One of my favourite lowkey strategies on HyperLend is using LSTs to effectively lower your borrow costs by quite a substantive amount.
Let's say you're holding $1 Mill in HYPE. If you chose to deposit it as kHYPE into HyperLend you keep your staking rate, which averages around 2% APR, around $20k a year.
Then, you decide you need some liquidity, so you decide to take out a $500,000 USDC loan. USDC currently costs ~7.5% APR to borrow, annualising out to ~$35k a year in interest.
By transitioning into an LST and using the staking interest accrued to offset your borrow cost you now have a loan of $500,000 at the effective borrow cost of $17,500 a year, or 3.5% APR.
gLend.