Hyperliquid Tests Borrowing and Lending Module on Hypercore Amid Security Concerns

Hyperliquid, a decentralized trading platform, is reportedly testing a borrowing and lending module on its Hypercore testnet—hinting at a significant expansion beyond its current perpetuals offering. On-chain researcher MLM revealed that the feature, labeled “BLP” (BorrowLendingProtocol), could introduce a native money-market layer to the Hyperliquid ecosystem.

According to MLM, the BLP testnet currently supports only USDC and PURR, but even limited asset integration indicates the foundation of a broader lending framework. If fully deployed, the module would enable users to borrow, supply, and withdraw assets directly within the Hyperliquid environment—creating a self-contained DeFi ecosystem.

MLM added that embedding a lending protocol could also allow Hyperliquid to roll out multi-margin trading safely. In this structure, traders’ margin positions would be backed by verifiable lending pools instead of isolated balance sheets. This model mirrors the transparent systems used by leading DeFi platforms, improving both risk management and leverage visibility.

A native lending layer would also expand Hyperliquid’s reach in the DeFi space, reducing the need for external lending protocols and consolidating user activity within its ecosystem. Such integration could strengthen liquidity flow, enhance capital efficiency, and attract traders seeking a seamless trading and borrowing experience.

However, while Hyperliquid explores innovation, users face growing security threats. A fake Hyperliquid mobile app recently appeared on the Google Play Store, despite the exchange not offering any official mobile application. Crypto investigator ZachXBT warned that the fraudulent app is a phishing scam designed to steal private keys and wallet credentials. He linked it to an Ethereum address responsible for stealing over $281,000 in assets.

This incident underscores the increasing sophistication of crypto-related scams. As Hyperliquid expands its ecosystem, users are urged to stay vigilant and download only verified software to safeguard their funds.