Felix Protocol Spotlight: The People’s Stablecoin on Hyperliquid
Felix (https://www.usefelix.xyz/) is a decentralized borrowing and yield protocol built natively on Hyperliquid L1, offering users structured access to leverage, stablecoin liquidity, and passive income. At its core is feUSD, a capital-efficient stablecoin backed by blue-chip crypto collateral and designed for composable DeFi strategies.
Origins & Founders
Felix was co-founded by Charlie, a risk-focused builder with a background in banking, venture capital, and DeFi tooling. After launching Anthias Labs in 2022 to monitor liquidation health across lending protocols, Charlie developed Felix to solve key inefficiencies in onchain borrowing and leverage.
Felix is backed by Hyperliquid’s HyperActive syndicate and built in collaboration with the Connect team, emphasizing user-first design, deterministic execution, and modular architecture.
Felix x Hyperliquid: Deep Integration
Felix is a core financial layer of the Hyperliquid ecosystem, leveraging its high-performance HyperEVM and native execution engine:
- Built on HyperCore, enabling deterministic, parallelized vault execution
- Integrated with Kinetiq, USDhl, and HypurrFi for yield routing, stablecoin settlement, and margin overlays
- Supports feUSD minting, strategy vaults, and redemption markets—all executed trustlessly onchain
Felix’s architecture avoids synthetic complexity, focusing instead on modular leverage, CDPs, and automated vaults.
feUSD: The People’s Stablecoin
- Type: Overcollateralized stablecoin pegged to $1
- Collateral: ETH, BTC, SOL, HYPE, and other majors
- Mint Cap: 5M (initial mainnet cap)
- Use Cases: Trading, yield farming, liquidity access
- Trading: Available on Hyperliquid, HyperSwap V3, and Project X
How to Borrow feUSD
Here’s a step-by-step guide:
- Connect Wallet → Visit Felix and link your EVM-compatible wallet
- Select Collateral → Choose from supported assets (e.g., ETH, BTC, SOL, HYPE)
- Set Borrow Amount → Maintain a safe collateralization ratio (Felix uses ~40% LTV)
- Customize Interest Rate → Felix allows user-defined rates for flexible debt management
- Approve & Borrow → Confirm the transaction and receive feUSD instantly
Borrowed feUSD can be used for:
- 📊 Leverage trades
- 🏦 Deposits into Stability Pools
- 💰 Liquidity access without selling core assets
How to Earn with Felix
✅ Stability Pools
- Deposit feUSD into Stability Pools
- Earn passive yield from borrower interest and liquidated collateral
- Withdraw anytime without penalties
- Pools act as a liquidation backstop, ensuring solvency and rewarding depositors
✅ Vault Strategies
- Participate in automated strategy vaults (long/short, tranching, rebalancing)
- Vaults execute trades directly on HyperCore with no offchain dependencies
- Choose risk-return profiles and earn based on vault performance
✅ Felix Points Program
- Earn points by interacting with Felix features: minting feUSD, depositing into pools, using vaults
- Points may qualify users for future airdrops or Hyperliquid incentives (speculative but active)
Security & Audits
Felix is a security-enhanced fork of Liquity V2, with:
- Mint caps to prevent over-leveraging
- Emergency pause functions
- Admin controls for safe parameter updates
- Audits by Dedaub and Coinspect
Ecosystem Impact
Felix has already surpassed $265M in TVL, becoming the second-largest protocol on Hyperliquid. It accounts for nearly 17% of HyperEVM’s DeFi liquidity, with over $100M in outstanding loans split between CDPs and vanilla lending.
