HYPE surges to new all‑time high after Hyperliquid launches manual USDC/USDT borrowing

HYPE rose 10.5% in 24 hours, reaching $91.20 and setting a fresh all‑time high of $92.56 on Sep 18. The price rally coincided with Hyperliquid’s rollout of manual borrowing for USDC and USDT, allowing users to pledge HYPE or Bitcoin as collateral.

Manual borrowing mechanics

Hyperliquid’s documentation states that manual borrowing went live on Sep 18. Users can supply HYPE or Bitcoin and borrow stablecoins (USDC, USDT) up to the following loan‑to‑value (LTV) limits:

• HYPE collateral: 65% LTV (e.g., $1,000 of HYPE provides up to $650 borrowing capacity).
• Bitcoin collateral: 50% LTV (e.g., $1,000 of Bitcoin provides up to $500 borrowing capacity).

When both assets are supplied, their borrowing capacities are summed. Supplied HYPE and Bitcoin earn no interest, while supplied USDC/USDT earn interest but do not increase borrowing power. Borrowed stablecoins accrue interest continuously, indexed hourly, with rates tied to available liquidity.

Liquidity and interest structure

At launch, total borrowed assets were reported at roughly $269 million. Hyperliquid retains 10% of borrower interest as a reserve for future liquidations. Suppliers receive a lower annual percentage yield than borrowers pay, reflecting the larger pool of supplied assets.

Liquidation safeguards

Hyperliquid uses a health‑factor model to compare LTV‑adjusted collateral against outstanding debt. Key thresholds:

• HYPE partial liquidation threshold: 82.5%.
• Bitcoin partial liquidation threshold: 75%.

If the health factor falls to 100% or lower, no further borrowing is allowed, though liquidation is not automatic. Falling collateral prices, additional borrowing, or interest accrual can push positions toward these thresholds.

Market impact

CoinGecko data showed HYPE trading at $91.20, up 10.5% over 24 hours, with a 24‑hour volume of about $1.72 billion and a market cap near $20.3 billion. The token was up 57.1% over the past 30 days, surpassing its prior record of $89.57 set on Sep 6.

Bitcoin also rose, trading near $80,981 after a 5.6% gain, moving between $76,205 and $80,998 during the same period.

Regulatory context

Payward (Kraken’s parent) announced plans to offer regulated Hyperliquid perpetuals to eligible U.S. clients through Bitnomial, pending approval. The proposal involves Bitnomial Exchange, Bitnomial Clearinghouse, and NinjaTrader Clearing for onboarding and settlement. No launch date has been disclosed, and CFTC approval is still pending.