The HYPE token surged 10.5% to hit $91.20 during trading on September 18, 2026. This price jump occurred right after decentralized exchange Hyperliquid released its latest manual borrowing feature to the public. The market reacted swiftly to this new utility, driving the exchange’s native token to a new all-time high (ATH) of $92.56.
Shortly after the feature went live, total borrowed assets rapidly surpassed $269 million. Through this service, market participants can now borrow USDC or USDT stablecoins by depositing HYPE tokens or Bitcoin into the platform as debt collateral.
Two Contrasting Interest Rules
The system powering this new service is HyperCore - the exact same core infrastructure behind the platform’s portfolio margin system. However, developer access controls remain in place: this manual feature is exclusively available to Manual/Standard and Unified Account holders. Portfolio margin users are excluded because their accounts already feature built-in automated debt and lending procedures.
Bitcoin and HYPE tokens deposited as collateral do not earn any yield for their owners. In contrast, users supplying USDC or USDT liquidity receive interest payments collected from borrowers, though these supplied balances do not increase the account’s borrowing capacity.
Borrowing costs accrue continuously without daily breaks via an hourly index scheme. These borrow rates are not fixed, fluctuating instead based on the market’s liquidity utilization rate. From the total interest paid by borrowers, Hyperliquid retains a 10% cut to build a dedicated reserve fund for future liquidation needs.
100% Threshold and Liquidation Execution
As a safeguard, the platform uses a ‘health factor’ metric to continuously monitor the ratio of collateral value to total debt. When this metric hits or falls below 100%, the system immediately restricts the account, preventing the user from taking on new debt.
An automated partial liquidation is triggered if the total outstanding debt exceeds the market value of the deposited Bitcoin or HYPE collateral. This liquidation procedure executes instantly to ensure no bad debt remains to burden liquidity providers on the platform.
Reported by crypto.news.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
