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DeFi Native Money — Solana
Hylo Strategy Guide
Hylo is a suite of DeFi products on Solana built around two symbiotic tokens backed by a shared pool of Solana LSTs: hyUSD — a decentralized stablecoin pegged 1:1 to USD, and xSOL — a tokenized asset providing long-term leveraged SOL exposure without liquidations, oracles, or funding fees. xSOL absorbs SOL price volatility so hyUSD stays stable. All LST staking yield flows exclusively to sHYUSD Stability Pool holders.
sHYUSD APY
~10–20%
real LST staking yield
xSOL leverage
2x–3x
dynamic, no liquidation
▶ Start on Hylo — Season 1 is live
Mint hyUSD, stake sHYUSD or go long SOL with xSOL. Every position earns XP toward the airdrop.
ref: hylo.so/leverage?ref=LPZ56P
How the protocol works
∞ The Hylo invariant
LST Collateral TVL
=
hyUSD supply
+
xSOL market cap
Deposit LSTs (JitoSOL, mSOL, bSOL, hyloSOL…) as collateral, then mint either token. hyUSD is always $1 — when SOL price moves, xSOL absorbs all the volatility. SOL pumps → xSOL captures the gain at variable leverage (typically 2x–3x). SOL dumps → xSOL takes the loss so hyUSD stays pegged. No external oracles — xSOL price is computed purely from on-chain pool math. All LST staking rewards go exclusively to sHYUSD holders in the Stability Pool.
XP Multipliers (Season 1)
xSOL
20x
per $ / day
hyUSD
5x
per $ / day
sHYUSD
1x
per $ / day
hyloSOL
1x
per $ / day
hyloSOL+
5x
per $ / day
Choose your strategy
Stable Holder
hyUSD → hold
5x XP
per $ / day
Deposit LSTs, mint hyUSD and hold. Earns 5x XP per dollar — efficient airdrop farming with minimal risk. Redeemable at $1 anytime, zero slippage, guaranteed by the protocol.
Risk
Very Low
Yield Stacker
hyUSD → sHYUSD
― APY
real yield, not emissions
Stake hyUSD into the Stability Pool → receive sHYUSD. Collects all LST staking rewards from the entire TVL — xSOL and unstaked hyUSD holders receive none by design. Yield auto-compounds each epoch. Note: at extreme stress (CR < 130%), sHYUSD can auto-convert to xSOL.
Risk
Low–Med
SOL Bull
hyUSD → xSOL
20x XP
+ variable 2x–3x SOL upside
Mint or buy xSOL for long-term leveraged SOL exposure — no margin, no funding fees, no liquidation. Leverage is dynamic (typically 2x–3x) based on hyUSD supply. SOL pumps → xSOL pumps harder. SOL crashes → xSOL drops more, but you are never force-sold.
⚡ tothemoonsoon pick
★ Max XP rate
Risk
Medium–High
💡 tothemoonsoon play: Start with hyUSD hold (5x XP, near-zero risk) as your base. Migrate part to sHYUSD for the real yield on top. Only add xSOL if you're genuinely long-term bullish on SOL — the 20x XP is real but so is the downside.
🔒 xSOL ≠ perps: xSOL is a token, not a margin position — you cannot be liquidated. But if SOL drops 50%, your xSOL drops more than 50%. Think leveraged ETF with variable 2x–3x ratio. Great for holders, bad for panic sellers.
✅ Real yield: sHYUSD APY comes from actual LST staking rewards concentrated among Stability Pool depositors only. Not token emissions — sustainable and fully on-chain.
⚠️ Stability Pool auto-conversion: If CR drops below 130%, the protocol can auto-swap your sHYUSD into xSOL to protect hyUSD's peg. Higher yield = compensation for this tail risk. Always check the Risk Dashboard before depositing.
⚠️ LST depeg risk: Hylo's collateral is a basket of LSTs. A depeg event on any of them affects the entire pool. Audited by OtterSec (May 2025) — but smart contract risk always exists in early DeFi.
