Karla Barker 
What Are Hyperliquid Vaults?
Hyperliquid vaults are a closely watched feature on the decentralized derivatives exchange. They let traders participate in shared strategies.
Think of a vault as a pooled trading account. A vault leader runs a strategy, while other users deposit funds and get exposure to the results. If the strategy makes money, depositors share in the profits. If it loses money, they share in the losses too.
What makes vaults interesting is that they’re built directly into HyperCore. Unlike basic yield products that just lend or rebalance assets, vault strategies can use the exchange’s full infrastructure. That includes leverage, liquidations, perps, high-throughput execution, and everything else Hyperliquid offers.
This can make them powerful tools for more passive investing. But they can also be risky. Returns can swing sharply in both directions, especially when vaults use leverage or take concentrated directional bets.
An interesting way to think about it is on-chain copy trading with pooled capital. The strategy is fully visible, performance can be tracked, and users can decide if the risk profile fits their portfolio.
Long $HYPE and $BTC, Short “Garbage” Yields 638% APY
One vault on Hyperliquid has grabbed attention after returning 638% APY over the past month.
It’s called “Long $HYPE & $BTC, Short Garbage.” Right now, it manages around $3.03 million in total value locked.
The strategy is 70% $HYPE and 30% $BTC on the long side. It also holds shorts in a basket of at least 10 high-FDV and high-emission coins. The short side represents about 60% of notional exposure.
Looking at the position table, the only losing trade is the $BTC long. But that loss has been offset by funding payouts.
The vault’s overall PnL chart shows a steep climb over the last 30 days, nearing $1.2 million.
Of course, this shouldn’t be seen as a low-risk yield. It’s actually an aggressive leveraged long-short crypto trade. It depends heavily on $HYPE’s price performance. If HYPE drops, the vault could see quick losses. So it’s not for everyone, but for those who understand the risks, it’s a fascinating example of what these vaults can do.