Hyperion DeFi uses HYPE tokens to stake on-chain options vaults, seeking new yield opportunities

Hyperliquid Digital Asset Management Company Hyperion DeFi Inc. (Nasdaq: HYPD) announced that it will use its held HYPE tokens as collateral for options to generate additional income. The company’s Chief Financial Officer David Knox emphasized that this strategy does not involve directional trading or speculation, but rather earns options premiums and fee income by providing collateral for opening and settling options, combined with HYPE token staking yields.

Hyperion CEO Hyunsu Jung stated that by deploying transparent on-chain options vaults on the Hyperliquid platform, the company aims to improve counterparty execution efficiency and pricing, while further optimizing the yield performance of HYPE tokens. Hyperion is collaborating with Rysk Protocol to launch on-chain options vaults. Rysk Protocol supports mature options strategies, including covered calls and cash-secured puts, all executed on-chain, providing convenience for institutional investors.

Hyperion plans to eventually open the on-chain options vaults to other institutional investors holding HYPE tokens, expanding capital utilization within the ecosystem. As of December 2025, Hyperion holds 1,862,195 HYPE tokens, worth over $63.5 million, providing the company with a stable source of digital asset income.

Following the announcement, HYPD stock price dropped over 13%, to approximately $3.50, with the overall cryptocurrency market sell-off causing nearly $750 billion in market cap to evaporate. Analysts believe that Hyperion’s on-chain options strategy could offer a new income avenue for digital assets, while injecting stability and liquidity into the value of HYPE tokens.

Investors will closely monitor how Hyperion executes its on-chain options strategy in volatile markets, and whether this innovative move can become a new model for generating returns in digital asset management, bringing broader industry reference value.