Elyra docs

Elyra is a lending and borrowing app built for the HYPE economy. You can lend your assets to earn interest, or borrow against assets you already hold without having to sell them.

Elyra runs on Elysium, the network built by Kinetiq where HYPE is the gas token. Elyra is live on Elysium Testnet. All tokens are test tokens with no real value, so you can try every feature without real money.

1. 1Connect your walletTap Connect wallet in the app and choose MetaMask, Rabby, Coinbase Wallet, or any WalletConnect wallet.
2. 2Switch to Elysium TestnetIf your wallet is on another network, Elyra adds and switches to Elysium Testnet in one click.
3. 3Get test tokensOpen the Faucet page to receive free test tokens. You also need a little testnet HYPE to pay for gas. The Faucet page links to a HYPE faucet.
4. 4Choose a marketOpen Markets, pick a market, and supply, add collateral, or borrow. Every action shows a summary before you confirm.

When you supply an asset to a market, it becomes available for others to borrow. Borrowers pay interest, and that interest flows to suppliers. Your balance grows automatically every block. There is nothing to claim.

• You earn the market's supply rate, shown as APY on every market page.
• The more of a market that is borrowed, the higher the rate suppliers earn.
• You can withdraw whenever there is enough unborrowed liquidity in the market.
• Supplying also earns Elyra points every hour.

To borrow, you first add collateral, an asset you lock in the market. You can then borrow a portion of its value. A few terms are worth knowing:

• Loan-to-value (LTV): how much you have borrowed compared to the value of your collateral.
• Max borrow: the most the app lets you borrow, as a share of your collateral value. It sits below the liquidation threshold.
• Liquidation threshold: the LTV at which your position can be liquidated.
• Health factor: compares the borrowing limit of your collateral with what you owe. Above 1.5 is comfortable. Between 1.0 and 1.5, a small price move can put you at risk. Below 1.0, part of your collateral can be sold to repay the loan.
• Liquidation: if your health factor drops to 1 or below, another user can repay part of your debt and receive some of your collateral plus a bonus in return.

What a sale costs you. When collateral is sold to repay a loan, the buyer receives a discount taken from your collateral: 7.4% in Core markets, 12.7% in Ecosystem markets and 15% in Frontier markets.

To stay safe, keep your health factor above 1.5 by repaying debt or adding collateral when prices move.

Every Elyra market pairs exactly one collateral asset with one borrow asset, for example "Collateral: WHYPE · Borrow: USDC". Each market has its own limits, rates, and price feed.

Because markets are separate, what happens in one cannot affect another. If a riskier asset has a bad day, only the market that uses it takes the loss. Your deposits in other markets do not change.

Core markets use established assets and allow higher borrowing. Ecosystem and Frontier markets involve the newer ELYRA token and use more conservative limits.

Utilization is the share of a market’s supplied assets that is currently borrowed. Rates follow utilization. When borrowing demand is high, rates rise to pay suppliers more and push borrowers to repay. When demand is low, rates fall to attract borrowers.

• Adaptive rate (Core and Ecosystem markets): targets 90% utilization. The rate at target starts at 4% for USDC borrows, 3% for WHYPE, and 8% for ELYRA. It is a quarter of that when the market is empty and four times that when fully used, and it moves if utilization stays away from the target.
• Kink rate (Frontier markets): starts at 2% and rises to about 10% at 70% utilization. Above 70% it climbs fast, which keeps liquidity in the market.
• Suppliers earn the borrow interest minus the reserve factor (see Fees and revenue), shared in proportion to their deposit.

Elyra has no deposit, withdrawal, or borrowing fees. The protocol earns only a share of the interest borrowers pay, called the reserve factor:

• Core markets: 10% of borrower interest goes to the protocol, and 90% goes to suppliers.
• Ecosystem and Frontier markets: 20% goes to the protocol, and 80% goes to suppliers.
• The reserve factor can never exceed 25%. Elyra enforces this limit.
• The Elyra share stays in the same market as a supply balance held by the Elyra reserve.

Liquidations: when a position is liquidated, the liquidator receives collateral worth the debt they repay plus a liquidation bonus, which is the penalty paid by the liquidated borrower. The bonus is about 7.4% in Core markets, 12.7% in Ecosystem markets, and 15% (the maximum) in Frontier markets. The entire bonus goes to the liquidator. Elyra takes no cut of liquidations.

• Earn yield on idle USDC, HYPE, and ELYRA.
• Borrow without selling and keep your exposure to the assets you hold.
• Isolated risk: each market is separate, so you pick the risk you take.
• Transparent: anyone can check every balance, rate, and transaction on chain.
• Native HYPE support: use HYPE straight from your wallet, with no manual wrapping.
• Public changes: Elyra can ship fixes and new features. Every change is announced in public and takes effect only after a waiting period.

You earn points for every hour a position stays open, based on its dollar value:

Example: borrowing $1,000 of HYPE for 24 hours earns 1,000 × 24 × 2 × 2 = 96,000 points. Track yours on the Points page.

• Liquidation: if your collateral loses value or your debt grows, your position can be partly liquidated and you lose the liquidation bonus.
• Price volatility: crypto prices can move quickly. Newer assets like ELYRA can move faster.
• Liquidity: if most of a market is borrowed, withdrawals may have to wait until borrowers repay or new suppliers arrive.
• Software risk: software can contain bugs, even after testing. Elyra has not completed an independent security review yet.
• Price feed risk: markets rely on price feeds. Safety limits pause new borrowing when a price is out of date.
• Testnet: Elyra is on testnet. Tokens have no real value, and balances or points may be reset.

Nothing in these docs is financial advice.

• HYPE: the gas token of Elysium. Use it directly in WHYPE markets. Elyra wraps it for you and always leaves a little in your wallet for gas.
• WHYPE: wrapped HYPE. Used as collateral or lent out to earn interest.
• USDC: a dollar stablecoin. Lend it to earn interest, or borrow it against WHYPE or ELYRA.
• ELYRA: the Elyra token, available in Ecosystem and Frontier markets with lower borrowing limits.

Questions, feedback, or a bug to report? Contact us.