Hyperion DeFi announced Monday that it is launching a permissioned onchain lending pool in partnership with HyperLend, a move the company says will allow it to refinance part of its existing debt at significantly lower cost while expanding its footprint within the Hyperliquid ecosystem.

The pool, built on the HyperEVM smart contract platform, will allow Hyperion to use its liquid staking token HiHYPE as collateral to borrow the USDH stablecoin through the HyperLend protocol. According to the company, the structure enables it to replace third-party obligations carrying roughly 8% annual interest with new onchain borrowing at approximately 4%.

Hyperion said the facility will initially be used for its own borrowing needs but may gradually open to additional approved lenders and borrowers over time.

Hyperion will pledge HiHYPE, its liquid staking token derived from staking the HYPE token to the “Kinetiq x Hyperion” validator, as collateral within the lending pool. The structure also allows the company to earn additional ecosystem incentives, including rewards from HyperLend’s HPL token, alongside the borrowing activity.

“This latest partnership with HyperLend builds on several months of work to develop scalable, monetizable infrastructure directly on the HyperEVM,” said Hyunsu Jung, Chief Executive Officer at Hyperion DeFi. “As we integrate further into the Hyperliquid ecosystem, we will continue supporting the growth of key protocols that cover liquid staking, lending, and yield enhancement. These integrations accelerate our DeFi flywheel, establishing additional revenue and ecosystem rewards opportunities while supporting the growth of the ecosystem.”

HyperLend, which serves as the leading lending layer within the Hyperliquid network, said the protocol has processed more than $17 billion in cumulative lending volume. The protocol’s design allows both permissionless public markets and gated environments tailored for institutional participants.

“Partnering with Hyperion DeFi to launch this institutional pool ensures that compliant participants have a secure, scalable environment to execute their onchain credit strategies while leveraging the proven reliability of our core protocol,” said HyperLend co-founder and CEO Benjamin Sever.

The lending pool is part of a broader strategy by Hyperion to build infrastructure within the Hyperliquid ecosystem. Hyperion has positioned itself as a publicly listed company providing exposure to the ecosystem through a treasury strategy centered on the HYPE token.

By combining staking, lending, and token incentives, the company aims to create what it describes as a “DeFi flywheel” that compounds returns while expanding usage across the network’s financial infrastructure.

Looking ahead, Hyperion said the onchain credit system could eventually support additional institutional capital flows, including opportunities tied to real-world assets and asset-backed finance as the HyperEVM ecosystem matures.