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Liquidity Pools

HyperAMM liquidity pools hold assets across two systems — HyperEVM and HyperCore — with automated management of positions and hedges.

Pool Composition​

Every pool maintains a configurable target composition (default split shown):

  • 2/3 on HyperEVM — Assets held in the Valantis sovereign pool, used for swap execution
  • 1/3 on HyperCore — USDC collateral backing perpetual positions for delta hedging

The exact split (coreTargetWeight) is configurable per pool. The protocol's rebalancing system automatically adjusts when the composition drifts from the target.

Single-Sided Deposits​

Unlike traditional AMMs that require you to deposit both tokens in a pair, HyperAMM accepts single-sided deposits. Deposit just one token — the protocol handles the rest:

  1. You deposit token A
  2. The protocol converts 1/3 to the appropriate form for Core
  3. Hedging positions are opened automatically
  4. You receive LP tokens representing your share

LP Tokens​

When you deposit, you receive LP tokens for the pool. These are standard ERC-20 tokens that:

  • Represent your proportional share of the pool
  • Accrue value as the pool earns fees
  • Can be redeemed to withdraw your liquidity (subject to the withdrawal queue)

How APY is Generated​

LP returns come from:

  1. Trading fees — Dynamic fees charged on every swap through the pool (see Dynamic Fees)
  2. Funding fees — For NEUTRAL pools, funding payments from perpetual positions (when the funding rate is positive)

Costs that reduce returns:

  1. Hedging costs — Spread and slippage on Core perpetual orders
  2. Funding fees — For BULL pools, funding payments to the market (when the funding rate is positive)
  3. Rebalancing costs — Minimal costs from maintaining the 2/3-1/3 composition

Supply Caps​

Each pool has a configurable supply cap that limits the total amount of LP tokens that can be minted. This protects against:

  • Exceeding available hedging liquidity on Core
  • Concentration risk in any single pool

Next Steps​