Liminal, a Hyperliquid-based DeFi protocol, has grown steadily since its launch in April, with its total value locked (TVL) crossing $90 million ahead of its newest feature release.
The protocol surpassed $90 million on Aug. 10, a 71% increase from July 22, when it moved into its Epoch 1 phase, which opened Liminal to the public. The protocol was previously limited to users with invite codes.
Liminal TVL – DeFiLlama
Liminal automates delta-neutral strategies for select assets with Unit spot support on Hyperliquid. The protocol’s institutional mode allows for the generation and automation of sub-accounts on Hyperliquid, where users can deposit USDC from their Hyperliquid spot or perpetuals accounts, allowing Liminal to operate a basis trade for selected assets through the users’ sub-accounts.
Delta-neutral strategies take advantage of funding fees, where perpetual traders pay time-based fees in order to maintain long positions. In a delta-neutral or basis trade, the trader buys the spot asset and shorts an equal amount of the asset’s derivative.
By doing so, they collect funding fees from shorting the futures, but the overall market exposure of the trade remains neutral as they have offsetting exposure to the asset in the form of spot and derivatives.
Users can choose any combination of BTC, ETH, HYPE, SOL, USDE, FARTCOIN, and PUMP, and some of the assets also offer leveraged options for increased yield.
xTokens
On Aug. 16, Liminal released a new article on X, introducing what it calls “xTokens,” which will tokenize users’ delta-neutral positions.
The xTokens will track delta-neutral strategies with built-in leverage, meaning the xToken gains or loses value based on the position’s annual percentage yield (APY). The activation will allow xToken holders to use their delta-neutral positions on Liminal to generate additional yield through integrations with other protocols on the HyperEVM.
There is no set launch date for the first xToken pre-deposits, but it is expected in the “coming weeks.”
