[TEMP CHECK] Extend HyperLend's Friendly Fork Recognition to Elysium (Aave v3.7)

Governance
1

Author: HyperLend Team
Date: 2026-11-06

Summary

This proposal seeks Aave DAO recognition of a new HyperLend deployment as a friendly fork of Aave, on Elysium, Kinetiq’s Layer 2 for the Hyperliquid ecosystem.

The deployment will use the Aave v3.7 codebase and will consist only of Aave pools. HyperLend will share 50% of all revenue generated by the Elysium deployment with the Aave DAO. The remaining 50% will be used to buy back HyperLend’s token, HPL.

Block Analitica will continue to serve as risk manager.

Motivation

HyperLend’s track record

In early 2025, the Aave DAO recognized HyperLend as a friendly fork on HyperEVM (TEMP CHECK, ARFC). Since then, HyperLend has:

  • Originated approximately $2B in loans (Block Analitica dashboard)

  • Reached a peak total market size of over $900M (Block Analitica dashboard), and currently holds over $530M in TVL with $250M in active loans (DefiLlama)

  • Operated securely and at scale for more than a year

  • Worked continuously with Block Analitica on risk management

We believe this record shows HyperLend can run an Aave-based money market responsibly. We want to bring that experience to a second network.

Why Elysium

Elysium is a high-throughput Arbitrum Orbit L2 built by Kinetiq. It settles to HyperEVM, runs co-located with HyperCore, and uses HYPE as gas. It is designed for higher-frequency onchain activity than HyperEVM can support.

As liquidity and trading activity grow on Elysium, demand for a reliable money market will follow. HyperLend intends to capture that flow, and this proposal ensures the Aave DAO shares directly in it.

Benefits to the Aave DAO

  • 50% of all revenue from the Elysium deployment, with no exclusions, compared with 10% under our original HyperEVM terms

  • Expansion of the Aave codebase into the Hyperliquid L2 ecosystem with no DAO capital or operational burden

  • An operator with an established track record, an existing relationship with the DAO, and a continuing risk partner

Specification

We propose that HyperLend:

  • Deploy Aave v3.7 on Elysium as a friendly fork operated by HyperLend

  • Offer only Aave pools on Elysium (no isolated pools, P2P, or other products)

  • Share 50% of all revenue generated by the Elysium deployment with the Aave DAO, distributed either monthly or through a RevenueSplitter contract

  • Use the remaining 50% of Elysium revenue to buy back HPL

  • Retain Block Analitica as risk manager for the Elysium deployment

  • Deploy as soon as this proposal passes governance

No token allocation is included in this proposal. The revenue share is the DAO’s compensation.

In return, the Aave DAO should:

  • Grant HyperLend a license to use the Aave v3.7 codebase on Elysium

  • Notify HyperLend of potential security issues in the Aave codebase so they can be mitigated before public disclosure

Next Steps

  1. Gather feedback from the Aave community

  2. Escalate this proposal to a Temp Check Snapshot

  3. If the Temp Check passes, publish an ARFC forum post and escalate to an ARFC Snapshot

  4. If the ARFC passes, deploy on Elysium

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