OVERVIEW

Celebrate, We’ve Tokenized Coupons 😶

Here’s What’s Happening 👇️

NEWS
Everything Good In The PURR Filing Belongs To HYPE 🤷

Hyperliquid Strategies ($PURR ( ▲ 12.86% ) ) reported its fiscal year this morning, and about a third of the release is about a company that isn't Hyperliquid Strategies. 😕

But before we go any further, let’s make sure we look at a who’s who, because it’s confusing as hell if you don’t know:

• $HYPE ( ▲ 3.89% ) is a blockchain with a perp exchange on it. No shares, no CEO, no earnings call.

• Hyperliquid Strategies Inc is stock ticker that owns 29.3 million HYPE tokens and runs a validator. It got its listing by hollowing out a clinical-stage biotech.

The two are not the same company. HSI owns a lot of HYPE. That's the relationship. And when you see HSI, that’s just the abbreviated version of Hyperliquid Strategies, not the stock ticker, which is PURR. So, not confusing at all (/insert sarcasm).

What PURR earned:

• $9.5 million in staking revenue and validator commissions

• $2.7 million in interest income

• $14.0 million in SG&A and R&D

The operating business lost roughly $1.8 million. The $305.5 million in net income is almost entirely unrealized marks on crypto they didn't sell - $709.9 million in gains, less a $183.5 million deferred tax bill on money that hasn't moved.

The Bull Case

• Roughly $945 million in fees accrued to the Hyperliquid ecosystem over twelve months

• 9.4% of global perpetual futures volume, centralized exchanges included

• Real-world asset perps cleared more than half of weekly volume in July

• Record $13 billion in open interest

• HYPE up 77% last quarter while total crypto market cap fell 13%

Fees buy back the token, but none of that money touches HSI's income statement.

The Bear Case

• HYPE ran 35% in a week partly because Trump said a sentence about the CFTC from a podium. No rulemaking, no comment period, no filing.

• Token unlock scheduled for September 6

• HSI sits on something like 13% of circulating supply with no realistic exit.

The protocol, Hyperliquid, is a real business. The stock is a leveraged bet that the protocol stays a real business, wrapped in a tax liability and a biotech's old CIK number. 🤦 

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DEFI
Speaking Of HYPE: Hyperliquid Whales Can Now Rent Out Their VIP Status 🐳 

Valantis and $PENDLE ( ▲ 3.3% )  just launched a market where Hyperliquid traders can rent somebody else’s fee discount. 🤔 Yes. DeFi has tokenized the coupon.

Hyperliquid gives lower trading fees to users who stake HYPE. Discounts range from 5% for staking 10 HYPE to 40% for 500,000 HYPE. Large traders want the discount but prefer their millions available as margin.

Enter the new arrangement:

• A HYPE holder stakes through stHYPE.

• Pendle separates the position into principal and an expiring Yield Token, or YT.

• The holder sells the YT while keeping a claim on the underlying stHYPE.

• A trader buys the YT and uses Valantis Prime to activate the corresponding fee tier until January 28, 2027.

• The YT eventually expires at zero, like a Bed Bath & Beyond coupon.

If the discount saves the trader more than the YT costs, good trade. If volume disappoints, the trader bought an expensive membership card. HYPE holders basically become discount landlords, traders rent whale status, and Pendle peddles a market price for “please charge me less.” 🤯

RWA
You Need $250,000 In Bitcoin To Avoid A $100,000 Down Payment 🤔

$BETR ( ▲ 8.8% ) and $COIN ( ▲ 4.92% ) have created a home loan for people with plenty of $BTC ( ▲ 1.95% ) , less cash, and no interest in selling. 🔴 

The product lets borrowers pledge Bitcoin to finance a down payment while the first mortgage remains a normal Fannie Mae-conforming loan.

• Better credits BTC at 40% of market value. To cover a $100,000 down payment, the borrower must pledge $250,000 in Bitcoin.

• The borrower gets 2 loans: a conventional first mortgage and a separate down-payment loan secured by BTC plus a second lien on the home.

• The BTC sits in Better’s Coinbase Prime account. No selling, moving, staking, or touching it until the debt is repaid.

• Bitcoin price declines do not trigger margin calls, collateral top-ups, or automatic liquidation.

• Miss payments long enough, however, and Better can sell the Bitcoin. Foreclosure on the house follows its own schedule.

• Coinbase One members can receive a closing-cost credit equal to 1% of the loan, capped at $10,000.

Useful? Yes. Revolutionary? Not quite. If you already own $250,000 in BTC, “access to homeownership” may not be your most urgent problem. 😶

NEWS
LSK Becomes Airline Miles While Celo Gets The Kids 🥹

After 10 years, $LSK ( ▼ 4.55% ) is shutting down its blockchain, winding down its DAO, and sending its applications and developers to $CELO ( ▼ 0.37% ) , who gets the kids. Lisk keeps the name, token, and rewards program. 🚸

The separation agreement:

• The Lisk Chain closes on October 31, 2026.

• Projects get a migration route to Celo. LSK holders still on the chain must bridge to Ethereum, while Base becomes the token’s primary network alongside Ethereum.

• The DAO proposal would burn 100 million LSK, reduce supply from 400 million to 300 million, and then close the governance machinery.

• LSK becomes a loyalty token for business rewards, referrals, and eventually platform fees. Basically airline miles for corporate treasury departments.

The new Lisk is financial operations software. Bank accounts, stablecoin balances, payments, approvals, and transaction records inside one dashboard. So… ya.

Lisk deserves a respectful nod on the way out. Launched in 2016, it made blockchain development more approachable for JavaScript developers and pushed modular applications before “modular” became a thing.

Now the chain closes, Celo gets the builders, and LSK starts collecting points toward a complimentary corporate checking account. 🫡

OLD NEWS
Crypto Stuff That Happened Today, But A Long Time Ago 📜

Here’s what was happening in the newsletter a year ago today:

• The headline story was Hyperliquid’s XPL chaos - one wallet allegedly dropped about $16M USDC, went 3x long, cleared the book, and sent XPL from roughly $0.58-$0.61 to about $1.80 in minutes.

• Open interest got vaporized - XPL OI collapsed from about $160M to $30M, while shorts were force-liquidated like they owed money to gravity.

• BTC and XRP looked overheated or profit-taking prone, ETH and LINK looked healthier, and ADA sat in a low-pressure zone where bored sellers can turn into squeeze fuel.

Two years ago - August 27, 2024

Here’s what was happening in the newsletter two years ago today:

• Nasdaq sought approval for Bitcoin Index Options tied to the CME CF Bitcoin Real-Time Index.

• BBitcoin spot ETFs had their 8th straight inflow day with about $202.51M coming in, while Ethereum ETFs saw about $13.23M in outflows.

• NEAR launched Nightshade 2.0, MakerDAO rebranded to Sky with USDS and SKY, and Aave proposed adding BlackRock’s BUIDL to the GHO Stability Module.

OLD NEWS
Other Stuff That Happened Today, But A Long Ass Time Ago ⌛️

August 27

• 1232 - On the conventionally converted date, Japan’s Kamakura shogunate issues the Goseibai Shikimoku, a 51-article legal code governing its warrior retainers.

• 1593 - Authorities arrest Pierre Barrière before he can carry out his plan to assassinate France’s King Henry IV.

• 1776 - British forces defeat Washington’s army at the Battle of Brooklyn, the American Revolution’s largest battle by troop participation.

• 1859 - Edwin Drake’s crew reaches oil at 69½ feet near Titusville, Pennsylvania. Oil is found standing in the pipe the next morning.

• 1883 - Krakatoa erupts with explosions heard roughly 3,000 miles away. The resulting tsunamis kill about 36,000 people.

• 1896 - Britain defeats Zanzibar in roughly 38 minutes, completing the shortest recorded war.

• 1916 - Romania declares war on Austria-Hungary and enters World War I.

• 1928 - Fifteen nations sign the Kellogg-Briand Pact renouncing war as an instrument of national policy.

• 1955 - The first edition of The Guinness Book of Records is published in Britain.

• 1979 - The IRA detonates a bomb aboard Lord Mountbatten’s fishing boat, killing him and 3 other people off Ireland.

• 1991 - Moldova’s Parliament adopts its declaration of independence from the Soviet Union.

• 2003 - Mars passes within roughly 34.6 million miles of Earth, its closest approach in nearly 60,000 years.

• 2008 - Democrats formally nominate Barack Obama for president, making him the first Black presidential nominee from a major U.S. party.

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Author Disclosure: The author of this newsletter holds positions in AVAX, ADA, PUDGY, WLD, NEAR, INJ, LTC, LINK, ZEC, XLM, and FET. 📋