Covalence

[Covalence @Covalencefi]

@huseyin1tekin Acceptable

[Covalence @Covalencefi]

Introducing Covalence

Liquidity for HYPE without selling

Borrow against your HYPE at zero interest

[Covalence @Covalencefi]

@wasimalik101 Only live on testnet, mainnet coming soon

[tree of dopamine @infinitybanyan]

I built @Covalencefi because the current state of the space focuses on short term, high risk, extraction type use cases. There’s very little onchain to help one keep wealth.

What do wealthy people do? They hoard assets. Never sell. “Buy, borrow, die”. Onchain you can borrow, but during times of volatility or significant price appreciation, borrow rates can go over 100%. Then you’re stuck in a high interest loan that can sometimes outpace gains.
Perps have funding costs, money markets have funding costs, brokerages take their cut; everything bleeds you while you take the risk. What if you had access to liquidity for near zero cost?
Covalence allows users to borrow against their $Hype at 0% interest; just a small .5% or less mint fee. It’s self custody, so no reliance on third parties for liquidity. Your assets become the source of liquid capital without needing to sell.

You keep full directional exposure (you can even compound directional exposure!) and have something to deploy into other strategies, without being exposed to excessive borrowing costs that continuously compound against you.

I’ll explain more on why this is novel, personal strategies, and where this project is headed in subsequent posts. I’m genuinely excited for this and I hope everyone that tries it finds it useful. We’ll launch on mainnet after audits complete.

Please follow the team acct and take a look at the litepaper; would love questions, thoughts, etc. And if you want to help in any way, feel free to reach out!

[Covalence @Covalencefi]

Read the litepaper 👇

https://t.co/99YQuEyI1d

[Covalence @Covalencefi]

How it works:

• Deposit HYPE or kHYPE as collateral in a self custody vault
• Zero ongoing interest, one-time mint fee
• Mint CUSD, a HYPE-backed stablecoin
• Use CUSD for anything: trade, pay, or loop
• Redemptions keep CUSD pegged to $1

Built on HyperEVM.

[tree of dopamine @infinitybanyan]

been building something for the last ~6 months.
more details soon
@Covalencefi