Felix Protocol

At a glance Live

What

Lending

Runs on

HyperCore + HyperEVM

Official site

usefelix.xyz

Docs

usefelix.gitbook.io

X

@felixprotocol

TVL on Hyperliquid

$52.0M -5.8% 7d · #6 on Hyperliquid L1

Fees, last 30 days

$97.3K

Fees

feUSD CDP: up-front borrow fee plus a borrower-set interest rate, 2,000 feUSD minimum debt, 5% liquidation penalty, redemption fee of 0.5% plus a decaying base rate. Felix-curated Morpho vaults: 10% performance fee.

Official links

• App
• Trading app (spot equities)
• Docs
• Smart contract audits
• FLX HIP-3 sunset guide
• USDhl docs
• X
• Discord

Checked against Felix's own site on November 4, 2026. Bookmark these instead of using search ads.

TVL by product (DefiLlama)

Felix Vaults	Onchain Capital Allocator	$30.2M
Felix CDP	CDP	$21.4M
Felix USDhl	Yield	$356K

What Felix is

Felix is a lending venue on HyperEVM, Hyperliquid’s smart-contract chain. It offers two different ways to borrow, side by side.

The feUSD CDP is built on Liquity v2. A CDP (collateralized debt position) lets you lock collateral and mint a stablecoin against it: here you deposit HYPE, UBTC, kHYPE or wstHYPE and mint feUSD. You pick your own annual interest rate. A Stability Pool of feUSD deposits absorbs liquidations, and the peg holds because anyone can redeem feUSD for $1 of collateral when it trades below $1.

Vanilla Markets are isolated markets (one collateral, one loan asset) on Morpho’s HyperEVM deployment. Lenders supply them through Felix-curated vaults, the largest set of Morpho vaults on HyperEVM. Here you borrow a real asset such as USDC, USDT0 or HYPE at a floating rate.

Felix also sells Spot Equities, Ondo-backed tokenized US stocks at trade.usefelix.xyz/equities, with accounts on Ethereum mainnet and a CCTP route to HyperCore.

What has been sunset

• Felix Exchange (flx) was Felix’s HIP-3 perp dex. HIP-3 lets a deployer that stakes 500,000 HYPE run its own perp markets on Hyperliquid. Felix’s sunset guide settled the markets one per hour from 5:30 PM ET on Friday, June 19, with prices locked by RedStone. On Nov 4, 2026 Hyperliquid’s API showed all 16 flx markets delisted, with zero open interest. Details: Felix Exchange.
• USDhl, an M0-based stablecoin Felix built, is being fully sunset. The last rewards distribution was December 20 and the contracts are no longer maintained. Felix tells holders to switch to USDH.

What it costs

Product	Documented cost
feUSD CDP borrowing	Up-front borrow fee (no number published) plus the annual rate you choose
Minimum CDP debt	2,000 feUSD
Rate change within 7 days	Fee equal to 7 days of average interest
Redemption	0.5% plus a base rate that decays with a 6-hour half-life
CDP liquidation	5% penalty, paid to Stability Pool depositors
Vanilla borrowing	Variable rate on a utilization curve (docs example: 7% base, 25% at 90% use, 100% at 99%)
Vanilla liquidation	Discount of 12.67% on WHYPE markets, 7.41% on UBTC markets
Felix Morpho vaults	10% performance fee (Morpho API, Nov 4, 2026)

How to use it

1. Move HYPE, UBTC or stablecoins to HyperEVM and connect your wallet at usefelix.xyz.
2. To mint feUSD: pick a collateral, deposit it, choose an interest rate and mint at least 2,000 feUSD. A higher rate puts you further back in the redemption queue.
3. To earn on feUSD: deposit it in a collateral’s Stability Pool for borrower interest and liquidation gains.
4. To borrow an asset directly: use a Vanilla Market, for example USDT0 against WHYPE.
5. To lend passively: deposit USDC, USDT0, HYPE or USDe into a Felix vault.
6. Monitor your position. Felix suggests at least 150% collateral if you check daily, 180 to 200% if you don’t.

Risks

• Redemptions. When feUSD is below $1, the lowest-rate borrowers are redeemed first: you keep the dollar value but lose your collateral exposure, with no penalty.
• CDP liquidation below a health of 1. Published maximum loan-to-values are about 59% for HYPE and 50% for UBTC.
• Stability Pool losses. Your feUSD is burned in liquidations and replaced with volatile collateral.
• Depeg. feUSD relies on arbitrage and borrower rates, not off-chain reserves.
• Vanilla Markets. Floating rates can spike, bad debt is shared by a market’s lenders, and withdrawals can queue at high utilization.
• Oracle. RedStone is the primary price source.
• Admin control. Felix added admin-set mint caps and pausing to Liquity v2, and says all its contracts keep upgradability.

Audits: the Liquity v2 base was audited by ChainSecurity, Dedaub, Coinspect and Recon, with Certora formal verification; Felix’s own changes were audited by Dedaub and Coinspect. See the audits page.

Who it suits, and alternatives

The CDP suits HYPE holders who want a stablecoin loan at a rate they control and can watch redemption risk. Vanilla Markets suit people who want a plain floating-rate loan. For a pooled Aave-style market, see HyperLend and HyperLend vs Felix. Kinetiq and Valantis issue the kHYPE and wstHYPE accepted as collateral.