The Hyperdrive token is coming, and the more you engage with the protocol, the larger your allocation will be. Hyperdrive Miles are the key. They reward users who provide liquidity, engage in leveraged rate operations, and utilize Fixed Borrow.
What Are Hyperdrive Miles?
Hyperdrive Miles are your on-chain record of engagement with the protocol. Several actions you take—supplying liquidity, opening Shorts, or borrowing at fixed rates—earn you Miles.
Miles are permanently tied to your address. They can’t be transferred and never expire.
Why do they matter? Your Hyperdrive Miles will determine your allocation of Hyperdrive’s new token, which will replace ELFI, Element DAO’s legacy token.
Miles Grant You Access to the Airdrop
Hyperdrive will reward users who have accumulated Miles with an allocation of the new token. Details on the distribution date are coming soon, but one thing is clear:
- Users with a larger share of Miles will receive a larger share of the new token.
If you’ve been using Hyperdrive as an LP, you’ve already been accumulating Miles since day one. And if you haven’t started yet, there’s still time to boost your share before the cutoff date.
Important: The current token, ELFI, will not coexist with the new token in the long run. ELFI holders will go through a migration process to transition to the new token once it launches on Ethereum.
How to Accumulate Hyperdrive Miles
There are three primary ways to earn Miles:
Providing Liquidity (LP)
Liquidity providers play a critical role in Hyperdrive and are rewarded with:
- 1 Mile per $1 supplied, per year.
For example, if you supply 10,000 DAI to the Savings DAI pool:
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After one year, you will have earned 10,000 Miles (on top of the variable yield).
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If you withdraw after six months, you will have 5,000 Miles.
If you’ve been an LP since Hyperdrive’s launch, you’ve been earning Miles all along.
Taking Short Positions
Opening a Short in Hyperdrive lets you gain leveraged exposure to variable rates by paying a fixed amount upfront. The higher the multiplier, the more Miles you earn.
Users with open Short positions will be rewarded with:
- 1 Mile per $1 paid, multiplied by the exposure multiplier, per year.
If a pool offers a 20x multiplier, every dollar you pay to open a Short earns you 20 Miles per year. Multipliers vary by market.
Let's go through an example to make this clearer:
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You open a Short in the Lido stETH pool, paying 1 ETH (~$1,900) to get variable yield exposure at a 68.2x multiplier.
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If the Short runs for 182 days, the Miles earned are 64,612 (1,900×68.2*182/365)
That’s a substantial boost to your future token allocation.
Not all pools have the same multipliers—some offer much higher rewards than others. Keep an eye on X and Discord for updates on the latest opportunities.
Remember: Miles for Shorts accrue as long as the position is open. Any open Short between February 1 and April 30 will qualify for the airdrop.
Opening a Fixed Borrow Position
Fixed Borrow allows users to lock in a borrowing rate on Morpho markets while earning Miles at the same multiplier rate as Shorts.
- 1 Mile per $1 paid, multiplied by the exposure multiplier, per year.
Imagine you pay 1,500 DAI to open a Fixed Borrow position in the USDe/DAI pool at a 25x multiplier.
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Over one year, you would earn 37,500 Miles (1,500 × 25).
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If the position runs for six months, you would earn 18,750 Miles.
All Fixed Borrow open positions between February 1 and April 30 will receive Miles as explained above.
Start Now
Earn Miles and claim your stake in the new token—whether you're providing liquidity, leveraging variable rates, or using Fixed Borrow. Maximize your allocation before the window closes on April 30 (subject to extension).
🔗 Check your Miles → https://app.merkl.xyz/user/
🏆 Track your rank → https://app.hyperdrive.box/leaderboard
🏎️ Start earning now → app.hyperdrive.box
Jpin Hyperdrive’s Discord server, stay updated and connect with other contributors
