Key Developments in Decentralized Finance
Hyperliquid is currently testing the BorrowLendingProtocol (BLP) on the Hypercore testnet. This development was initially reported by user MLM on X, formerly known as Twitter.
The testing of the BLP protocol on the Hypercore testnet by Hyperliquid signifies a potential expansion of its existing decentralized exchange (DEX) model. This could lead to the integration of native decentralized finance (DeFi) lending and margin trading functionalities, with initial focus on USDC and PURR pairs.
Introduction to Hyperliquid's Testing Phase
Hyperliquid has initiated testing for its BorrowLendingProtocol (BLP) on the Hypercore testnet. The initial report of this activity came from user MLM on X (formerly Twitter) on November 9, 2025.
This testing phase involves the exploration of lending and borrowing capabilities with USDC and PURR pairs, as detailed in reports by key analyst MLM on X. At this stage, there have been no official collaborations announced with other projects, nor have there been any public statements from Hyperliquid's executive team regarding this initiative.
Market Reaction and Impact on HYPE Token
Following the announcement of the BLP testing, the HYPE token experienced a notable increase of 7%. This market reaction suggests a positive reception from investors who appear confident in Hyperliquid's strategic expansion plans and the potential for enhanced liquidity and increased user engagement.
Industry analysts suggest that this development could significantly alter Hyperliquid's standing within the DeFi ecosystem, potentially influencing the trajectory of future lending and margin trading markets. This anticipated upgrade positions the project towards greater decentralization and deeper integration within the broader DeFi landscape.
Speculations and Future Outlook
The successful rollout of this protocol could have substantial implications, particularly if it expands to support major cryptocurrencies such as ETH and BTC. The community is actively awaiting any updates regarding mainnet integration, which could have ripple effects across the wider DeFi markets.
The ongoing BLP test is anticipated to drive technological advancements and attract interest from significant institutional players. Observers are noting the potential for increased scrutiny from regulatory bodies, although no official statements have been made by any regulatory authority concerning Hyperliquid's current protocol testing.
"Hyperliquid team is testing protocol BLP on Hypercore testnet; speculated as BorrowLendingProtocol, trialing lending/borrowing with USDC and PURR. Could launch multi-margin trading, but details unconfirmed." — MLM, Analyst