Hyperstable

How to Participate in the Hyperstable Airdrop

Minting USH and Earning PEG Tokens

1. Acquire HYPE tokens – First, you need to get HYPE tokens from Hyperliquid.
2. Transfer HYPE to HyperEVM – Move your HYPE tokens to the HyperEVM network here.
3. Swap HYPE for wHYPE – Go to HyperSwap and exchange your HYPE tokens for wrapped HYPE (wHYPE).
4. Access the Hyperstable platform – Go to Hyperstable and connect your wallet.
5. Deposit wHYPE as collateral – Deposit your wHYPE tokens as collateral in the “Deposit” section.
6. Mint USH stablecoins – Go to the “Mint” section, select the amount of USH you want to mint based on your collateral. Make sure to note the liquidation price to avoid potential liquidation.
7. Confirm the transaction – Review the details and confirm the minting transaction.
8. Claim your PEG bonuses – Visit the “Bonus” page to claim your earned PEG tokens on a weekly basis. You can choose to receive either 25% liquid PEG or 100% max-locked PEG.
9. Generate a referral code – On the “Bonus” page, generate your unique referral code and share it with friends to earn additional PEG tokens.
10. Participate in governance (optional) – Lock your PEG tokens (vePEG) to participate in voting on directed rewards to different liquidity pools, which may earn you additional incentives.

Understanding Hyperstable Key Terms

USH Stablecoin

USH is the native stablecoin of the Hyperstable protocol, designed to maintain a stable value. Users can mint USH by providing wHYPE as collateral, with the current debt cap set at 5 million USH.

wHYPE Collateral

wHYPE (wrapped HYPE) is the token used as collateral for minting USH on Hyperstable. Users must deposit wHYPE to mint USH stablecoins, with the value of the collateral needing to be at least 150% of the minted USH value.

PEG Tokens

PEG is the governance token of Hyperstable. Holders can lock their PEG to create vePEG, which enables participation in protocol governance and earning revenue from interest and liquidation fees.

vePEG Mechanism

vePEG represents locked PEG tokens. By locking PEG, users gain voting rights for governance decisions and earn a share of protocol revenue. The locking mechanism also protects holders from dilution through rebases.

Health Factor

The Health Factor is a metric that represents the safety of your position. A Health Factor of 1.5 corresponds to the minimum collateral ratio of 150%. If your Health Factor drops below 1, your position becomes eligible for liquidation.

Managing Risks on Hyperstable

When participating in the Hyperstable ecosystem, be aware of these potential risks:

• Liquidation risk – If the value of your collateral drops significantly relative to your borrowed USH, your position may be liquidated. Always monitor your Health Factor and add more collateral if needed.
• Market volatility – Fluctuations in wHYPE price can affect your collateral value and liquidation threshold. Consider maintaining a higher collateral ratio than the minimum required.
• Protocol parameters changes – Governance decisions may alter protocol parameters like interest rates or collateral requirements. Stay informed about governance proposals if you’re an active participant.
• Smart contract risk – As with any DeFi protocol, there’s an inherent risk associated with smart contract vulnerabilities. The protocol’s security has been designed with transparency in mind, but risks still exist.

FAQs

What happens if my position gets liquidated?

If your Health Factor drops below 1, your position becomes eligible for liquidation. During liquidation, a portion of your collateral is sold to repay your USH debt, typically with an additional liquidation penalty. To avoid liquidation, regularly monitor your position and maintain a healthy collateral ratio.

How do I repay my USH debt?

To repay your USH debt, go to the “Burn” section on the Hyperstable platform, enter the amount of USH you wish to repay, and confirm the transaction. After repaying your debt, you can withdraw your wHYPE collateral through the “Withdraw” section.

Can I partially withdraw my collateral?

Yes, you can partially withdraw your collateral as long as the remaining collateral maintains the minimum required Health Factor of 1.5. Navigate to the “Withdraw” section, input the amount you wish to withdraw, and ensure your position remains safe.

How often are PEG emissions distributed?

PEG emissions for minting bonuses and referrals are distributed weekly. The first epoch began on Thursday, May 15, 2025, at 00:00 UTC. Make sure to claim your bonuses every week starting May 22nd from the “Bonus” page.

What is the aPEG migration process?

Users who purchased aPEG during the Fjord sale need to migrate their tokens from Arbitrum to HyperEVM. This process requires gas tokens on both chains. For detailed migration instructions, check the official Hyperstable documentation or join their Discord community.

Conclusion

Hyperstable offers a unique opportunity for DeFi participants to engage with a stablecoin ecosystem while earning PEG tokens through active participation. By minting USH, providing liquidity, referring friends, and participating in governance, users can maximize their earnings while contributing to the growth of the protocol.

The launch on HyperEVM mainnet marks an important milestone for Hyperstable, with ongoing initiatives like liquidity farming and vePEG locking creating a comprehensive DeFi experience. As with any DeFi protocol, understanding the risks and mechanisms is crucial for successful participation.