Hyperliquid HLP to Rebalance Idle USDC into Lending After Upgrade

Hyperliquid founder confirms HLP will shift underutilized USDC to lending post-upgrade, addressing 79% idle cash ratio within $188.7M TVL.

Woofun AI reports that Hyperliquid founder Jeff stated on Discord that the next network upgrade will trigger a rebalancing of underutilized USDC from Hyperliquid Liquidity Provider (HLP) back into its lending sub-strategies. Analysis by Jiujiang Yue indicates that nearly 80% of HLP's funds remain in idle cash, with $148.7 million of the $188.7 million total TVL sitting in the main account without positions or orders. The remaining $40.06 million is distributed across seven sub-strategies.

Meanwhile, the native lending reserve holds approximately $762 million in assets, with $176 million in USDC supply and $112 million lent out, yielding a 63.7% utilization rate. Current annualized rates stand at 5% for USDC loans and 2.87% for USDC supply.