The benefits of V2 vaults and why we've upgraded to V2 Last week, we went live with Morpho V2 vaults on Felix, upgrading from the Morpho V1 vaults. The V1 vaults remain live and active during the migration process, but what are the benefits of V2? The full benefits will be linked in the tweet below, but here is a overview of two of the key upgrades: 1. New yield sources Via the new adapter model for V2 vaults, Felix vaults can now lend to other sources of yield for finding the highest risk-adjusted yield for Felix lenders. In the future, this could include other protocols on HyperEVM or HyperCore Earn, letting users find the best yield across Hyperliquid in a passive, risk-managed way 2. More granular risk controls V2 vaults include more granular risk parameterization and separation including upgrades like allowing for absolute caps and relative caps (e.g. USDC lending to HYPE cap of $10m vs only lending X% of USDC vault supply against any particular asset). V2 vaults also include more role separation across the vault control stack (owner, curator, allocator, and sentinel) Felix vaults are all non-custodial and deployed with the @Morpho stack. If you’re a lender interested in earning yield on Felix or a current Felix lender with more questions on the upgrade from V1 to V2 vaults, feel free to reach out to us. In order to migrate to V2, just connect your wallet you have a V1 vault position with on the Felix app, and click “Migrate.”

Felix vaults V2 via @Morpho are now live. The new V2 vaults merge the prior V1 flagship and frontier vaults in order to unify liquidity and allow for a smoother borrower experience on Felix. Frontier vaults may return in the future once more long-tail collateral assets are scaling on Hyperliquid. Lend to the new vaults here:

EOA mode is live for Felix spot equities Based on early feedback, users wanted the ability to hold Felix spot equities in their own EOA wallets, outside of the embedded account system. Now, users can trade and hold spot equities onchain directly in EOA wallets (including hard wallets). Trade spot equities onchain today at

Spot equities earnings on Felix this week Tuesday, August 18 > Baidu (BIDU) — before market open > Home Depot (HD) — before market open Wednesday, August 19 > Lowe's (LOW) — before market open > Analog Devices (ADI) — before market open > Wolfspeed (WOLF) — after market close Thursday, August 20 > Walmart (WMT) — before market open > NetEase (NTES) — before market open > Deere & Company (DE) — before market open Trade all earnings at

Utilization across Felix USDC and USDT0 vaults remains elevated across markets over the past month. Strong borrow demand from Hyperliquid traders across kHYPE, HYPE, wstHYPE, UBTC, and UETH collateral markets continues to support higher yields for lenders across both USDC and USDT0 vaults on Felix Vanilla. Earn on USDC and USDT0 vaults here:

USDT0 vault utilization has remained at ~90% on average this week. Where is the yield coming from? Strong borrow demand across the kHYPE, HYPE, UBTC, and wstHYPE markets continues to support elevated rates for USDT0 lenders. Earn 12.09% APY on USDT0 here:

Felix Vanilla market utilization has held at an average of 79.4% over the past 30 days. Borrowing demand from Hyperliquid traders remains strong relative to supply, creating an opportunity for USDC lenders to earn higher natural yield over longer durations than other money markets on other chains. Earn 14.33% APY on USDC now:

Looking for a unified account for collateral currently split across HyperCore and HyperEVM? Users can now view, transfer to EVM, and borrow against asset balances across HyperEVM and HyperCore on Felix Vanilla. No need to manually transfer to EVM in order to check separate balances for position health on Felix. View and use all available HYPE, kHYPE, and UBTC collateral in one place.

The kHYPE loop quantified With @kinetiq_xyz kHYPE continuing to be the dominant collateral asset across HyperEVM, we wanted to give a breakdown on the current status of the kHYPE loop and how returns are playing out at different risk profiles today. Let’s dive in: Attached in graphic below is the breakdown at current Felix rates: Net APY = leverage × kHYPE yield − (leverage − 1) × HYPE borrow rate. kHYPE has averaged 1.94% APY over the past 14 days, and HYPE borrow against kHYPE on Felix is currently costing 0.84%, so result is +1.10% of carry per unit of leverage. For kHYPE/HYPE, Felix prices kHYPE at its redemption rate, not its market price. In September 2025, kHYPE briefly traded at 0.88 on secondary markets. This is a position Felix's oracle wouldn't have moved. Given that, where is the risk in the kHYPE loop? 1) Rate inversion: if borrow rates spike above staking yield, LTV drifts up. However, even at a sustained 10% HYPE borrow rate, drifting from 75% LTV to the 86% liquidation threshold takes ~1.7 years, and, even so, this 10% HYPE borrow rate rate would likely be arbed down in a matter of hours by HYPE lenders. 2) Exits: unwinding early means selling kHYPE at market price or waiting in the 8-9 day unstake queue. The oracle protects your health factor, not your exit price. Run the kHYPE loop yourself, or feel free to reach out to our team for more data on the loop:

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.

Felix continues to offer the largest vaults on HyperEVM with over $95m in deposits across vaults and ~$35m in available borrow capacity currently Current vaults live: >HYPE Flagship >USDC Flagship >USDC Frontier >USDT0 Flagship >USDT0 Frontier >USDe Flagship As a reminder, Felix vaults are deployed on @Morpho and support both 1) HYPE borrowers for looping kHYPE, wstHYPE, and kHYPE PTs as well as 2) stablecoin borrows for traders looking to borrow against HYPE, kHYPE, wstHYPE, and UBTC to trade more on Hyperliquid Will be interesting to watch where HyperEVM goes from here and in what ways HL Labs determines to further integrate the EVM or leave it as more segmented from Core. For now, EVM still serves as the primary mode of collateral servicing for HL traders looking to borrow against HYPE, kHYPE, and other HL-native assets to trade via Felix and HyperLend. TBD how much native Portfolio Margin will affect this in the future (not that much so far) or if there are other primitives that can be net-new on the EVM and gain scale. So far only lending and liquid staking have seen any viability, and both still face platform risk. Only path is to create durable value that is net-new and can't be swept away More on the way

24/7 tokenized stocks are now live on-chain via Felix The stock market is open 6.5 hours a day, 5 days a week—27% of the week (excluding holidays). Starting this week, Felix runs the other 73% too. Market movements that shift prices happen when markets are closed. (Earnings after hours, macro news on weekends, Asian news overnight, etc.) Now traders don't wait to trade. Access spot equity markets on-chain any time. The first six spot equity markets now accessible 24/7 on Felix are listed below with more on the way: >SPY >QQQ >CRCL >NVDA >TSLA >GOOGL Trade here: gFelix

This is the final scheduled notice of FLX HIP-3 sunset mechanics. If you still have active positions on FLX, please note the updated settlement mechanics in our docs below for commodities and equities markets given the US bank holiday on Friday, June 19. For commodities markets, the mark price and oracle price will be locked to the Friday market close (1 PM ET). For equities markets, the mark price and oracle price will be locked to the Thursday regular market close (4 PM ET).