How does Liminal works?
1. Deposit Users deposit USDC into Liminal. No lockups or configuration steps are required.
Hyperliquid's infrastructure allows Liminal to operate with the speed, transparency, and precision required to deliver safe and scalable yield.
Liminal is a protocol that automates delta-neutral strategies to deliver real yield on USDC deposits. It removes the complexity of execution and provides users with seamless access to institutional-grade strategies through a simple interface.
Core Mechanism
At its core, Liminal runs a delta-neutral strategy to capture yield from perpetual funding rates on Hyperliquid.
Step-by-step process
1. Deposit Users deposit USDC into Liminal. There are no lockups or configuration steps required.
2. Position Execution Liminal allocates the deposited funds to open two offsetting positions:
A long position in the spot market (HYPE for example)
A short position of equivalent size in the perpetual futures market
3. Delta-Neutral Exposure These positions neutralize directional market risk. Whether the asset price moves up or down, the total position remains stable in value.
4. Yield Capture Liminal earns funding rate payments from the perpetual market, typically paid by long traders. These payments are distributed to users as yield.
5. Rebalancing and Optimization Positions are constantly monitored and adjusted to maintain neutrality and maximize funding rate capture.
6. Auto-Compounding Yield is automatically reinvested to boost long-term returns without user action.
Infrastructure
Liminal is built natively on Hyperliquid, leveraging its high-performance infrastructure:
Deep liquidity across both spot and perp markets
Low-latency, real-time execution through HyperCore
Native support for delta-neutral design at the protocol level
Hyperliquid’s architecture enables Liminal to deliver scalable, safe, and transparent yield strategies.
Execution Engine
Liminal’s Liquidity Engine handles live trade execution and strategy management. Its responsibilities include:
Monitoring and maintaining safe collateral levels
Executing and rebalancing positions efficiently
Monitoring spreads between spot and perps markets to avoid any imbalance when executing
Dynamically adjusting leverage to minimize liquidation risk
Automatically compounding yield as it accrues
This system is optimized to reduce execution risk, eliminate manual oversight, and ensure strategy consistency across market conditions.
Custody Model
Liminal uses different custody models depending on the user profile.
For regular users, the strategy operates through externally owned accounts (EOAs) managed and secured by Liminal. All signature operations are executed within an off-internet enclave, and private keys are encrypted at rest using AES-256 to ensure maximum security.
For institutional users, Liminal leverages Hyperliquid’s Agent system. This allows trade execution directly on the institution’s own account or sub-account. Liminal can never access or withdraw funds. Institutions retain full custody at all times while still benefiting from automated strategy execution.
This setup ensures a secure and flexible experience across user types.
Modes of Use
Liminal provides two user interfaces, depending on preference:
Standard Mode A clean, simplified dashboard showing deposits, performance, and yield
Pro Mode Advanced tools for experienced users, including real-time metrics, historical charts, and deeper analytics
Both interfaces provide:
Real-time visibility into portfolio performance
Access to withdraw capital at any time
Custody structure adapted to user type, with either full self-custody or secure EOA management
Summary
Liminal turns a complex delta-neutral strategy into a simple user experience:
Deposit USDC
Earn sustainable, market-neutral yield
Withdraw anytime, with full transparency
Depending on your user profile, custody is either managed securely on your behalf or remains entirely under your control. Behind the scenes, Liminal handles execution, monitoring, and optimization, so you don’t have to.
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