HyperSwap V3

HyperSwap V3 is a decentralised exchange on Hyperliquid L1 where returns come from supplying pooled liquidity to swaps. LP positions hold two assets and rebalance against every price move, so a provider can end with less than a plain hold. That impermanent loss is why we reject the AMM category outright: it cannot be explained to the client in two sentences and cannot be defended when it shows up as a loss we recommended. It held $8.6M across 58 pools at the August 14, 2026 survey. The file reopens if the protocol ships a product without that exposure.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Applicability to the surveyed record

HyperSwap documents V3 as a Uniswap-V3-style concentrated-liquidity AMM on HyperEVM. Each LP chooses a two-token pair and custom price range represented by an NFT; liquidity is active and fee earning only while price remains inside that range. This directly establishes the shared AMM-LP mechanism.

Current observation and perimeter

The DefiLlama API read on 2026-08-15 classified HyperSwap V3 as a DEX on its Hyperliquid L1 chain label and reported approximately $8.20M TVL. Primary documentation describes the execution environment as HyperEVM; size is contextual because the shared v1 AMM-LP exclusion applies at any scale.

Control and exit applicability

Pair selection, range, ticks, fee accrual and price path determine the LP’s changing inventory. Out-of-range positions stop earning fees, and editing a position closes it, withdraws the current tokens, may swap them to rebalance, and mints a new range; single-asset Zap similarly swaps and balances into a two-token V3 position rather than removing LP exposure.

Why the class rule decides

The shared v1 AMM-LP dossier controls because V3 fee income requires two-token concentrated inventory and realizes path-dependent conversion as price moves. Reopen only for an economically separate HyperSwap product without AMM inventory exposure, then review its cash flows, contracts and control, HyperEVM and asset dependencies, audits and incidents, executable liquidity, stressed exit, and named non-AMM alternatives.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• HyperSwap — concentrated-liquidity position · primary · accessed 2026-08-15
  Supports: Uniswap V3 model, custom price range, ticks, LP NFT, out-of-range fees
• HyperSwap — editing a V3 position · primary · accessed 2026-08-15
  Supports: position close, current-token withdrawal, rebalancing swap, new range, position authority
• HyperSwap — live HyperEVM V3 contracts · primary · accessed 2026-08-15
  Supports: HyperEVM deployment, V3 factory, position manager, router, migrator
• DefiLlama — HyperSwap V3 survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Hyperliquid L1 chain label, DEX category, survey perimeter

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.