Felix Protocol Update

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• Felix Vaults launch and curator role on Morpho: Felix Protocol announced it will serve as the curator for Morpho on Hyperliquid, following the integration of HyperEVM into the Morpho frontend 1. The vaults are managed by an internal risk team and structured for large traders on Hyperliquid, with the firm indicating that Felix Vaults will begin allocating to additional products developed by the team in late Q4 2025 and early 2026 1. This matters because it expands Felix's role within the Hyperliquid ecosystem beyond its existing lending and CDP products, positioning it as a key risk-management layer for on-chain credit.
• Eight vaults across multiple collateral types: Felix currently operates eight vaults built on Morpho, each corresponding to different collateral assets and risk tranches, offering users exposure to various stablecoins and to HYPE, Hyperliquid's native token 1. Examples include the HYPE vault (which supplies HYPE to borrower markets), the USDT0 and USDC vaults (which allocate liquidity to established, high-liquidity markets), and the USDH vault (which lends Hyperliquid's native stablecoin across curated markets while monitoring peg and liquidity conditions) 1. Additional vaults such as USDT0 Frontier, USDhl Flagship, USDhl Frontier, and USDe operate under distinct risk and allocation guidelines 1.
• Track record and scale: Felix first launched on Hyperliquid in April 2025 with its collateralized debt position product, Felix CDP, followed by the introduction of Felix Vanilla on Morpho in May 2025 1. Since then, Felix has reported over $1 billion in total value locked (TVL) and several hundred million dollars in vault deposits 1. This scale demonstrates meaningful adoption of its leverage, carry-trade, and margin products within the Hyperliquid ecosystem.

Biggest Stories of 2025

• Felix Vaults announced (October 14, 2025): Felix Protocol announced it would serve as the curator for Morpho on Hyperliquid, launching eight vaults across different collateral assets and risk tranches, and disclosing over $1 billion in TVL and several hundred million dollars in vault deposits 1. This remains the project's most significant recent development, establishing Felix as a risk-management layer for on-chain credit on Hyperliquid.
• Felix Vanilla launch on Morpho (May 2025): Felix introduced its vanilla markets product on Morpho, enabling variable-rate lending and borrowing in asset-native tokens 1. This expanded the protocol beyond its original CDP offering and broadened its addressable user base.
• Felix CDP launch on Hyperliquid (April 2025): Felix first launched on Hyperliquid with its collateralized debt position product, Felix CDP, allowing users to deposit collateral to mint feUSD for leverage 1. This marked the protocol's entry into the Hyperliquid ecosystem and laid the foundation for its subsequent products.