As HYPE went on a run over the past month we witnessed all sorts of user behaviour on HyperLend. Whales rebalanced, users took profits and some people of course just stacked more HYPE. One day as I was watching all of these movements happen I was looking at our internal HPL Staking dashboard and I realised just how much our users were saving through volatility due to their HPL Stakes. I was trying to put a name to this pattern over the past week in Singapore and as I was chatting to people there I realised that HPL staking aligns very closely with a model we see in the Institutional world. Introducing- HPL Staking as Rate Insurance Think about it like this, HPL staking is paid out as a rebate of borrow cost. This means that to benefit from it you have to be an active borrower on HyperLend, paying out Interest on your position consistently over time. As a borrower your key exposure is interest rates, if you borrow stables they set your hurdle rate that you need to beat as you deploy the stables elsewhere, if you're looping they determine how profitable your spot leverage can be. Rates stay low, great, rates go up, less great. HPL staking is an intentionally simple model. Users make an upfront purchase, just like paying an insurance premium, and from then on they receive rebates. When rates spike HPL rebates spike proportionately, ensuring that when market conditions change, or large users rebalance you as the user will always be paying a significant amount less interest than a user who does not stake HPL. To make things even better, when rates are low HPL continues to pay out a rebate, offsetting costs and pretty comfortably paying for the cost of the position in most well managed uses. TradFi uses Insurance to offset risk in all sorts of positions, so why wouldn't you use that tool when borrowing against your hard earned positions?