Felix feUSD

The Felix protocol, which offers lending and leverage products in the Hyperliquid ecosystem, runs a collateralized debt position (CDP) market where users can mint a dollar stablecoin called feUSD by posting crypto assets as collateral. feUSD is issued on HyperEVM, Hyperliquid's smart contract layer, and can also be used on the Hyperliquid main chain.

A user deposits a supported asset, mints feUSD against it and typically swaps it into another asset to gain leverage or uses it as liquidity. If a position's collateral ratio falls below the threshold set by the protocol, the position is liquidated; the aim is for circulating feUSD to be backed by crypto collateral of greater value. Felix also offers products such as lending vaults built on Morpho infrastructure and futures markets on Hyperliquid.

feUSD's peg depends on the volatility of the collateral assets, how the liquidation process works under stress, liquidity depth on HyperEVM, and oracle and smart contract risks; the overall state of the Hyperliquid ecosystem also directly affects the token's use. The page on Lzzo.com shows DefiLlama's US dollar reference price and historical chart for feUSD.