# Non-EVM Asset as Collateral

The following guide describes how a user can use <mark style="color:green;">**HYPE tokens as collateral**</mark> to borrow from Arkis through "wrapping".

More information on "wrapping" can be found at [non-evm-assets-as-collateral](https://docs.arkis.xyz/home/for-borrowers/non-evm-assets-as-collateral "mention")

Trade video tutorial can be found at [non-evm-asset-as-collateral](https://docs.arkis.xyz/home/non-evm-asset-as-collateral "mention")

## Issuing arkisHYPE

An Asset Manager can request that their HYPE tokens be wrapped into ArkisHYPE, an ERC-20 token representing a 1:1 HYPE token in the Arkis ecosystem.&#x20;

### Why arkisHYPE?

As Arkis Protocol operates on the Ethereum main net, users can only use ERC tokens as collateral within Arkis. However, if an Asset Manager wants to collateralise non-Ethereum chain (and even non-EVM) assets, they can still do this through Arkis.&#x20;

The process is the following:&#x20;

1. Send HYPE tokens to the Arkis wrapper contract on Hyper EVM.&#x20;
2. Arkis issues arkisHYPE ERC-20 token and sends it to Asset Manager's address on Ethereum main net.&#x20;
3. Arkis prices arkisHYPE 1:1 to HYPE using Hyperliquid's market price feed.&#x20;
4. Arkis creates a pool where arkisHYPE is whitelisted as a collateral asset.&#x20;
5. Asset Manager can take leverage using arkisHYPE as collateral.&#x20;

When the trade is closed, the Asset Manager returns arkisHYPE to redeem their HYPE tokens.&#x20;