Borrow without fear of liquidation.

Two routes, one hedge.

Your loan can sit in one of two places. At launch, it sits on a leading HyperEVM lender, and Amaranth manages it for you. Later, it can sit in Amaranth's own markets on Elysium. Either way, the hedge works the same.

Two legs that cancel out.

A hedged loan has two legs. Your collateral sits in the lending market. A short of the same asset sits on HyperCore. When price falls, the collateral loses and the short gains. The total barely moves, so the loan stays safe.

Price moves, value holds

Without a hedge, your position rises and falls with the asset. With a full hedge it stays flat. Half a hedge sits in between: you keep half the upside and take half the fall.

Supply once, earn everywhere.

When Amaranth markets open on Elysium, lenders deposit USDC into the Amaranth vault. The vault supplies it to isolated markets, one market per collateral type. Borrowers pay interest, and it flows back to the vault. On connected lenders, lending happens on the lender itself.

• Isolated markets. Each market pairs one collateral with USDC and has its own limit, oracle and rate. A problem in one market cannot reach another.
• The vault. A standard ERC-4626 vault. Your shares grow as interest comes in. Withdraw whatever is not lent out at that moment.
• Caps and pauses. Every market has a supply cap and a borrow cap. A guardian can pause new borrowing in a market without touching repayments.

Dollars against what you hold.

Lock collateral, borrow USDC up to a limit, repay any time. Your loan is healthy as long as the debt stays under the limit times the value of what backs it. The route sets the limit and the source of the dollars.

1. Deposit collateral into the market for that asset.
2. Borrow USDC up to the limit. Interest starts accruing.
3. Turn on the hedge if you want. The next section covers it.
4. Repay in part or in full, then withdraw your collateral.

Your collateral, mirrored.

Pick a hedge ratio on your loan, from none to full. Amaranth opens a short of that share of your collateral on HyperCore, in an account only the protocol controls.

Why the protocol holds the short

If the short sat in your own account, its profit would land with you while the lenders took the loss. So each hedged loan gets its own HyperCore account, owned by an Amaranth contract. The market counts that account's equity as part of your position. On liquidation, it closes the short and brings the money home. That is what makes the hedge count toward your loan.

Who pays for the short

You do, from your own loan. When the hedge opens, the margin it needs is borrowed alongside your loan and sent straight to your hedge account. Your debt goes up, and so does your equity, by the same amount. No treasury, no outside capital.

Choosing a ratio

The short is tended, not left alone.

A short needs margin, and price moves it every minute. Keepers are bots that watch every hedge account and act when it drifts. Anyone can run one.

The margin band

Each short runs at low leverage, far from its own liquidation on HyperCore. Keepers hold its margin inside a band: they top it up before it falls too low, and sweep any excess above the target.

• Open to anyone. Top-ups and sweeps can be triggered by any keeper, and the protocol pays a fee for it, so there is no single bot to fail.
• Read, don't assume. After every action, keepers read the account's real state from HyperCore before the market updates your health.

What the market counts.

On a connected lender, the lender's own limit applies, and the hedge works by paying down the loan with the short's profit before it gets near that limit. In Amaranth markets, the market reads the hedge directly.

In Amaranth markets, your position is your collateral plus the equity in your hedge account. Your limit blends two limits: a lower one for the unhedged share of your collateral and a higher one for the hedged share, because its value barely moves.

Funding

Perp shorts pay or receive funding. Received funding adds to your hedge equity. Paid funding takes from it. Both are counted every time your health is checked.

When it can still happen.

A hedge removes price risk. It does not remove every risk. A loan is liquidated when its debt passes its limit, for any reason:

• No hedge, or a small one, and price falls far enough.
• Interest builds up past the limit over time.
• Funding stays negative for long enough to drain the hedge equity.
• HyperCore closes the short through auto-deleveraging and it isn't reopened in time.

One loan, one crash.

The same loan without a hedge would have been liquidated on the way down.

Where each piece lives.

At launch, Amaranth runs on HyperEVM and places loans on connected lenders. Amaranth markets run on Elysium, Kinetiq's layer 2 for Hyperliquid, which settles to HyperEVM. Shorts always run on HyperCore.

Exits from Elysium to HyperEVM wait out a challenge period, so the protocol keeps a USDC buffer on HyperCore. Margin is paid from it instantly, and swept surplus refills it.

Rates that bend.

The borrow rate follows how much of a market is lent out. It climbs slowly at first, then steeply past a target, which pulls new deposits in and nudges borrowers to repay, so lenders can always withdraw.

What can go wrong, and the answer.

A hedge that reads the weather.

One short per loan is the start. The best hedge for a position changes with the market, so Amaranth grows into a full kit for traders: you choose what sits on the other side, and Amaranth recommends a fit for the conditions of the day.

Planted now, blooming in order.

Words, plainly.

Collateral

What you lock to borrow against, such as HYPE or kHYPE.

Borrowing limit

The share of your position's value you can owe before the loan can be liquidated.

Hedge ratio

How much of your collateral is mirrored by a short, from none to full.

Hedge account

The HyperCore account, owned by an Amaranth contract, that holds the short for one loan.

Hedge equity

Everything in the hedge account: margin, unrealised profit or loss, and funding.

Keeper

A bot that tops up margin, sweeps surplus and keeps hedges in line. Anyone can run one.

Sweep

Moving a short's profit out of the hedge account to pay down your debt.

Funding

The periodic payment between longs and shorts on a perp. Shorts usually receive it.

Auto-deleveraging

HyperCore closing profitable positions to cover losses elsewhere during extreme moves.

Connected lender

An existing HyperEVM lending protocol that Amaranth places loans on and hedges.

Isolated market

A market with one collateral and one loan asset, whose risk stays inside it.