Every convertible bond has two sides: the depositor wants upside with the worst case printed on the box, the protocol wants capital that compounds. Most make you pick one. Ours doesn't — because the deposit itself is what builds the market it settles into.
Here's how a HyperStrategy bond works, in sixty seconds. You deposit USD₮0 during a 24-hour window. One bond per dollar. The moment your deposit lands, it splits in two:
The 25% swaps USD₮0 → $HSTR in one transaction — no manual routing, nothing for you to do.
The swap executes against the HSTR/USD₮0 pool as a market order. Your deposit is literally the bid.
The position can't be reduced or withdrawn while the window is open — after settlement the treasury manages it, on-chain. Rented incentives vanish when APRs dry up; owned depth compounds.
Every deposit lifts the very market its own bond settles into — deeper book, tighter spreads, less slippage.
Then one of two things happens at close. If price clears the strike, your bonds convert into $HSTR at the strike rate, at full face — no fee — using the fixed closing TWAP outcome, with no guarantee about later market prices. If it doesn't? 75% comes back in cash. Full stop. The 25% isn't gone — it's depth in the very pool you just bet on: locked while the sprint is live, treasury-managed after. No coupon math, no vesting cliff, no liquidation level to babysit.
The relevant price is the 30-minute TWAP ending at maturity, not a temporary strike touch. Settlement records one permanent payout asset. Once HSTR claims are funded, holders may claim later without an expiry; cash is no longer an option. Cash claims instead expire seven days after maturity and require treasury USDT0 and allowance.
Run it with real numbers, at the planned $0.22 strike. Deposit $1,000 during the window — you hold 1,000 bonds. HSTR closes the window at $0.30: those bonds convert into 4,545 HSTR at full face, worth about $1,364 — a 36% gain, settled in a day, fee-free. HSTR closes at $0.10: $750 comes back in cash, and your 25% is live as depth in the pool that printed that price — locked while the sprint is running. The cash outcome includes the 25% LP allocation. HSTR price risk, claim expiry and smart-contract risks remain. The upside is the whole market. And on top of either outcome, a separately funded participation reward in $HSTR is planned — win or lose.
And this isn't a pitch deck. Tranches I and II already ran this cycle on HyperEVM — two windows, closed on schedule, settled on-chain at the recorded close, with the refund path paying depositors back. That's the track record: not promises, executed settlements.
Cash outcome: claim 75% within seven days. HSTR outcome: your token amount is fixed, but its market value can fall.
Best case: full-face $HSTR at the strike, fee-free.
That asymmetry is the entire product.
Your bonds become $HSTR at the strike rate, at full face — no fee. The full HSTR allocation is minted into reserve once the closing TWAP qualifies and settlement succeeds. Your token amount then stays fixed, even if price falls before you claim. A planned treasury participation airdrop is separate from this entitlement.
75% returns in cash. The 25% is already at work as depth in the pool — locked while the sprint is live, treasury-managed after. The fee is the market, not a line item. You get a full 7 days after close to claim — cash, on-chain, when you want it. A planned treasury participation airdrop is independent of this outcome. Cash settlement creates no conversion supply; redemption is paid from the USDT0 the contract has held since your deposit.
Why it's win-win — arithmetic, not adjectives.
There is no scenario where the depositor's fee disappears into a pocket.
There is no scenario where the protocol mints below its discipline line.
Cash claims are paid from USDT0 escrowed in the bond contract; the treasury receives it only after the outcome is settled.
Both sides eat first at their own table.
The treasury plans a separately funded HSTR participation airdrop, proportional to deposits and independent of the closing outcome. Its amount and timing are discretionary. The Tranche III bond contract does not fund or enforce this reward; it is separate from your on-chain bond claim.
You converted at full face, fee-free, into a market trading above your price — with a separate participation airdrop planned by treasury.
75% is back in cash, your 25% is live as market depth — with the planned participation airdrop independent of the cash outcome.
Deposit → settle → eligible for the planned airdrop. Treasury sets its amount and timing separately; the bond contract does not enforce this reward.
This is the part most bond desks miss. Ours is built in from deposit #1.
25% of every deposit becomes protocol-owned liquidity in the $HSTR pool — and the zap leg bids the price up on its way in. Your money constructs the very market your bond converts into.
While your sprint is live, that slice can't be reduced or pulled; after settlement the treasury manages it, on-chain. Owned liquidity compounds the book: smaller slippage, tighter spreads, more traders — depth that survives long after incentive APRs would have dried up.
The bond contract holds USDT0 pending the closing outcome. Only funded HSTR settlement releases that cash for the HYPE strategy; a cash outcome keeps it reserved for claims until payment or expiry.
Conversion tokens are reserved at successful settlement when the closing TWAP is at or above strike. With a below-strike closing TWAP, the bond creates no conversion supply: 75% comes back in cash and the 25% keeps working as depth.
A deeper book and stronger backing let the next issuance price higher. Earlier depositors sit on gains; new depositors fund a healthier protocol than the last round.
More depth → less volatility → more trust → more deposits → more depth. Deposits aren't extracted from the market. They're deposited INTO it.
Conversion supply is created only after a closing TWAP at or above strike and successful settlement. Miss it and zero supply was created — 75% comes back in cash, and the 25% becomes the depth.
Lifetime conversion output is capped on-chain. No surprise emissions, ever — the worst case is known before you deposit.
No whale takes the whole float in one address. The raise needs broad hands — exactly who it's built for.
24-hour windows settle at close. Hit the price and convert — miss it and 75% comes back in cash, with a full week to claim it.
The 25% position can't be reduced or withdrawn while the window is open — it's the depth your bond settles against. After settlement the treasury manages it, on-chain.
Every parameter lives in the contract itself — public, on-chain, and fixed before the window opens. Never changed under you mid-flight. Markets punish protocols that mint carelessly; this one structurally can't. And the same rules execute for every address that shows up, the same way, every time. The contract is the pitch — that's the whole point of doing this on-chain.
Bonds are how the treasury raises without begging.
The LP split is how raising also fixes its own market.
The strike is how discipline survives euphoria.
The flywheel is how all of it compounds instead of resetting.
Deposit → depth → demand → backing → repeat.
You bring the stablecoins. We build the market. Everyone keeps their option.
24-hour window. Struck well above market. 75% back in cash if it doesn't clear — yours to claim for a full week — and 25% of every dollar builds the liquidity you're betting on. A separate treasury HSTR participation airdrop is planned, with amount and timing to be announced.