1/ Hylo is building a new ... | Solana Insiders 🔬 OKX Feed

1/ Hylo is building a new DeFi primitive on Solana. Where stablecoins earn real yield and leverage comes with zero liquidation risk.. It offers: ✅ A fully backed, yield-generating stablecoin ✅ Leverage with no funding costs, no liquidations, and no active management Hylo is designed to stay resilient through volatility while remaining capital efficient and fully on-chain… Let’s explore how it works🧵↓

2/ The Problem: Traditional Leverage and Centralized Stablecoins Have Weak Points Over 90% of Solana’s $11B stablecoin supply is dominated by USDC and USDT.. both centralized, off-chain, and fully custodial. They move massive volume but offer no native yield and carry counterparty risk. At the same time, DeFi leverage is burdened by perpetual fees and forced liquidations. @hylo_so removes both weak points: It introduces a fully backed, yield-bearing stablecoin (hyUSD) and a liquidation-free leverage system (xSOL), all built natively on Solana’s staking layer. No liquidations. No funding costs. No off-chain trust. Just a resilient, capital-efficient engine designed to hold through volatility.

6/ How Hylo Balances Risk: Capital Efficiency in Action When SOL’s price increases, xSOL captures amplified gains. When SOL’s price drops, xSOL absorbs the losses to preserve hyUSD’s stability. The system continuously rebalances exposure between hyUSD and xSOL using protocol-controlled pricing.

10/ Hylo’s Yield Engine: Transparent, Sustainable Rewards Hylo’s rewards are simple and sustainable: 🔹 SOL staking rewards flow from the collateral pool 🔹 Protocol fees from minting and redeeming provide additional revenue 🔹 Rewards automatically flow to sHYUSD holders There are no artificial emissions or inflationary rewards. The system is powered by real staking income and real on-chain fees.

11/ Slippage-Free Minting and Redemption Hylo users mint and redeem hyUSD and xSOL directly from the protocol at Net Asset Value (NAV) with zero slippage. Conversions are handled entirely within the protocol’s internal pool... Hylo does not rely on AMMs or external liquidity for these core operations. This keeps conversions fast, accurate, and efficient at all times.

12/ xSOL: Dynamic Leverage That Self-Adjusts xSOL’s leverage ratio automatically adjusts based on system health.. when the system is overcollateralized, xSOL offers higher leverage. When CR drops, the leverage ratio reduces to protect the system.

14/ Zero-Liquidation Architecture: How It Works Most DeFi protocols liquidate positions when collateral drops below a threshold. Hylo does not use liquidations. Instead, the system shares losses across xSOL holders when needed. This protects users from forced closures... Hylo absorbs volatility at the protocol level, not the individual level, creating a safer environment for everyone.

17/ The Hylo Team: Builders Behind the Protocol Hylo is built by a team with deep Solana DeFi experience: 🔸Shoom (@Shoomsol ) – Protocol architect and risk management 🔸0xPlish (@0xPlish ) – Engineering and smart contract development 🔸Sape (@sape_sol ) – Growth and user experience lead Their focus is on building capital-efficient, resilient products that expand Solana’s DeFi stack.

18/ Early Adoption: Key Growth Metrics Hylo is currently in beta and already showing strong organic growth: 🟢 Total hyUSD circulating: around $2.5 million 🟢 Total xSOL circulating: around $2.7m 🟢 Total Value Locked: around $5 million

19/ Why Hylo Matters for Solana’s Future Solana’s stablecoin economy is booming.. stablecoin supply doubled to over $11B in early 2025... But 90% of that activity relies on USDC and USDT: off-chain, centralized, and yield-less. Hylo fills the missing layer with a fully decentralized, on-chain alternative: ✅ A native, yield-bearing stablecoin (hyUSD) ✅ Liquidation-free leverage (xSOL) ✅ Full integration with Solana’s staking layer This dual-engine system turns LSTs into productive capital.. bootstrapping a resilient, Solana-native stablecoin layer built for sustainable growth.

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