Hyperlend Co-Founder on $HYPE’s Undervaluation vs BNB and the Future of HyperEVM

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In recent months, the crypto market has witnessed a powerful resurgence in interest around Hyperliquid and its native token $HYPE**, especially after it broke past $44 to reach new all-time highs. Amid growing momentum, the Hyperlend team — a core lending protocol built on HyperEVM** — has emerged as a key player shaping the ecosystem’s financial infrastructure.

To better understand the trajectory of Hyperliquid, its competitive edge over giants like Binance, and whether $HYPE is truly undervalued compared to $BNB, we sat down with @0xNessus, co-founder of Hyperlend.

The Genesis of Hyperlend: Building DeFi Infrastructure on HyperEVM

Hyperlend is often described as the AAVE of the Hyperliquid ecosystem — a fully permissioned lending protocol running on the latest codebase approved by Hyperliquid. It operates exclusively on HyperEVM, offering users the ability to borrow against assets like $HYPE and access advanced features such as flash loans for arbitrage and other on-chain strategies.

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But Hyperlend goes beyond basic lending. Positioned as a foundational financial layer for Hyperliquid, it introduces mechanisms that enhance capital efficiency and composability across decentralized applications.

One of its most innovative developments is the tokenization of HLP (Hyperliquid Pool) vault deposits. Users can deposit into HLP vaults through Hyperlend and receive a tokenized representation of their stake. This token can then be used as collateral to borrow stablecoins — effectively allowing users to compound their yields by reinvesting borrowed funds back into the HLP.

“We're enabling a flywheel effect,” explains Nessus. “More deposits mean more liquidity, which leads to higher returns, which in turn attract more capital.”

Additionally, Hyperlend is exploring the tokenization of perpetual positions — a groundbreaking concept that could revolutionize how traders manage long-term exposure. Imagine opening a BTC long or short position directly through Hyperlend, which then mints an NFT-like token representing that position. That token becomes a tradable, transferrable, and re-pledgeable asset — usable in lending markets, OTC deals, or structured products — all without closing the original trade.

This level of composability doesn’t exist on centralized exchanges like Binance, where perpetual contracts remain locked within the platform’s closed system.

Navigating the $JELLYJELLY Crisis: A Test of Trust

Two months ago, the launch of $JELLYJELLY sparked controversy and raised concerns about Hyperliquid’s risk management. Critics feared a repeat of past exchange collapses like FTX. But Nessus believes the team handled the situation with transparency and speed.

“The team acted responsibly,” he says. “They may not have anticipated low-liquidity meme coins being exploited, but they addressed it swiftly.”

More importantly, the incident strengthened his confidence in the HLP vaults, which have generated over $60 million in cumulative profits since launch — a figure unmatched by most other market-making pools.

With enhanced risk parameters now in place for HLP, including dual-tier settings for different asset classes, Nessus describes the system as “more bulletproof than ever.”

He emphasizes that Hyperliquid’s leadership consistently prioritizes user interests — a stark contrast to opaque centralized entities where decision-making happens behind closed doors.

Hyperliquid vs Binance: Architectural Divergence in Exchange Design

At first glance, both Hyperliquid + HyperEVM and Binance + BNB Chain appear similar: high-performance trading platforms paired with smart contract ecosystems. But beneath the surface lies a fundamental architectural divide.

Hyperliquid embraces full on-chain transparency. Every trade, funding payment, and liquidation is executed and recorded immutably on-chain. In contrast, Binance keeps its order book and risk engine off-chain, making independent verification impossible. Even BNB Chain does not inherit the deep liquidity of Binance’s central limit order book (CLOB).

The game-changer is HyperEVM, which natively integrates with Hyperliquid’s CLOB via precompiled contracts. Developers can tap into real-time order book data with a single function call — turning centralized-grade liquidity into a public, composable resource.

This enables use cases unthinkable on BNB Chain:

On Binance, your perpetual position exists only within the exchange. You can’t withdraw it, transfer it, or reuse it elsewhere. On Hyperliquid, every position becomes a programmable financial primitive.

Moreover, because trades settle directly on HyperEVM without relying on AMMs or off-chain relays, users enjoy superior capital efficiency — minimal slippage, no basis risk, and instant execution.

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Why Whales Like James Wynn Choose Hyperliquid

The rise of high-profile traders like James Wynn has brought massive attention to Hyperliquid. His multi-million dollar BTC long became a viral spectacle — visible in real time to anyone watching the chain.

“Wynn isn’t here for spreads or funding rates,” says Nessus. “He’s here for the show.” The fully transparent order book turns whale activity into entertainment — memes, commentary, millions of views. It’s a social phenomenon enabled only by true on-chain execution.

Some speculate Wynn’s criticism of Hyperliquid — claiming market makers “hunted” his position — might have been incentivized to drive traffic to competitors. His timing and messaging raised eyebrows.

Regardless, his presence underscores a key truth: transparency creates engagement, and engagement fuels ecosystem growth.

Is $HYPE Undervalued Compared to $BNB?

When comparing $HYPE** and **$BNB, Nessus is unequivocal: $HYPE is significantly undervalued.

Even as a standalone layer-1 token, he sees at least 5x upside potential for $HYPE relative to peers like $BNB. But when factoring in Hyperliquid’s exchange value — daily volumes rivaling top CEXs and a buyback program burning ~$3M worth of $HYPE per day — the gap widens dramatically.

“That’s roughly $1 billion in annualized buy pressure,” he notes. “If this pace continues, $HYPE’s market cap could reach astonishing levels by year-end.”

Unlike BNB, which derives value from a mix of exchange utility and tokenomics, $HYPE benefits from direct revenue-sharing with stakers and continuous deflationary pressure through buybacks — mechanisms that align closely with sustainable value accrual.

FAQs: Addressing Key Questions About HyperEVM and $HYPE

Q: What makes HyperEVM different from other EVM-compatible chains?
A: HyperEVM uniquely connects to a live central limit order book (CLOB), giving developers access to deep, real-time liquidity directly from an exchange-grade order book — not simulated AMM pools.

Q: Can I use my open perpetual position as collateral today?
A: Not yet, but Hyperlend is actively developing this feature. Once live, users will be able to tokenize and reuse their positions across DeFi.

Q: How does Hyperliquid handle high gas fees during meme coin surges?
A: The team responded quickly to congestion issues by reducing small block intervals from 2 seconds to 1 second, improving throughput and lowering gas costs during peak demand.

Q: Is $HYPE a good long-term investment?
A: Based on current buyback rates, ecosystem growth, and structural advantages over traditional exchange tokens, many insiders believe $HYPE has strong long-term fundamentals.

Q: Does Hyperlend have plans for cross-chain expansion?
A: For now, focus remains on deepening integration within Hyperliquid. Cross-chain interoperability may come later as the ecosystem matures.

Q: How does tokenized HLP work in practice?
A: Users deposit into HLP via Hyperlend and receive an ERC-20-like token. This token represents their share and can be used as collateral to borrow stablecoins or participate in other yield strategies.

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