Hyperion DeFi, Inc.

Welcome to the Hyperion DeFi 2026 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to Jason Assad, Director of Investor Relations. Thank you. You may begin.

Good afternoon and welcome to Hyperion DeFi's 2026 second quarter earnings call. Joining me today are CEO Hyunsu Jung and CFO David Knox. Before we get started, please note that our remarks today may include forward-looking statements. These statements are subject to risk and uncertainties and actual results may differ materially. During this call, we may use words like anticipate, could enable, estimate, intend, expect, believe, potential, will, should, project, and similar expressions which indicate forward-looking statements. For a more comprehensive discussion of these and other risks, please refer to our filings with the SEC available on SEC.gov and in the IR section of our website at HyperionDeFi.com. We'll also reference certain non-GAAP financial measures today. Please refer to our earnings release and earnings supplement on the website for a full reconciliation of these non-GAAP measures to the most comparable GAAP measures. We'll start this afternoon's call with prepared remarks from Hyunsu and David, followed by Q&A. I'll now turn the call over to our CEO, Hyunsu Jung.

Thank you, Jason. To those joining us today, welcome to Hyperion DeFi's second quarter of 2026 earnings call. A little over a short year ago, Hyperion DeFi was born from what was formerly Inovia. What once was is no longer. As Hyperion DeFi, we revamped the company's operating strategy to the accumulation of hype and directly building in the hyperliquid ecosystem. We made a firm commitment that we would be more than just hype, benefiting from not just holding the asset, but uniquely building multiple businesses atop it that have the potential to utilize it profitably, and most importantly, independent of its underlying price volatility. I'm proud to say that we are continuing to deliver on that promise. To that end, our focus has been on developing unique products and services that actively support the growth of the hyperliquid ecosystem and return that value to our shareholders. Our model is no longer a concept that we ask investors to envision. It has become reality. We continue to lead in designing and deploying strategies that generate differentiated revenues, not just on our hype holdings, but across key on-chain infrastructure, each compounding alongside the fastest moving ecosystem in the digital asset space. I'm most excited to share these developments, covering not just what was accomplished in Q2, but the updates that are happening in real time, which we believe demonstrates our standalone positioning, unique value proposition, and best-in-class business model. At the same time, this was a quarter that truly tested our model. With rapid innovation often comes changes that are challenging to predict and requires a level of adaptivity that can only be found in an agile operation like ours. To address this directly, in May of this year, USDH, the native stablecoin of Hyperliquid, was replaced with USDC, resulting in the wind-down of two of our core hype deployments, accounting for 800,000 hype and impacting our planned revenue roadmap. Regardless, the ability for an operating company to respond to change in real-time is exactly what distinguishes it from a passive vehicle. We are proud to have been able to respond and adapt within weeks and enter the third quarter with stronger, more durable platforms, which we will cover today. I'm grateful for the continued support of our investors and partners as we work diligently to lay foundations that persist and scale with the growth of Hyperliquid. What we're doing has never been done before, and we firmly believe we are asymmetrically positioned to accomplish this, resulting in long-term value creation for our shareholders. I will start, as always, with the Hyperliquid ecosystem. Hyterion's opportunity surface scales with Hyperliquid's execution, and this is one of the most consequential quarters in the ecosystem's history. We saw Hyperliquid cross a milestone that few blockchains have ever approached. Cumulative protocol revenue surpassed $1 billion, with the overwhelming majority of protocol fees continuing to be returned to the token holders through the assistance fund's buyback mechanism. During the quarter, hype reached a new all-time high, and the holder base has continued to broaden. Thank you for joining us. We're already seeing the impacts of this design. Just earlier this week, xStocks, the tokenized equity framework built by Payward, the parent company of Kraken, launched native spot equity markets on HyperCore, enabling on-chain trading for five major equities and ETFs, backed one-to-one by real shares. The tokenized assets include NVIDIA, the S&P 500 ETF, QQQ, SK Hynix, and Micron. This allows on-chain traders to not only access spot equity markets 24-7, but also the ability to use these assets as collateral for DeFi on the Hyper-EVM, where we have spent an extensive amount of time building institutional infrastructure. And perhaps most exciting is that Hyperliquid's newest primitive, HIP4 Outcome Markets, completed its first full quarter on Mainnet. Launched in May, Outcome Markets generated approximately $100 million in volume in the first month alone, and Validated the Value and Structural Advantage of a Unified Financial Layer. Outcome contracts and hyperliquid trade on the same order book in the same account with materially lower fees at market midpoints than incumbent prediction market venues. In late July, subsequent to quarter end, permissionless HIP4 deployment reached testnet. Under the framework, each outcome market deployer must stake 500,000 hype for the duration of activity. Every new market category on Hyperliquid now creates structural locked demand for the core asset on our balance sheet, which grants us continued opportunities for deployment optimization. Each of these developments compounds the others as Hyperliquid continues to execute its vision of becoming the blockchain to house all finance. In parallel, Hyperion continues to position ourselves as the premier institutional gateway to DeFi innovation within Hyperliquid. In this quarter, we focused on repositioning our DeFi monetization strategy, following the sunset of USDH and a clearer path to permissionless deployment on HIP4. May was a massive month for Hyperliquid, an ecosystem aligned with Coinbase and Circle on the AQA V2 standard, establishing the path for 90% of the USDC stablecoin revenue to flow back to the Hyperliquid Assistance Fund, ultimately returning value to hype holders. Although it greatly benefits our balance sheet holdings, the resulting sunset of USDH created unexpected headwinds for our operating businesses. As we announced in June, native markets made the decision to sunset USDH, and the Felix Exchange markets also winded down as settlement across hyperliquid migrated towards USDC. We reiterated our guidance at the time of that announcement, and we reiterate it again today, because the financial impact was immaterial, manageable, and our strategic response was swift. This is the nature of operating in a fast-moving ecosystem. Individual products will come and go. Thank you for joining us. pairing our state-type deployment capacity with a team purpose-built for onboarding new market categories to Hyperliquid. We expect these markets to go live in the coming months with economics that improve upon our prior deployer arrangement in addition to long-term equity and token exposure to SKU. The early metrics are positive with over 40,000 unique users signed up to access SKU's private beta. But we didn't stop at just one new permissionless markets deployment. We also announced today, as part of this release, another house agreement with 500,000 of our staked hypes supporting Entropy, an upcoming HFP3 deployer. Not only does this provide Hyperion multiple opportunities to both support and scale unique businesses on Hyperliquid, but it allows us to converge the building blocks we are developing alongside our partners in this ecosystem. Hyperliquid aims to become the blockchain to house all finance, offering a unified substrate for all forms of financial products, including RWAs, perpetuals, outcomes, and more. I wrote at the beginning of the year that tokenization and the adoption of agentic trading would be key components of driving more financial activity on-chain, and that has continued to be the case. Note, for instance, according to the State of Hybrid Finance report from CoinShares and Token Terminal, deposits into lending platforms and DEXs more than tripled year over year to $7.4 billion, driven by utilization of RWAs, such as tokenized treasuries, private credit, and gold tokens as collateral. We had long been preparing for this shift to occur. Early in the third quarter, we completed our first institutional credit deal through HyperLens Avia platform, lending $1 million USDC against natively staked hype at a rate of 8% APY, far above the overnight rate found in traditional markets. The hype collateral remains in secure custody at Anchorage Digital for the duration of the loan. We expect the Avia platform to scale as demand grows for institutional borrowing and lending against robust collateral, and we are entitled to a revenue share on a portion of future activity on Avia. And the value of natively staked type continues to be demonstrated as our hype asset use service scaled across other clients. Stilhouette completed its migration to production during the quarter, and we saw monthly volumes step up from the hundreds of thousands toward over $40 million cumulative, consistent with the trajectory we outlined in May. This was driven by Silhouette's support for RFQ trading, which we expect to accelerate on Hyperliquid as more assets become tokenized and move on-chain. While positioning for this shift, we maintain our pipeline of prospective house clients and continue to be selective, prioritizing structures that return durable, volume-linked value to our supported markets. Yield enhancements saw over 50% growth this quarter, supported by Hype's realized volatility remaining elevated throughout the quarter. including the run to new all-time highs in June and subsequent consolidation. Our systematic approach focused on converting volatility into income. The program continued to operate within the disciplined risk framework we have described previously, position caps, strike selection anchored to technical structure, and no compromise of our long-term high position. As we operate those strategies internally, we continue to work in parallel with our efforts to expand yield infrastructure built on risk. are a partner in offering institutional-grade vault strategies known as Risk Premium. As a result of these efforts, our accumulated risk points continue to grow this quarter, placing us in the top 50 holders and preserving our claim on future protocol incentives. Risk Premium launched publicly in June, bringing institutional-grade covered call and cash-secured puts vaults fully on-chain, while also expanding their smart contract infrastructure to Ethereum mainnet, Demonstrating the ability of our partners to not only succeed in hyperliquid, but also distribute products cross-chain. In addition, RISC announced support for XAUT, Tether Gold, which is a digital token backed by physical gold, showing the first steps toward support of broader RWAs. We are optimistic for and await rulemaking for on-chain markets, crypto vaults, and blockchain settlement infrastructure. We expect additional clarity for on-chain vaults to be critical to driving more institutional adoption of strategies such as risk premium, and with further guidance, we're positioned to open up our vault strategies to other depositors and curators, expanding the availability of our on-chain infrastructure. Ecosystem rewards remain variable, but we maintain a positive outlook for the ecosystem tokens we will receive through the remainder of the year. As mentioned earlier, our ecosystem engagement efforts have expanded beyond token representation of the protocols we believe have long-term potential. Hyperion DeFi has now acquired equity positions to various protocols for the benefit of our shareholders. We continue to deliver on another core objective, to create long-term value for the hyperliquid ecosystem while simultaneously providing streamlined, comprehensive access to all the valuable components built there. Lastly, on our Hyperion Validator operations, In June, we announced our partnership with Blockdaemon to expand institutional hyperliquid staking. Blockdaemon is trusted by more than 400 institutions, and this partnership opens an additional channel to the institutional hype delegation demand we expect as hyperliquid's profile grows. Perhaps more importantly, we continue to explore opportunities that generate income by building on top of our existing infrastructure, one that is beginning to emerge is a way to leverage our validator infrastructure to provide data services for traders on Hyperliquid. We will share more as things are finalized. If it hasn't been clear by now, we will continue to build and pioneer on-chain, uniquely positioning our assets and designing partnerships unlike any other team in this space. Opportunities that didn't exist three months ago are real now. Imagine the possibilities of what may come as Hyperliquid continues to dominate on-chain finance. I'll now hand it over to our CFO, David Knox, to give highlights on our financial performance.