1/ @Pear_Protocol, a market-neutral, relative-value trading platform, has strategically pivoted to integrate with HyperCore.
We break down its recent funding round, potential tokenomics shift, volumes, and valuations:
2/ Originally launched on GMX and Symmio, Pear Protocol offers streamlined single-click long-short pair trading with up to 60x leverage.
Unlike isolated margin (individual liquidation risk) or cross-margin (single liquidation threshold), Pear's Cross-Leg Engine optimizes collateral and mitigates risks through correlation analysis of paired assets.
3/ Pear faced challenges from declining volumes on key underlying platforms: Symmio dropped from $1B to under $100M monthly, and Vertex ceased operations entirely.
Despite these headwinds, Pear maintained consistent weekly volumes exceeding $10M in 77% of weeks since September 2024, demonstrating clear resilience.
4/ Pear’s shift to Hyperliquid leverages the platform’s 80% share of decentralized perpetual trading volumes.
Pear's integration into Hypercore, still in closed beta, has already generated $12.8M weekly volume, suggesting strong latent demand.
Hyperliquid’s HIP-3 introduces 280+ markets annually but lacks customizable collateral options, uniquely positioning Pear as a provider of flexible cross-collateral pair trading for these new markets.
5/ Valuation metrics remain compelling: Even before public launch on Hypercore, Pear trades at a circulating P/S ratio of 13x ($6.6M market cap) and 30x FDV ($17M),
Tokenomics strongly favor holders, offering 80% revenue sharing translating to 20% staking APY, alongside potential governance-driven buyback-and-burn mechanisms.
6/ Pear recently secured $3–4M funding from institutional VCs within the Hyperliquid ecosystem.
Significantly, the price of the strategic round was at a 15% premium to 30-day TWAP, with a 12-month linear vesting period starting in September.
7/ To model future volumes we benchmarked Pear's historical market share from GMX and Symmio, then projected Pear could capture 10% of these historical levels on Hyperliquid.
Additionally, we projected forward volume using a time-series forecast for Hyperliquid.
8/ Our modeling presents three scenarios:
- Bull scenario: Pear captures 0.92% of Hyperliquid’s volume, predicting $980M weekly trading volume.
- Base scenario: Pear captures 0.5%, predicting $550M weekly trading volume.
- Bear scenario: Pear captures 0.08%, predicting $100M weekly trading volume.
9/ For comprehensive analysis, detailed valuation projections, token unlock schedules, and further insights, read the full report on @blockworksres.
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