Non-EVM Asset as Collateral

The following guide describes how a user can use HYPE tokens as collateral to borrow from Arkis through "wrapping".

More information on "wrapping" can be found at Non-EVM Assets as Collateral

Trade video tutorial can be found at Non-EVM Asset as Collateral

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.

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.

The process is the following:

1. Send HYPE tokens to the Arkis wrapper contract on Hyper EVM.

2. Arkis issues arkisHYPE ERC-20 token and sends it to Asset Manager's address on Ethereum main net.

3. Arkis prices arkisHYPE 1:1 to HYPE using Hyperliquid's market price feed.

4. Arkis creates a pool where arkisHYPE is whitelisted as a collateral asset.

5. Asset Manager can take leverage using arkisHYPE as collateral.

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