Felix agent security Over the past 8 months, a series of exploits, multiple likely using frontier AI models to find frontend and smart contract-level vulnerabilities in DeFi apps, have altered the DeFi risk landscape gravely. This has led to a clear re-underwriting of acceptable DeFi risk and yield profiles. To combat this threat, Felix Labs has been putting in place what we are terming for now our agent security system. Concretely, this means: • Every code change is reviewed by the latest available frontier models before deployment, alongside our existing audit and human review process. • Ongoing model-driven review of the deployed Felix codebase and our OpSec processes, re-run as newer models become available. • Reviews operating alongside our existing monitoring systems covering both system risk and collateral risk. No security system is a guarantee. However, what this does accomplish is 1) meaningfully raise the cost for a malicious actor and 2) adds a detection layer that improves with every model generation. Risk and security continue to be our priority #1# at Felix. Offering the best yields to Hyperliquid lenders and the best capital efficiency to borrowers are both key value propositions but secondary if protocol solvency is not first in check. Feel free to reach out if interested in hearing more on our systems.

In light of the USDH sunset, the Felix HIP-3 DEX and all live markets will begin sunsetting on June 19 and conclude on June 20. All traders are encouraged to close active positions before this time. Another reminder of this sunset will be sent in the Felix Discord and Telegram announcements channels on June 15. Markets will be settled sequentially, with each market settling one hour after the previous market. For full settlement mechanics, please review the FLX HIP-3 Sunset section of the Felix docs here: Telegram announcements: felixannouncements Discord link in bio

Spot STRC is now live on Felix. STRC investors on Felix have economic exposure to the current 11.50% annualized dividend for Strategy’s preferred stock. Access STRC now at

Spent the last week calling the largest institutions to get their read on the DeFi situation. Key takeaways: 1- Institutional interest isn't going away, for a simple reason: distributors aren't going away. Massive AUM, payments, and loans are coming onchain. Every fintech wants to move fully onchain. As an institution, you don't have a choice. 2- That said, they've completely lost trust in pool/hub models. Institutions and distributors want control: over the code, over the risk, over the compliance. With the flexibility to isolate what they want, while plugging into the global network of liquidity that's compatible with them. The promise of an open financial system is too big to fail: not because of ideology, but because it's going to create an immense amount of value for everybody involved.

Is Hyperliquid Reclaiming Value from Deployers? Following HIP-3, Hyperliquid largely outsourced new market creation to third-party deployers. This shifted Hyperliquid from a fully integrated exchange model, closer to Binance or Coinbase, toward a more modular exchange stack, closer to Nasdaq’s position within the broker / market / clearing infrastructure. The result has been a rapid migration of listing activity to deployers. Of the 104 new markets listed in 2026, 98 came from HIP-3 deployers, leaving Hyperliquid-operated listings at only 5.8% of new market supply. HIP-3 markets now represent 37.5% of total Hyperliquid volume. As Hyperliquid expands beyond crypto into equities, commodities, indices, and other RWA markets, that share should continue to rise. However, while HIP-3 deployers have been effective in expanding market coverage, they are also expensive. Under the HIP-3 model, deployers earn 50% of fees generated by their markets. Is that value justified, or is it being leaked? Hyperliquid still owns the exchange infrastructure, settlement layer, collateral base, and most of the flow, with only 3.75% of volume coming from third-party frontends. The deployer role can be reduced to two functions: 1) identifying relevant markets to list, and 2) managing oracle / mark-price infrastructure safely. For niche markets, both functions matter. But for obvious high-volume assets, such as gold, silver, crude oil, the S&P 500, Nasdaq, or top equities, market selection is less differentiated. Oracle setup remains critical, but it is not obvious why Hyperliquid could not internalize that function for the largest and most standardized markets, rather than share a material portion of future non-crypto perp economics with third-party deployers while retaining complete ownership only over its existing crypto products, which should become a smaller share of total volume over time. The obvious counterargument is that this is necessary for Hyperliquid to allow organic competition, since the exchange layer must remain neutral. However, Hyperliquid has already shown it is willing to adopt a dynamic role: provide exchange infrastructure while competing in vertical layers, as we saw when it added HIP-3 markets to its own frontend, removed staker discounts for builders, and launched a mobile app to prioritize its native frontend versus builder codes. HIP-4 looks like the same vertical-integration logic applied to deployment. Unlike HIP-3, where new market creation was outsourced from the start, HIP-4 begins with Hyperliquid-led canonical markets. The stated initial mainnet release is 1-day binary markets on BTC and HYPE, and Hyperliquid has said that canonical markets based on objective settlement sources will be deployed first, denominated in USDH, with permissionless deployment extended later pending user feedback. This gives Hyperliquid the opportunity to internalize the most obvious, high-volume, objective markets first, including BTC/HYPE binaries and potentially other standardized price-linked outcomes, before opening the long tail to third-party deployers. The strategic model becomes: keep canonical markets in-house, capture the blue-chip economics directly, and outsource niche or subjective markets where deployers add real value through curation, oracle design, liquidity coordination, and settlement credibility. Lots of Hyperliquid’s decisions have been leading toward the same thing: capturing more revenue, driving users onto the native platform, and acting both as a market layer while still allowing others to build. But while this may increase Hyperliquid’s future revenue capture, it could also meaningfully raise competition across the deployer and builder landscape.

Felix spot equities update There are now 61 new spot equity assets available on Felix private mainnet, many of which were requested by beta users. This addition brings the total available spot equities to 264. More information on alpha launch will be shared soon. Newly available equities are listed here for current beta users: >Space, Defense & Aerospace ASTS — AST SpaceMobile LUNR — Intuitive Machines NOC — Northrop Grumman RDW — Redwire RKLB — Rocket Lab >Clean Energy & Power ENPH — Enphase Energy GEV — GE Vernova SEDG — SolarEdge Technologies >Mining, Materials & Commodities ALB — Albemarle FCX — Freeport-McMoRan NEM — Newmont SCCO — Southern Copper UEC — Uranium Energy >International Equity ETFs ECH — iShares MSCI Chile ETF EWJ — iShares MSCI Japan ETF EWY — iShares MSCI South Korea ETF EWZ — iShares MSCI Brazil ETF FXI — iShares China Large-Cap ETF INDA — iShares MSCI India ETF KWEB — KraneShares CSI China Internet ETF >Crypto Spot ETFs ETHA — iShares Ethereum Trust ETF FSOL — Fidelity Solana Fund IBIT — iShares Bitcoin Trust ETF >Crypto-Linked Equities ENLV — Enlivex Therapeutics EXOD — Exodus Movement GLXY — Galaxy Digital >Commodity ETFs BNO — US Brent Oil Fund GLTR — abrdn Physical Precious Metals Basket OIH — VanEck Oil Services ETF PPLT — abrdn Physical Platinum Shares ETF UNG — US Natural Gas Fund URA — Global X Uranium ETF >Fixed Income ETFs HYS — PIMCO 0–5 Year High Yield Corporate Bond ETF IEF — iShares 7–10 Year Treasury Bond ETF SHY — iShares 1–3 Year Treasury Bond ETF >US Sector & Thematic Equity ETFs CIBR — First Trust NASDAQ Cybersecurity ETF ITA — iShares US Aerospace & Defense ETF PAVE — Global X US Infrastructure Development ETF SOXX — iShares Semiconductor ETF VNQ — Vanguard Real Estate ETF >Compute, Storage & AI Infrastructure APLD — Applied Digital COHR — Coherent CRWV — CoreWeave IONQ — IonQ NBIS — Nebius Group QUBT — Quantum Computing SNDK — SanDisk STX — Seagate WDC — Western Digital >Biotech & Pharma CAPR — Capricor Therapeutics REGN — Regeneron Pharmaceuticals VRTX — Vertex Pharmaceuticals >Industrials, Infrastructure & Transportation ETN — Eaton UNP — Union Pacific VFS — VinFast Auto WM — Waste Management

The rollout of portfolio margin (PM) is the biggest release that has gotten the least amount of attention from the community. It should be a key lever for attracting large accounts still on cexes, increased spot trading on HyperCore ($$$$), and increased stablecoin tvl.