Hylo: stable yield or leverage without liquidation

Who it's for

Two kinds of users:

• Yield seekers who want a dollar-denominated return backed by SOL staking, via sHYUSD.
• SOL bulls who want 2 to 3x exposure without liquidation risk, via xSOL.

How it works

Hylo takes LST collateral and splits it into two tokens. hyUSD is a dollar stablecoin. xSOL absorbs SOL's volatility: when SOL rises, xSOL rises faster; when SOL falls, xSOL falls faster, so hyUSD stays at a dollar. Staking hyUSD as sHYUSD earns the collateral's staking yield plus protocol fees.

Steps: stable yield

1. Open Hylo and connect.
2. Mint hyUSD with SOL or an LST, or buy it on a DEX.
3. Stake into sHYUSD. Yield accrues to your position.
4. Optional: lock a fixed rate with PT-hyUSD on Exponent.

Steps: leveraged SOL

1. Mint xSOL with SOL or an LST.
2. Hold. There's no loan and no liquidation; the leverage is built into the token.
3. Size it as a high-risk position.

What to expect

sHYUSD yields come from staking plus fees and stability-pool activity; Hylo reported around 17% APY in mid-2026, and eHYUSD (delta-neutral, launched July 2026) around 8%. Rates move, so check the app. xSOL tracks roughly 2 to 3x SOL's moves.

Risks

• xSOL drawdowns: in a sharp SOL fall, xSOL can lose most of its value, even without liquidation.
• Peg stress: hyUSD's peg depends on the collateral ratio; deep crashes test it.
• Stability pool: sHYUSD stakers may absorb collateral during stress events in exchange for yield.
• Smart contract risk (audited by OtterSec in 2025).
• XP points reward activity, but Hylo hasn't confirmed what they convert into.

Exit plan

Unstake sHYUSD to hyUSD, then redeem or swap to USDC. Sell or redeem xSOL back to SOL.