EtherFi Expands to HyperLiquid Ecosystem Through Collaboration with HyperBeat

EtherFi, the largest Ethereum-based liquid restaking protocol with nearly $9 billion in total value locked (TVL), is branching out into the Hyperliquid ecosystem via a pre-deposit partnership with HyperBeat, the top yield aggregation protocol on the HyperEVM, Hyperliquid’s Layer 1 blockchain.

EtherFi and HyperBeat are launching preHYPE, a secure multi-signature vault for early deposits ahead of the release of beHYPE, a liquid staking token (LST). The vault leverages EtherFi’s existing infrastructure and user network alongside HyperBeat’s yield optimization strategies. Within six weeks, preHYPE is set to transition to a fully smart contract-based system, according to a release viewed by The Defiant.

Depositors can benefit from staking yields along with access to “Hearts,” HyperBeat’s rewards program.

The launch comes just days after Kinetiq, another liquid staking protocol, attracted over $400 million in deposits on its opening day, showcasing the substantial demand for yield opportunities from HYPE holders.

Amid a torrid rally in its native HYPE token, HyperLiquid is attracting increased interest from institutional investors and established DeFi teams, with its HyperEVM network recently reaching $2 billion in TVL.

Despite its growth, however, engagement with HyperLiquid has been tempered by concerns regarding ecosystem maturity – HyperEVM is just five months old – and a lack of incentives from the Hyper Foundation. In this context, EtherFi’s move can be viewed as a vote of confidence in the ecosystem’s potential.

“This collaboration with HyperBeat represents our commitment to fundamentals-oriented DeFi. By combining secure infrastructure with targeted DeFi incentives, we aim to support broader cross-ecosystem adoption while maintaining compliance and security,” said Mike Silagadze, founder and CEO of EtherFi.

“As HyperLiquid continues its growth, this collaboration enables both parties to offer optimized solutions that accelerate adoption and focus on sustainable user returns,” echoed zKilian, the co-founder of HyperBeat, which boasts $145 million in TVL and is yet to launch a native token.

EtherFi’s ETHFI token is up 29% in the past month, according to CoinGecko, but remains nearly 85% below its all-time high hit in March 2024 shortly after the token launched.