HYPE rose 10.5% to $91.20 after Hyperliquid launched manual USDC and USDT borrowing against HYPE and Bitcoin collateral. The token reached a new all-time high of $92.56 on September 18.
Hyperliquid’s new manual borrowing feature went live on September 18. Users can now supply HYPE or Bitcoin as collateral and borrow USDC or USDT through HyperCore, the infrastructure also used for the platform’s portfolio margin system.
Manual borrowing is available to Manual/Standard and Unified Account users. Portfolio margin accounts already manage borrowing automatically, so they cannot use the separate manual borrowing option.
The loan-to-value ratio is 65% for HYPE and 50% for Bitcoin. That means $1,000 worth of HYPE can provide up to $650 in borrowing capacity, while the same value in Bitcoin provides up to $500.
Users supplying both HYPE and Bitcoin can combine the borrowing capacity from both assets. HYPE and Bitcoin used as collateral do not earn interest, while supplied USDC and USDT do earn interest but do not add to borrowing capacity.
Borrowed stablecoins build up interest continuously, with balances updated hourly. Interest rates depend on how much available liquidity is being used. Hyperliquid also keeps 10% of the interest paid by borrowers as a reserve for future liquidations.
Early data following the launch showed around $269 million in total borrowed assets, indicating that users were already making significant use of the new lending feature.
Hyperliquid uses a health factor to measure how close an account is to its liquidation limits. Users cannot take out another loan when their health factor reaches 100% or below, although that level does not automatically trigger liquidation.
Partial liquidation begins when the borrowed value moves above the collateral value after the applicable liquidation threshold is reached. The partial liquidation threshold is 82.5% for HYPE and 75% for Bitcoin.
A drop in the collateral price can therefore increase liquidation risk even if the user does not borrow more. Interest charges, withdrawals and additional borrowing can also push an account closer to the liquidation level.
For example, Hyperliquid’s documentation shows a position using 100 HYPE worth $40 each and a 2,000 USDC loan. At a 65% LTV, the HYPE collateral provides $2,600 in borrowing capacity, leaving another $600 available.
The position would reach the 82.5% partial liquidation threshold if the HYPE oracle price fell to around $24.24, excluding additional interest. The actual displayed liquidation price can change as prices, balances and interest change.
HYPE’s price also moved sharply higher following the rollout. Market data showed the token trading around $91.20, up 10.5% over 24 hours, after reaching $92.56. Trading volume was around $1.72 billion, while its market capitalization was close to $20.3 billion.
HYPE was also up about 57.1% over 30 days. The latest rally pushed it above its previous record of $89.57 set on September 6.
Bitcoin also moved higher during the same period, trading around $80,981 after gaining about 5.6%. BTC reached an intraday high near $80,998 when the market data was recorded.
Meanwhile, Hyperliquid’s expansion is taking place alongside efforts to bring regulated access to its markets for U.S. users.
On September 16, Payward, the parent company of Kraken, announced plans to offer regulated Hyperliquid perpetual markets to eligible U.S. customers through Bitnomial, subject to regulatory approval.
Under the proposed structure, Bitnomial Exchange would deploy and manage selected perpetual futures markets through Hyperliquid’s HIP-3 system. Bitnomial Clearinghouse would handle clearing and settlement, while NinjaTrader Clearing would manage approved customer accounts.
U.S. customers would need to complete onboarding with NinjaTrader Clearing, receive approval for the relevant Bitnomial market and have their associated addresses added to the permissioned HIP-3 allowlist.
Payward said Hyperliquid would be the first blockchain protocol used for the planned service. However, no launch date has been announced, and the available records do not yet establish final regulatory approval for the proposed arrangement.
