In the cryptocurrency world, an airdrop is a promotional strategy where free tokens or coins are sent to multiple wallet addresses to raise awareness for a new blockchain project or service. These tokens may be given in exchange for tasks such as trying out a crypto project in the early stages.
This Airdrop Guide will provide a step-by-step demonstration of how to farm an airdrop for Hyperliquid.
What is Hyperliquid?
Hyperliquid is a decentralized exchange specializing in order-book-based perpetual futures. Designed as the ultimate platform for trading perps in DeFi, it operates on its own Hyperliquid chain, an L1 built on Tendermint. Not only does it promise complete transparency, affordability, and superior performance, but it also empowers users with full custody and control of their assets. In the decentralized world of Hyperliquid, every transaction occurs transparently on-chain, making every transaction transparent.
Why Hyerliquid Might Issue an Airdrop
Hyperliquid’s team member, iliensinc, recently hinted at the platform’s direction. With a clear focus on transparency through its fee structure and an upcoming Zellic audit, the platform’s commitment to security is evident. The most significant reveal: a native token is on the horizon, set to boost Hyperliquid’s L1 security and empower community governance.
With numerous trading options and minimized fees, Hyperliquid aims to establish itself as the premier trading platform. An airdrop serves to create awareness, incentivize early adopters, and build a strong user base from the onset. It’s worth noting that Hyperliquid has not undergone any VC fundraising as of yet.
Reflecting upon the massive airdrop by dYdX, where trading volumes significantly influenced the number of tokens distributed, it can speculated that Hyperliquid might employ a similar strategy. A high trading volume led to a higher number of tokens, emphasizing both the value and frequency of transactions.
To enhance your prospects in Hyperliquid’s impending airdrop, consider the following strategies:
Trade Actively:
Volume: Increase your trade volume on Hyperliquid. Historical airdrop patterns suggest higher volumes typically result in greater rewards.
Consistency: Engage in regular trading on Hyperliquid. A consistent trading pattern could demonstrate genuine platform engagement, potentially boosting your airdrop chances.
Provide Liquidity Consistently on the Hyperliquid Vaults:
Volume: Provide more liquidity. A more generous liquidity provision might translate into a heftier token reward.
Duration: It’s not solely about the volume. The length of time you maintain liquidity in the pools also matters. Extending your liquidity duration could result in better incentives.
Step-by-Step Guide to Farming Airdrop on Hyperliquid
Use code “REVELO” on the Referrals page to access the site for the first time.
Deposit Funds to Hyperliquid
Navigate to the Deposit section on the Hyperliquid platform and select Arbitrum network on your wallet.
Click on “Establish Connection“ to connect your wallet.
Authenticate and sign the request using your wallet to establish a connection with Hyperliquid.
Once connected, input the amount of USDC.e you wish to deposit for trading on Hyperliquid.
Review the details, then approve and confirm the transaction in your wallet.
Wait for the transaction to be processed. Once complete, the USDC.e will be available in your Hyperliquid account for trading.
Watch our quick video demo on how to deposit funds on the Hyperliquid platform below!
Open Leveraged Positions on Hyperliquid DEX
Browse through the available coins on the DEX to identify potential trading opportunities.
Choose a coin and decide whether you want to open a long (betting the price will go up) or short (betting the price will go down) leveraged position.
Input the desired amount and the leverage multiplier you want to use (e.g., 2x, 5x, 10x).
Confirm the details and execute the trade.
Keep in mind that higher trading volume on the DEX increases the probability of receiving airdrops. Continuously monitor and adjust your trades as necessary to increase your airdrop chances.
Watch our quick video demo on how to open leveraged positions on Hyperliquid DEX below!
Points to remember before using the Hyperliquid Vaults:
There’s a lock-up period for deposits in the vaults. Upon depositing in the Hyperliquidity Provider (HLP) vault, your funds will be locked for a duration of 4 days from the time of your most recent deposit in the vault.
Remember, HLP functions as both a market-making vault and a liquidation vault, earning a share of trading fees. By depositing, you’re essentially participating in strategies that were traditionally reserved for privileged entities on other platforms. Plus, HLP is fully community-owned, meaning there’s no additional profit share going to external vault owners.
Earn APR by Depositing USDC.e in Vaults
Navigate to the Vaults section on Hyperliquid.
To earn a consistent return, deposit your USDC.e into the Hyperliquidity Provider vault:
Check the current APR; as of this guide, it’s 38%.
Input the amount of USDC.e you wish to deposit.
Confirm and approve the transaction to start earning.
Alternatively, explore user vaults to find potential higher APRs based on different strategies and risk profiles:
Browse through the available user vaults and check their respective APRs.
Choose a vault, input the amount of USDC.e you wish to deposit, and then confirm the transaction.
Watch our quick video demo on how to earn through Hyperliquid vaults below!
Risks or Downsides of Participating in a Crypto Airdrop
Scams and Fraud: Participation in airdrops can be risky, especially on a new chain or network. Some protocols might turn out to be scams, targeting unsuspecting users. It’s essential to be cautious and conduct thorough research before engaging with an unfamiliar project.
Regulatory Risks: Legal and regulatory considerations can be complex, varying widely by jurisdiction. Participants should always check the rules of both the protocol and their residing country to ensure compliance. Engaging in an airdrop without understanding the relevant regulations might lead to unintended legal complications.
Uncertain Returns: While the prospect of an airdrop can be exciting, the rewards are never guaranteed. Some protocols might promise to launch a token and never follow through, or the token’s value might not justify the resources spent on obtaining the airdrop. Understanding that airdrops can be unpredictable and that returns might fluctuate is vital for anyone considering participation.
Disclaimer
Please note that this is not an endorsement of any of the protocols mentioned above. Pre-launched and newly launched protocols carry more inherent risk so interact with these (and any other) protocols at your own discretion.
