USDC annualized to 17%, Hyperliquid earns $1.5 billion overnight? On October 21st, the annualized USDC lending rate increased from 3% to 17%. High interest rates can easily attract attention, but if you continue to search, you will find several sets of data with different directions The trading volume is recovering, native lending is expanding, while the funding scale of some ecological applications is shrinking The money in Hyperliquid seems to be changing its usage On chain data shows that the perpetual trading volume of Hyperliquid L1 in the past 7 days was approximately 56.515 billion US dollars, an increase of 25.52% compared to the previous period; The spot trading volume is about 1.47 billion US dollars, an increase of 6.39% According to UTC midnight snapshot, on October 16th, the USDC supply on Hyperliquid L1 was approximately $7.015 billion; On October 23rd, it was about 6.944 billion US dollars, a decrease of about 71.29 million US dollars in one week, a decrease of 1.02% On one hand, there is a sustainable transaction growth of about a quarter, while on the other hand, there is a slight decrease in USDC stock My understanding is that trading activity has recovered first, but the scale of funds has not kept up, which makes "how much money is put in the platform" and "how frequently this money is used" two separate issues that need to be observed The same margin can be repeatedly involved in trading; Existing assets can also be used to release purchasing power through mortgage loans. The increase in trading volume can not only come from waiting for external funds to enter, but also from changes in the way funds are used So, with the rise of trading, has the money earned from the agreement kept up? Looking at the Hyperliquid protocol's own account again Combining October 9-15 with the two full UTC weeks of October 16-22, the overall cost increased from $19.3554 million to $19.3949 million, an increase of approximately 0.2%; The agreement revenue decreased from $15.442 million to $15.1025 million, a decrease of approximately 2.2% This comprehensive statistics includes reserve income, which has shown improvement on the latest day: on October 22nd, the agreement revenue was about 2.7815 million US dollars, an increase of about 23.5% compared to the 21st But for the whole week, the income still slightly decreased So, for HYPE holders, the next thing to see is whether this round of trading recovery can be sustained and converted into income The markets where new transactions are concentrated, the rates applicable to traders, and how income is distributed will all affect how much money is left in the end Another more specific change occurs in native lending On September 18th, Hyperliquid officially announced that the underlying borrowing scale was about $269 million. By the morning of October 23rd, the total stablecoin borrowing in the official interface had reached about $429 million, an increase of about $160 million or 59.5% in just over a month Among them, USDC's outstanding loans are about 428 million US dollars, with a total supply of about 561 million US dollars and a fund utilization rate of about 76% This indicates that borrowing has become a business that someone is actually using and willing to pay interest on On the other side of the loan is the collateral asset. The current HYPE in native lending is approximately 14.41 million. According to the sampling price calculation, HYPE contributes approximately 86% of the value in the two types of collateral, HYPE and BTC For holders, this provides an option: to retain HYPE while obtaining USDC that can be mobilized. HYPE has gained an additional layer of funding usage as a result. Holding assets, collateralized financing, and participating in transactions can be connected in the same account system There is another number to keep an eye on next: 500 million US dollars This is the official document listing the USDC global borrowing limit. The current loan has been used by about 85.5%, with a remaining balance of about 72.38 million US dollars from the upper limit. As demand continues to grow, whether to adjust the quota will become a new observation point But looking back at the past week, other businesses in the ecosystem have not expanded together From October 16th to 23rd, the loan balance of HyperLend decreased from approximately $176 million to $164 million, a decrease of approximately 7.1%. The Papertrade and TVL we discussed in a row a few days ago decreased from $61.92 million on October 20th to $41.64 million on October 22nd, a decrease of approximately 32.8% in two days. This balance includes trader funds and agreement LP Native lending has expanded in just over a month, while some applications have been shrinking recently This makes me more concerned about the competition within the ecosystem: where would users choose to place the same USDC? Earning loan interest, participating in trading, or continuing to invest losses to mine coins? HYPE Hyperliquid USDC