Yutu economics

Yutu is a Hyperliquid-aligned L2 for swaps and perpetual markets. Its swap pools use Hyperliquid's live order-book depth to price trades, while LPs supply the assets used to fill them.

Yutu's economics are designed to be accretive to Hyperliquid. Every transaction uses HYPE for gas, and 31% of Yutu's gross protocol revenue is sent to Hyperliquid's Assistance Fund. As activity on Yutu grows, HYPE usage and the revenue returned to Hyperliquid grow with it.

This means:

• Traders receive prices based on executable Hyperliquid depth.
• LPs earn the spread for supplying inventory.
• Builders set and keep their own application fees.
• Hyperliquid receives a fixed share of Yutu's protocol revenue.
• The revenue split is enforced by a contract with no admin key.

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Why Yutu matters to Hyperliquid

More activity uses HYPE

HYPE is Yutu's gas token. Users need it to trade, provide liquidity, withdraw, and interact with applications on the network.

Gas is set at 0.1 gwei, matching HyperEVM's base fee. A swap costs roughly $0.0016, so gas remains inexpensive while every transaction still contributes to HYPE usage.

Revenue returns to the ecosystem

Yutu sends 31% of gross protocol revenue to Hyperliquid's Assistance Fund. The remaining 69% goes to the Yutu treasury.

The 31% matches Hyperliquid's genesis distribution to users: 310 million of the one billion HYPE supply, fully unlocked, with no venture-capital allocation.

ProtocolFeeSink enforces the split. Both destinations are immutable, the contract has no admin key or upgrade path, and distribution is permissionless.

Builders keep their fees

Applications can add a builder fee to a quote. The execution contract charges it on top of the pool spread and sends the full amount to the builder. Users see the fee before signing.

Builder fees give wallets, trading interfaces, and other applications a direct way to earn from the activity they bring to Yutu.

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How value moves through Yutu

1. A trader requests a quote for a specific size.
2. The pool reads Hyperliquid's order book and calculates the executable price for that trade.
3. The trade fills against inventory supplied by LPs.
4. LPs receive the spread, less Yutu's fixed 1bp protocol cut.
5. Any third-party builder fee goes directly to the builder.
6. ProtocolFeeSink sends 31% of protocol revenue to Hyperliquid's Assistance Fund and 69% to the Yutu treasury.

trading fee ──┬──► LPs
              └──► protocol cut ──┬──► 31% ──► Hyperliquid Assistance Fund
                                  └──► 69% ──► Yutu treasury

Gas and fees from Yutu-controlled builder codes enter the same 31/69 split. Third-party builder fees never enter Yutu's revenue.

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Trading fees

The pool spread starts at 6bp and rises to 30bp when Hyperliquid's book is stale or volatile. Yutu receives 1bp of executed book value. LPs receive the rest.

Effective fee	LPs	Yutu	Yutu share
6bp, calm	5bp	1bp	16.7%
15bp	14bp	1bp	6.7%
30bp, stale or volatile	29bp	1bp	3.3%

Yutu's cut stays fixed as the spread changes. Every basis point above the 1bp cut goes to LPs, where the market risk sits.

Protocol revenue comes from three sources:

Source	Amount	Treatment
Trading	1bp of executed book value	included in the 31/69 split
Gas	0.1 gwei, paid in HYPE	included in the 31/69 split
Yutu-controlled builder codes	fee shown in the quote	included in the 31/69 split

The split is calculated from gross revenue. Operating costs do not reduce the amount sent to the Assistance Fund.

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The 31% split

A $79.40 tBTC fill accrued 7,939 units of protocol revenue, equal to one basis point of the executed book value.

Destination	Units	Share
Hyperliquid Assistance Fund	2,462	31.01%
Yutu treasury	5,477	68.99%

Integer division favours Hyperliquid. The contract calculates the treasury amount first and sends the remainder to the Assistance Fund. Any address can call the distribution function.

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Rules enforced in code

• Gas is paid in HYPE.
• protocolBps must remain lower than spreadBps. The contract checks the relationship whenever either value changes.
• withdrawShares pays a proportional slice of raw inventory without reading an oracle. LPs can withdraw when the price feed is unavailable or trading is paused.
• ProtocolFeeSink cannot redirect the Assistance Fund or treasury destination.
• Distribution from ProtocolFeeSink is permissionless.
• Third-party builder fees are paid in full to the builder.
• Fees from Yutu-controlled builder codes count as protocol revenue.

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Verify the economics

Record	What it shows
Gross protocol revenue	amount subject to the 31/69 split
Assistance Fund transfers	amount sent to Hyperliquid
Fee-sink balance and distributions	timing and result of each distribution
Builder-fee transfers	amount paid to each application
LP fee accrual	spread retained by liquidity providers

Each amount can be derived from public data on Yutu and Hyperliquid.