Ethena and HyperLiquiquit rise to the same destination in DeFi innovation

Written by: 0xResearcher

Step 1: Product design is the foundation, but the key is to find the pain points of demand

In the blockchain industry, product design is often the first step to success or failure. What Ethena and HyperLiquid have in common is that they did not try to innovate comprehensively, but achieved differentiated breakthroughs by accurately grasping the pain points of the existing market.

Ethena: From yield to liquidity, a new way to solve "old problems"

Ethena's stablecoin protocol is not the first project to attempt decentralized stablecoins, but it solves the liquidity dilemma faced by similar products in the past. By introducing centralized liquidity support from custodians, it not only makes the protocol more scalable, but also earns income through stETH and heavily pledged assets, providing users with a higher rate of return. In addition, Ethena designed a dual-token structure of USDe and sUSDe, similar to the relationship between ETH and stETH, so that users can not only obtain basic income, but also enjoy liquidity premium. This micro-innovation makes Ethena's stablecoin model more attractive.

HyperLiquid: Speed ​​and stability, redefining the derivatives trading experience

Although HyperLiquid's decentralized derivatives platform is not the first, it has won the trust of users through speed, stability and liquidity pool (HLP) design. Users deposit and withdraw funds with extremely high efficiency, and the funds are almost instantly received; and the design of the HLP liquidity pool effectively avoids the dependence of traditional DEX on market makers and reduces transaction costs. More importantly, HyperLiquid is known for its extremely high system stability. In the case of frequent downtime or rollbacks on other platforms, HyperLiquid always maintains reliable operation, providing users with a seamless trading experience. This strategy of "winning in a stable manner" has enabled it to quickly gain a foothold in the derivatives market.

Step 2: From "users" to "iron fans", community operation is the key

The vitality of a blockchain project cannot be separated from community support. Although Ethena and HyperLiquid have different strategies in community operation, they have both achieved the effect of "turning users into iron fans".

Ethena: Leveraging "external networks"

The Ethena team is well aware of the principle of "borrowing power to fight power" and quickly opened up the market through the network of industry KOLs and investment institutions. For example, Ethena cooperated with senior players such as Seraphim to reach target groups such as the TempleDAO team and large traders. This strategy not only helped the project quickly accumulate a user base, but also enhanced the community's trust in the project. Through the endorsement of KOLs, Ethena has successfully made its brand popular, and even attracted industry "bigwigs" such as Crypto Hayes to join, further expanding its influence.

HyperLiquid: Direct dialogue with the community

In contrast, HyperLiquid has adopted a more extensive user reach strategy. Team members establish connections with multiple levels of users from Hsaka Trades to ordinary traders through direct chat. More importantly, HyperLiquid makes users feel listened to and valued by continuously iterating product features (such as introducing the "vault" function required by the community). This "user-driven" community operation model not only enhances the user's sense of participation, but also makes the community one of HyperLiquid's most powerful moats.

Step 3: Moat and network effect, how to consolidate advantages

Any successful project will attract imitators. But truly outstanding projects are often able to maintain their competitive advantage by building moats. The efforts of HyperLiquid and Ethena in this regard are worth pondering.

Ethena: Liquidity and composability are core barriers

Ethena's moat lies in its liquidity and protocol integration capabilities. Through deep integration with mainstream DeFi protocols, Ethena makes its tokens the first choice for users. Even if competitors offer slightly higher yields, users are more inclined to use Ethena's assets because they are easier to use in the DeFi ecosystem. This combination of composability and high returns makes Ethena's products naturally attractive.

HyperLiquid: The positive cycle of liquidity network effects

HyperLiquid's core advantage comes from its liquidity pool (HLP). The design of the HLP liquidity pool not only attracts a large number of traders, but also establishes a user network effect that is difficult to replicate. As the number of users grows, the market depth and pricing advantages are further strengthened, which in turn attracts more users to join, achieving a positive cycle. In addition, HyperLiquid plans to launch an EVM-compatible chain to further enhance the capital efficiency and functional diversity of its ecosystem, and this layout will undoubtedly further consolidate its market position.

Step 4: Trade-off between financing and airdrop strategies

Ethena and HyperLiquid have very different choices in financing and token distribution strategies, but both have successfully served their core goals.

Ethena: The acceleration effect of external financing

Ethena chose the traditional financing path and attracted support from multiple parties, including exchanges and well-known investors. This not only provides Ethena with abundant financial support, but also helps it quickly establish trust within the industry and the ability to integrate resources. For a protocol that needs to rely on existing platforms to expand, this strategy is undoubtedly a wise move.

HyperLiquid: Self-reliance, maximizing community benefits

Based on its high-frequency trading (HFT) background, the HyperLiquid team launched the project with its own funds, avoiding the selling pressure that may be brought by institutional investors, while allocating more tokens to community users. Its $HYPE airdrop has been well received for its simple model of "no lock-up and no complex rules", which greatly enhanced users' sense of participation and confidence in the project. This "user-first" strategy allowed HyperLiquid to win the support of the community in its early days.

Conclusion: There is no fixed formula for success, but the path dependence is very heavy

The success of Ethena and HyperLiquid proves that there is no fixed template for the growth path of blockchain projects. They have chosen the most suitable strategy based on their respective product characteristics and market positioning, and won market recognition through continuous execution. This strategic choice of "tailoring products" may be the real secret to the success of blockchain projects.

For a wide range of project parties, the stories of Ethena and HyperLiquid undoubtedly provide important inspiration: understanding products, serving users, and building core moats can ultimately stand out in a highly competitive market.