR
Buy HSTR directly through the official website, the simplest route for getting your first tokens.
HyperEVM DEX aggregator that routes across venues for the best available price. Recommended if you care about slippage.
HyperEVM DEX.
## Stay Ahead of Bond Launches
Follow [@Hyper\_Strategy](https://x.com/Hyper_Strategy) on X and turn on post notifications. Bond windows can open and close quickly, following on X is the fastest way to know the moment a new bond series goes live, so you don't miss your allocation.
# HyperStrategy Smart Contract Addresses on HyperEVM
Source: https://docs.hyperstrategy.com/resources/contracts
Official HyperStrategy smart contract addresses on HyperEVM — verify every address on Hyperscan before interacting with the protocol.
Every HyperStrategy contract is deployed fully onchain on HyperEVM, Hyperliquid's EVM-compatible execution layer. This page lists all official contract addresses and will be kept up to date as new contracts are published.
Always verify HSTR contracts addresses through this page or the official [HyperStrategy website](https://hyperstrategy.com) before interacting with any contract. Never use an address shared in Telegram, Discord, or social media without cross-referencing it here first.
## Contract Addresses
| Contract | Address |
| ------------- | -------------------------------------------- |
| HSTR Token | `0x3FA145caD2C8108A68cfc803A8e1aE246C36dF3e` |
| Bond Contract | `0x0bc7a3451a5d549241e50b1140aaf0fb57f05d17` |
| USDT0 (USDT) | `0xB8CE59FC3717ada4C02eaDF9682A9e934F625ebb` |
# HyperStrategy Roadmap: Building the Largest Onchain HYPE Treasury
Source: https://docs.hyperstrategy.com/resources/roadmap
Follow HyperStrategy's phased journey from protocol launch through active treasury farming to becoming the largest decentralized HYPE treasury on HyperEVM.
![Hyperstrategy Roadmap 1]()
HyperStrategy is the **first and only decentralized HYPE DAT** (digital asset treasury), and our mission is to grow it into the largest. What began as an onchain convertible bond protocol is evolving into a full treasury accumulation engine with an expanding suite of financial instruments, and you're joining at the ground floor. Each phase of the roadmap builds directly on the last, compounding both capital and protocol strength as HyperStrategy scales the only decentralized HYPE treasury on HyperEVM.
## Phases at a Glance
The foundation is live. HyperStrategy shipped the core infrastructure needed to begin accumulating HYPE and bootstrap a committed community of bondholders and token holders.
The foundation is live. HyperStrategy shipped the core infrastructure needed to begin accumulating HYPE and bootstrap a committed community of bondholders and token holders.
**What launched in Phase 1:**
* Convertible bond protocol deployed, bonds live at [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com)
* HSTR token launched as the native protocol token representing treasury ownership
* PRJX liquidity pool established, enabling open market HSTR trading
* Portfolio dashboard live at [portfolio.hyperstrategy.com](https://portfolio.hyperstrategy.com)
You can mint convertible bonds with USDT0 and gain upside exposure to HSTR directly at [bonds.hyperstrategy.com](https://bonds.hyperstrategy.com).
With the protocol infrastructure in place, HyperStrategy is now actively deploying its treasury across HyperEVM's DeFi ecosystem to compound HYPE holdings.
**What's happening in Phase 2:**
* Active treasury farming across HyperEVM DeFi protocols
* Systematic HYPE accumulation using bond issuance proceeds
* Introducing new financial instruments to allow treasury to accumulate more HYPE
* Looping strategy deployed, acquired HYPE is put to work generating additional yield, which is then used to acquire more HYPE and perform buybacks.
* DeFi partnerships expanding the range of yield opportunities available to the treasury
HyperStrategy will broaden its product suite beyond convertible bonds, introducing new bond formats and issuance products alongside a dedicated yield vault for HSTR holders and HYPE depositors.
**What's coming in Phase 3:**
* **Yield vault**, a user facing vault where participants can deposit assets and earn yield generated by the treasury's strategies, sharing in the protocol's compounding edge
* **New bond formats and issuance products**, additional instrument types beyond the current convertible bond, giving the treasury more ways to raise capital and giving participants more risk/reward profiles to choose from
* Deeper DeFi integrations across HyperEVM
The end goal is clear: HyperStrategy remains the largest decentralized HYPE treasury with sustainable, onchain mechanics powering its growth indefinitely.
**What Phase 4 is working toward:**
* Sustainable compounding mechanics embedded at the protocol level
* The largest decentralized HYPE treasury on any chain
* Continued protocol evolution driven by treasury performance
Further roadmap details will be announced as Phase 3 progresses. Follow [@Hyper\_Strategy](https://x.com/Hyper_Strategy) on X for updates.
## The Ultimate Vision
HyperStrategy mirrors the strategy of MicroStrategy but onchain, on steroids, and focused entirely on HYPE. Every issuance adds capital. Every yield farming cycle compounds the treasury. Every looping round acquires more HYPE. The protocol's design ensures that growth is not a one-time event but a self reinforcing system.
The end state is a treasury so large and so deeply integrated with HyperEVM's DeFi landscape that it becomes the defining benchmark for decentralized HYPE accumulation.
Provide USDT0 capital and receive convertible bonds with upside exposure to HSTR.
Track live treasury AUM, HYPE holdings, mNAV, and more in real time.
# HSTR Tokenomics
Source: https://docs.hyperstrategy.com/tokenomics
HSTR is HyperStrategy's native token
![Hyperstrategy Tokenomics]()
\$HSTR is the native token of HyperStrategy. The more the treasury grows, the more value stands behind each token.
## What HSTR Represents
As the treasury accumulates more HYPE through bond issuances, future financial instruments, and yield strategies, with yield also funding HSTR buybacks, the value backing each HSTR grows proportionally.
***
## Supply Structure
The total supply of HSTR is **at 1,000,000 tokens**.
***
## Where to Buy HSTR
You can acquire HSTR in a few ways depending on what you're optimizing for:
* [**hyperstrategy.com**](https://hyperstrategy.com) — buy HSTR directly through the official website.
* [**liqd.ag**](https://liqd.ag/) — a HyperEVM DEX aggregator that routes across venues for the best available price. Recommended if you care about minimizing slippage.
* **PRJX** — a HyperEVM DEX where HSTR mainly trades.
## Tracking Value: mNAV
The most important number to understand as an HSTR holder is **mNAV** (modified Net Asset Value):
```text theme={null}
mNAV = Treasury AUM ÷ HSTR Market Cap
```
When mNAV is above **1.0×**, the treasury holds more value than the market is pricing into HSTR, meaning you are acquiring treasury assets at a discount to their actual worth. See [How It Works](/how-it-works) for a full explanation of how proceeds from HyperStrategy's financial instruments and yield strategies compound mNAV over time.
Monitor the live treasury composition, HYPE balance, and real-time mNAV at [portfolio.hyperstrategy.com](https://portfolio.hyperstrategy.com). The dashboard updates continuously from onchain data.
# HyperStrategy Treasury: HYPE Accumulation Strategy
Source: https://docs.hyperstrategy.com/treasury/strategy
How HyperStrategy uses its onchain financial instruments, DeFi yield farming, and collateral looping to continuously accumulate HYPE onchain.
![Hyperstrategy Treasury]()
HyperStrategy's treasury is the engine behind every HSTR token. Rather than holding capital passively, the protocol deploys issuance proceeds into a self reinforcing accumulation loop, acquiring HYPE, farming yield across HyperEVM DeFi, and recycling returns to acquire even more HYPE. Every step is executed onchain and fully auditable, so HSTR holders always know exactly what is happening.
## The Accumulation Strategy
The treasury operates in three compounding phases that repeat continuously, growing the HYPE position with each cycle.
HyperStrategy issues onchain financial instruments, starting with USDT0-denominated convertible bonds, to participants who provide capital. The capital raised through each issuance is used directly to purchase HYPE on the open market, bootstrapping protocol-owned reserves. Issuance is handled entirely onchain, no intermediaries, no custody risk.
Acquired HYPE is immediately put to work. The treasury team deploys holdings across the best risk-adjusted yield opportunities in the HyperEVM DeFi ecosystem, spanning yield markets, liquidity pools, and partner protocols offering special TVL incentives. Idle HYPE is never the goal; every token should be earning.
HYPE holdings are used as collateral to borrow stablecoins, which are then used to purchase additional HYPE. This looping strategy amplifies the treasury's HYPE position beyond what bond proceeds alone could achieve. Yield generated in Step 2 is reinvested, and the cycle restarts, continuously compounding the treasury's exposure.
![Hyperstrategy Loop]()
## The Flywheel Effect
Bonds and HSTR are not separate products, they are two sides of the same compounding flywheel, each making the other more powerful over time.
The loop begins with bonds: bond capital funds HYPE accumulation, which grows Treasury AUM and NAV. As NAV rises, HSTR buybacks and token locks reduce circulating float, pushing the NAV-per-HSTR ratio higher. A higher HSTR price unlocks better terms for future bond issuances, attracting more capital, which acquires more HYPE, generates more yield, and funds more HSTR buybacks. The cycle is self reinforcing by design.
1. **Bonds fund HYPE accumulation** → Treasury AUM grows
2. **NAV grows** → buybacks & locks reduce HSTR float
3. **NAV/HSTR rises** → HSTR reprices higher
4. **Higher HSTR** → better future bond terms
5. **Better terms** → more capital raised
6. **More capital** → more HYPE acquired
7. **More HYPE** → more yield generated
8. **More yield** → more HSTR buybacks → back to step 2
![Image]()
1 HYPE = 1 HYPE
## Treasury Metrics
The figure updates in real time as positions compound and new bonds are issued.
The Modified NAV ratio, calculated as Treasury AUM ÷ HSTR Market Cap. View the live breakdown at [portfolio.hyperstrategy.com](https://portfolio.hyperstrategy.com).
**What is mNAV?** mNAV (Modified Net Asset Value) is Treasury AUM divided by the HSTR Market Cap. A ratio above 1.0× means the treasury holds more value in HYPE than the market is currently pricing into HSTR, historically a strong signal that HSTR is trading at a discount to its underlying assets. As the accumulation loop compounds, mNAV growth creates upward pressure on the HSTR price.
The HyperStrategy treasury is fully onchain and auditable at any time. All holdings, positions, and transactions are visible on any explorer or in Portfolio section on our [website](https://portfolio.hyperstrategy.com/).
# HyperStrategy: Treasury Yield Farming Across HyperEVM
Source: https://docs.hyperstrategy.com/treasury/yield-farming
How HyperStrategy actively deploys HYPE across HyperEVM DeFi protocols to generate yield that compounds treasury growth for HSTR holders.
![Hyperstrategy Farming]()
Every HYPE token that enters the HyperStrategy treasury is immediately put to work. Rather than sitting idle, accumulated HYPE is actively deployed across the HyperEVM DeFi ecosystem, generating yield that is used to **accumulate more HYPE and execute HSTR buybacks**, feeding directly back into the accumulation loop and growing NAV for all HSTR holders.
## DeFi Expertise Behind the Treasury
HyperStrategy is managed by a team of advanced DeFi veterans who have navigated multiple market cycles and farmed across virtually every major yield environment the space has produced. That depth of experience is applied directly to treasury allocation, the team continuously identifies, evaluates, and rotates into the best risk-adjusted opportunities available on HyperEVM.
## Categories of Yield Activity
The treasury deploys HYPE across three primary categories of yield-generating activity, each chosen to balance return potential with appropriate risk management.
Lending and interest-rate strategies that put HYPE and stablecoin positions to work in structured yield venues. These positions benefit from the deep liquidity and composability of HyperEVM's emerging money markets.
LP positions in HyperEVM-native DEXes allow the treasury to earn trading fees and incentive rewards while maintaining exposure to HYPE. Positions are actively managed to minimise impermanent loss relative to yield earned.
HyperStrategy has established direct relationships with leading HyperEVM-native DeFi protocols. These partnerships unlock special TVL deals and boosted incentives unavailable to general market participants, giving the treasury a structural yield advantage.
## Risk-Adjusted Farm Selection
Not every farm with a high APR belongs in the treasury. The team applies a multi-factor evaluation to every position:
Each partner protocol is evaluated on smart contract security, team credibility, audit history, and liquidity depth before any capital is committed.
Farms are ranked by risk-adjusted return, weighting gross yield against smart contract exposure, concentration risk, and liquidity conditions. Only the best-scoring opportunities receive allocation.
The team continuously monitors active positions and rotates allocations as market conditions, incentive schedules, and protocol risk profiles evolve. No allocation is set-and-forget.
## How Yield Flows Back to the Treasury
Yield generated across all farming positions flows back into the accumulation loop, not out to external parties. The cycle works as follows:
* Farming yield is collected and routed into two complementary uses: **buying more HYPE** for the treasury, and executing **HSTR buybacks** on the open market
* Additional HYPE increases treasury AUM, while HSTR buybacks reduce circulating supply, both push the mNAV ratio higher
* A higher mNAV creates upward pressure on the HSTR price
* A stronger HSTR price enables better future issuance terms, attracting more capital
* More capital purchases more HYPE, expanding the farming base further
HSTR holders benefit from treasury yield passively, there is nothing to claim or stake. As farming returns compound into a larger HYPE position and fund ongoing HSTR buybacks, Treasury AUM grows, circulating HSTR supply tightens, mNAV rises, and that appreciation is reflected directly in the value backing each HSTR token.
The team continuously reassesses farm allocations based on current yield opportunities, protocol risk, and ecosystem developments. Positions may shift frequently as the HyperEVM DeFi landscape matures and new protocols launch. Track the live treasury composition at [portfolio.hyperstrategy.com](https://portfolio.hyperstrategy.com).