Overview

Asphodel is a market layer on Elysium, the Arbitrum Orbit L2 that Kinetiq built for Hyperliquid. It has three parts that feed each other. The launchpad starts tokens on a fair curve. The pools hold the liquidity those tokens graduate into. The perps venue lets traders take leveraged views on the Hyperliquid majors against a HYPE vault.

Everything settles onchain, in HYPE, in three contracts. There is no offchain order matching and no custody.

Network

Asphodel currently runs on the Asphodel devnet: a standard EVM chain set up like Elysium, with HYPE as the gas token, so the full product can be used before Elysium mainnet. Devnet HYPE has no value and comes from the faucet in the wallet menu, 5 HYPE every 12 hours.

The same contracts deploy unchanged to Elysium: testnet is chain 99801, mainnet is chain 99901 and goes live on November 9.

Launchpad

Creating a token deploys a plain ERC20 with a fixed supply of 1,000,000,000 and 18 decimals. There is no mint function, no owner and no tax.

The curve

800,000,000 tokens are sold on a virtual constant product curve. The curve starts with virtual reserves of HYPE and tokens, so the first buyer gets a defined price instead of an empty pool. Price is virtualHype / virtualToken and every buy or sell moves along x * y = k.

Graduation

When the last curve token is bought, the contract takes the HYPE raised, subtracts a 2% graduation fee, and creates a TOKEN / HYPE pool on Asphodel Pools with the remaining 200,000,000 tokens. The LP shares are credited to 0xdead, so that liquidity can never be removed. A buy that overshoots the curve is refunded the difference in the same transaction.

On testnet the curve is tuned small so tokens can graduate with faucet amounts. The admin can set the starting virtual reserves for new launches; tokens already live keep their curve.

Pools

Every pool pairs one ERC20 with native HYPE using the constant product formula. Liquidity providers receive pool shares tracked inside the contract and earn 0.30% of each swap, which stays in the reserves. A further 0.05% goes to the protocol. Anyone can open a pool for any ERC20 on Elysium from the Pools page.

Perps

Markets: HYPE, BTC, ETH, SOL and XRP. Positions are sized in USD and collateralised in HYPE. Max leverage is set per market, up to 40x on BTC and ETH.

Prices

Each open, close and liquidation carries a price bundle taken from Hyperliquid mid prices and signed by the Asphodel oracle key. The contract checks the signature, the chain ID, its own address and that the bundle is no older than two minutes. Index 0 of every bundle is HYPE / USD, which converts USD profit and loss into HYPE. When Elysium ships its HyperCore market data precompile, the oracle moves onchain and reads the book directly.

Liquidation

A position is liquidated when collateral plus PnL, minus the closing fee, falls below 1% of its size. Liquidation is permissionless. The caller earns 10% of whatever collateral is left and the vault takes the rest. A keeper run by Asphodel also sweeps positions continuously.

Vault

The vault is the counterparty to every trade. Depositors receive shares priced at vault HYPE divided by total shares. The vault earns 80% of perps trading fees, trader losses and liquidated collateral, and pays trader profits. A single position cannot exceed 25% of the vault value. Profit on a close is capped at what the vault holds.

Fees

Contracts

Risks

This is testnet software and has not been audited. Testnet HYPE has no value. The perps oracle is a signed offchain price until the Elysium precompile is live, so it trusts the signer. Vault depositors lose when traders win. Read the contracts before you put anything into them.