Hyperliquid Makes Money in a Bear Market Without Anyone Trading, Grayscale Says

Coinbase pays Hyperliquid 90% of the interest earned on about $6 billion of customer deposits, Grayscale research published Oct. 30 reported. The monthly payments do not depend on trading, and Hyperliquid, a blockchain-based exchange for leveraged price bets, made about $105 million in September, nearly the same as a year earlier despite a crypto downturn. The arrangement began in May, when Coinbase became treasury partner for USDC on Hyperliquid; USDC became the platform’s main trading currency, replacing USDH. Deposits are invested in U.S. Treasury bills, and Coinbase keeps the remaining 10% and the deposits.