Felix Protocol: Your Complete Guide to feUSD, Yield Vaults & the 2025 Points Program

Felix Protocol is a next-generation decentralized finance (DeFi) platform and an officially authorized fork of the well-known Liquity protocol. It’s purpose-built for the Hyperliquid L1 ecosystem, offering users access to stablecoin borrowing, collateralized lending, and on-chain yield strategies—all powered by the feUSD synthetic dollar, which is pegged 1:1 to the US Dollar.

This innovative protocol merges Liquity’s proven stability with features tailored for Hyperliquid, enabling capital-efficient lending while offering opportunities to earn passive income through structured vaults.

What Is Felix Protocol?

Felix operates as a collateralized debt position (CDP) platform where users can lock up HYPE tokens as collateral to mint feUSD, the platform’s native stablecoin. These stablecoins can then be deposited into yield vaults, used in liquidity pools, or traded across the broader DeFi ecosystem.

The protocol ensures stability and scalability through strict collateralization ratios, audit-backed smart contracts, and a phased rollout approach. By leveraging the strengths of Liquity and tailoring it to Hyperliquid, Felix introduces a robust infrastructure for borrowing and earning in DeFi.

What Is feUSD?

feUSD is a synthetic stablecoin created within the Felix Protocol. It is overcollateralized and soft-pegged to the USD, ensuring high levels of price stability while remaining decentralized and censorship-resistant. Users can mint feUSD by locking HYPE as collateral on the Felix platform.

Felix Points Program (Launched April 11, 2025)

Felix has officially launched a points-based rewards program starting April 11, 2025, at 12:00 PM UTC. This initiative is part of a broader strategy to incentivize early users and promote ecosystem growth. The mint cap for feUSD has also been expanded to 5 million, reflecting the platform’s readiness to onboard more liquidity.

Although full details on token rewards or airdrops remain undisclosed, this points system hints at a future token launch with possible retroactive benefits for active participants.

How to Start Using Felix Protocol: Step-by-Step Mainnet Guide

Here’s how to get involved with the Felix mainnet and position yourself for rewards through the points program:

 1. Connect Your Wallet
Visit the official Felix Protocol dApp

Click “Connect Wallet” in the top right

Choose a supported Web3 wallet (e.g., MetaMask, Rabby, WalletConnect)

Switch your network to Hyperliquid L1

 2. Deposit Collateral (HYPE)
Acquire HYPE tokens from the Hyperliquid spot market

Bridge HYPE tokens to the Hyperliquid EVM environment

Go to the “Borrow” tab

Deposit HYPE as collateral

 3. Mint feUSD Stablecoins
After depositing HYPE, enter the amount of feUSD to mint (minimum: 2000 feUSD)

Pay close attention to your collateralization ratio to avoid liquidation

Confirm the transaction in your wallet

Your minted feUSD will appear in your wallet once processed

 4. Earn Yields Through Vaults
Navigate to the “Earn” section

Select a feUSD vault with attractive APY

Deposit your feUSD into the vault

Approve token spending and confirm the transaction

Monitor your passive income through the dashboard

 5. Provide Liquidity (Optional)
You can supply liquidity to feUSD pairs on DEXs like HyperSwap or Kittenswap

Earn trading fees and potentially qualify for additional points

6. Share Your Referral Link
Visit the Points page

Join the invite program and get your unique referral link

Share with friends and earn points based on their protocol activity

Felix Testnet Participation Guide

Want to experiment before using the mainnet? The Felix testnet provides a great sandbox environment:

 1. Get Testnet Tokens
Go to: https://hyperliquid.faucet.vercel.app

Connect your wallet (Rabby recommended)

Make sure you have at least 0.1 HYPE on Hyperliquid to qualify

Alternatively, request test tokens from the Felix Discord community

 2. Connect to Felix on Testnet
Navigate to the Felix testnet application

Connect your wallet and ensure it’s on the Hyperliquid testnet

 3. Borrow & Earn on Testnet
Go to the “Borrow” section

Deposit collateral and mint feUSD

Head to the “Supply” section and deposit feUSD into test vaults

Track your simulated yield accumulation

4. Stay Active for Higher Rewards
Perform regular transactions

Submit feedback via Discord

Engage on X (Twitter) and follow project updates

Airdrop Tips: How to Maximize Your Chances

While no airdrop is confirmed yet, here are a few strategies to potentially qualify if one is announced:

Maintain consistent on-chain activity, not just one-off transactions

Contribute valuable insights or feedback in Felix Discord

Use a variety of features: borrowing, supplying, liquidity, referrals

Act before April 11 and stay active throughout the points program

Frequently Asked Questions (FAQs)

 Is there an official airdrop for Felix Protocol?
No, Felix hasn’t confirmed an airdrop. The points program is currently the main incentive mechanism.

 What’s the minimum borrow amount?
The minimum amount of feUSD that can be borrowed is 2000.

Can beginners participate in the points program?
Absolutely. New users are welcome, and engaging with the platform before and during the program increases potential reward eligibility.

Final Thoughts

Felix Protocol is paving the way for a stable and capital-efficient DeFi environment on Hyperliquid L1. With its combination of overcollateralized stablecoin borrowing, high-yield vaults, and the new points system, it’s a promising opportunity for DeFi users to earn rewards while engaging with a robust protocol.

Although the official airdrop has not been confirmed, proactive users can start interacting with Felix today and position themselves for future incentives.

Stay Ahead of the Curve

Looking for more airdrop-worthy projects? Check out our curated list of upcoming DeFi opportunities and be the first to benefit from the next wave of token launches.