Monetrix mxHYPE

Monetrix mxHYPE is a HYPE-denominated vault that borrows USDC against deposits to run a delta-neutral overlay on Hyperliquid Core. Hyperliquid L1 carries an active rejected verdict, so the version-1 rejected-chain dossier decides. It is a separate product from the USDM record and gets its own file.

Review triggers: events that reopen the verdict
• The Hyperliquid L1 verdict changes, at which point the borrow, hedge construction, funding and liquidation path require their own review
• Monetrix deploys meaningful independently accounted backing for this product on an approved chain

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-12-15.

The research file

Mechanism applicability

Depositors supply HYPE, the protocol borrows USDC against it and runs a delta-neutral overlay on Hyperliquid Core, converting the proceeds back into HYPE before distributing to smxHYPE stakers. The holder is therefore long HYPE, short a USDC loan, and exposed to funding and hedge performance at once. Every leg of that trade, and the collateral securing it, lives on Hyperliquid L1 or HyperEVM.

Current observation and perimeter

The DefiLlama protocol API read on 2026-09-15 classified Monetrix mxHYPE under Basis Trading and reported approximately $1.63M on a Hyperliquid L1 perimeter, listed on 2026-08-27 with no recorded audit. DefiLlama split the former single monetrix record into mxHYPE and USDM products; this file covers the HYPE-denominated vault, and the separately maintained Monetrix USDM record covers the funding-driven stable token.

Control and exit applicability

Borrowing against a volatile deposit to fund a hedge adds a liquidation path the USDM product does not have: a fall in HYPE against the borrowed USDC can force deleveraging before any funding view plays out. Margin, auto-deleveraging and redemption all depend on Hyperliquid Core, and the chain verdict applies to all of it at once. No audit is recorded for this product.

Class rule

The rejected chain 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.

• Monetrix · primary · accessed 2026-09-15
  Supports: protocol identity, mxHYPE vault, smxHYPE staking, delta-neutral overlay, Hyperliquid Core
• DefiLlama — Monetrix mxHYPE record · secondary · accessed 2026-09-15
  Supports: current TVL, Hyperliquid L1 perimeter, Basis Trading category, listing date, product split, no recorded audit

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.