xStocks LP Vault Staking

The XLP is a market-neutral liquidity vault on HyperEVM that provides exposure to tokenized stocks (xSTOCKs) while earning yield from trading fees across spot, perpetual, and AMM markets.

xStocks are tokenized versions of real-world stocks and ETFs on blockchain, issued by BackedFi. Each xStock token (e.g., “TSLAx” or “NVDAx”) is backed 1:1 by an actual share held in a regulated custodian, giving holders digital ownership that mirrors the underlying asset. They offer features typical of crypto assets, including fractional ownership, 24/7 trading, instant settlement, and integration in DeFi applications, while maintaining a strong connection to traditional equity markets.

In the pre-deposit phase, your funds are placed into Wrapped HLP (wHLP), which is Hyperliquid’s automated market-making vault. During this stage, your capital is already put to work by earning trading fees from Hyperliquid’s spot and perp markets. Once the xStocks LP Vault officially launches, those funds will be migrated into the full strategy that integrates tokenized stocks across spot, perps, and AMMs.

The vault generates yield primarily from:

• Trading fees on Hyperliquid spot, perps, and AMM markets.
• Market-making spreads through automated strategies.
• Incentives provided by Looping Collective and BackedFi.

• Regulatory risk: evolving rules for tokenized stocks.
• Liquidity risk: potential thin markets during the bootstrap phase.
• Oracle risk: reliance on accurate stock price feeds.
• Correlation risk: volatility across traditional equity markets affecting xSTOCKs.

• Regulatory compliance through BackedFi’s established legal framework.
• Liquidity bootstrapping with Looping Collective incentive programs.
• Oracle redundancy using multiple data sources with circuit breakers.
• Diversification across multiple tokenized stocks.

Looping Collective is a community of users, builders, and ecosystem partners who co-create and manage Liquid Looping Tokens (LLTs).

We’re launching one LLT per top crypto-asset. Each LLT pools liquidity from validators, LSTs, and LPs into a single, composable asset. That pooled liquidity then drives a flywheel that rewards contributors and unlocks airdrop multipliers across our products.

In short, it’s a community-driven standard that unifies looping liquidity and unlocks more value for everyone.