HyENA closes after processing $4 billion in transactions

HyENA announced that it will close all markets from August 31 to September 2.

HyENA announced plans to close all markets from August 31 to September 2 after completing more than 12000 users and exceeding US$4 billion in cumulative transaction volume.

Summary

HyENA will remove one market every hour from August 31 to September 2. Open positions will be automatically settled and the margin will be returned to the user's spot balance. HLPe deposit users can redeem their positions and accumulated gains at a 1:1 ratio through Upshift. HyENA has generated nearly 2.5 million USDe rewards, but will not issue tokens.

HyENA will remove the market within three days.

HyENA stated in a shutdown announcement issued on August 28 that due to the adjustment of Hyperliquid stablecoin settings, the opportunities for derivatives using USDe as margin were reduced, and the platform decided to stop operating. The platform will be removed from the market on August 31 and the entire process will be completed on September 2. Instead of closing all contracts at once, HyENA will remove one market every hour during the planned time.

announcement states that users do not need to manually close positions before each market is removed. Once a market is removed, its marker price will approach the one-hour weighted average of the relevant oracle prices, and the remaining positions will then be automatically settled. Margin released through this process will be returned to each trader's spot balance. HyENA said user funds are safe during the closure period, but traders can still choose to exit positions before their relevant markets enter the settlement stage.

"User funds are safe," the team said. It added that the planned process is designed to allow customers to withdraw assets without having to manually settle. According to the team, HyENA's cumulative trading volume since its launch has exceeded US$4 billion, more than 12000 traders have used the platform, and USDe margin holders have received nearly 2.5 million USDe rewards.

HyENA was built by the Based team and uses Hyperliquid's HIP-3 system to provide perpetual contracts backed by Ethena's USDe. The design allows traders to keep margin in USDe and, while receiving rewards, can also use the same funds to support open derivatives positions.

Hyperliquid's integration with USDC has shrunk USDe's space

HyENA was launched at a time when multiple dollar-linked assets were competing for a bigger role in the Hyperliquid ecosystem. The team pointed out that assets such as USDT, USDe and USDH are all trying to gain a place in online transactions. The announcement stated that Hyperliquid's subsequent close relationship with the USDC changed the conditions for supporting the HyENA model. Although the team believes that Hyperliquid's strengthening of USDC integration is a reasonable development direction, it also means that the margin expansion space based on USDe has been compressed.

In May of this year, Coinbase became Hyperliquid's official USDC fund deployment, an agreement that also makes USDC an aligned bidding asset for the entire ecosystem. It was previously reported that Hyperliquid held about $5 billion in USDC in circulation at the time, about double the amount recorded a year ago. Under the agreement, USDC was given another clear role: Circle provides cross-chain infrastructure through its cross-chain transport protocol, and Coinbase is responsible for fund pool deployment. The agreement also gives Coinbase the right to purchase USDH brand assets through its native market.

According to JPMorgan Chase's July research report, as of June 11, USDC had become Hyperliquid's preferred stablecoin. The bank estimates that Hyperliquid holds approximately US$6 billion in USDC, accounting for approximately 8% of the stablecoin's circulating supply. JPMorgan also said Coinbase will return 90% of reserve income generated by USDC held on Hyperliquid to the agreement. The bank lowered its earnings forecasts for Coinbase and Circle after assessing the possible impact of the revenue-sharing clause on the two companies 'stablecoin revenue.

The agreement provides a direct U.S. link because Coinbase and Circle are both publicly traded U.S. companies. JPMorgan's assessment links Hyperliquid's stablecoin settings to the two companies 'earnings prospects, although the bank still expects USDC-related revenue to grow by 2027 based on its interest rate forecast.

HIP-3 hands over settlement responsibilities to the marketing department

HyENA's closure also demonstrates how HIP-3 market operators can manage Hyperliquid-based contracts without the core protocol running each product directly. Under the HIP-3 framework, independent teams can introduce perpetual markets while using Hyperliquid's order books, margin instruments, and clearing systems. Deployers choose contracts, oracle, leverage limits, and settlement terms that make each operator responsible for managing its market.

A report on HIP-3 states that the framework went live in October 2025 and requires teams to pledge HYPE before creating perpetual contracts. Products launched under this framework include synthetic markets related to commodities, listed stocks and private companies. Recent reports on sharp fluctuations in SK Hynix-related perpetual contracts explain that HIP-3 deployers provide oracle prices, external perpetual prices, and up to two additional markup price inputs. Hyperliquid then combines the submitted data with local transaction data to calculate the marked price of the contract.

The same HIP-3 market control feature allows deployers to suspend transactions, adjust open position limits, or settle contracts. HyENA is using this clearing authority to close its remaining markets in accordance with a published timetable. Regarding its shutdown plan, HyENA said each final marker price will converge with a one-hour weighted average of oracle prices before settlement. This approach is crucial for traders holding leveraged positions because the final marked price will determine the settlement value of open contracts.

HLPe withdrawals will continue through Upshift

In addition to the market closure, HyENA said users with HLPe deposits can withdraw principal and accumulated rewards through Upshift. Deposits will be redeemed at a ratio of 1:1. HyENA does not charge withdrawal fees and the redemption period is one day. The last regular reward allocation was made on August 27, the day before the closure announcement was announced. The final payment of the Alliance Rewards Plan is scheduled for September 9, when the market removal process has ended.

According to HyENA, Ethena ended its exchange reward program in June 2026. Since the event has ended, the platform will retain the final recorded status of HyENA points instead of taking snapshots. The announcement stated that points will not be converted or allocated and points will not have any monetary value. Regarding possible airdrop expectations, the team also made it clear that HyENA has no tokens and has no plans to issue tokens.