Hyperliquid

Aave

Kinetiq

Status

HyperLend

<ul>
 <li>Aave Labs extended its “friendly fork” recognition to HyperLend’s new deployment on Elysium, a layer-2 network built within the Hyperliquid ecosystem by Kinetiq</li>
 <li>The arrangement raises HyperLend’s revenue split with the Aave DAO to 50% for the Aave treasury and 50% directed toward HPL token buybacks, up from a prior 10% share</li>
 <li>HyperLend cites roughly $2 billion in originated loans, more than $530 million in total value locked, and $250 million in currently active loans across its deployments to date</li>
</ul>
A governance update from Aave Labs, published to Aave’s forum on November 11, 2026, formally extends the protocol’s “friendly fork” recognition program to cover HyperLend’s newest deployment on Elysium, a layer-2 blockchain built by Kinetiq within the broader Hyperliquid ecosystem. Aave’s friendly fork program gives selected projects that build lending protocols derived from Aave’s own open-source codebase a formal, revenue-sharing relationship with the Aave DAO rather than treating them as unaffiliated competitors.
The most consequential change in this particular update is financial: HyperLend’s revenue-sharing arrangement with the Aave DAO rises to a 50/50 split under the new terms, with half of relevant protocol revenue flowing to the Aave treasury and the other half directed toward buybacks of HyperLend’s own HPL token. That marks a substantial increase from the 10% share HyperLend previously shared with Aave, reflecting what appears to be a renegotiated, more generous arrangement as HyperLend’s own deployment has grown.
The update cites specific figures to justify HyperLend’s standing within the friendly fork program: the protocol has originated roughly $2 billion in loans cumulatively, holds more than $530 million in total value locked across its various deployments, and currently has $250 million in active, outstanding loans. Those figures position HyperLend as one of the more substantial projects operating under Aave’s fork-recognition framework, rather than a minor or experimental offshoot.
Elysium itself represents a growing category of specialized layer-2 networks built to serve a single ecosystem’s needs, in this case extending Hyperliquid’s trading-focused infrastructure with dedicated lending capabilities through HyperLend rather than requiring users to bridge assets elsewhere for borrowing and lending functionality. Aave’s willingness to extend formal recognition, and a more generous revenue split, to a fork operating on this kind of specialized chain suggests the protocol sees strategic value in maintaining a presence, even an indirect one through forks, across emerging ecosystem-specific infrastructure.
The arrangement illustrates how Aave’s fork-recognition program has evolved from a purely defensive measure against unauthorized forks into an active tool for extending the protocol’s influence and revenue reach into new blockchain ecosystems it does not directly deploy to itself. The <a href="https://governance.aave.com/t/arfc-extend-hyperlends-friendly-fork-recognition-to-elysium-aave-v3-7/26079" rel="noopener noreferrer nofollow">full update is published on Aave’s governance forum</a>.
This post first appeared in <a rel="noopener noreferrer nofollow" href="https://cryip.co/aave-extends-friendly-fork-status-to-hyperlend-on-a-new-hyperliquid-linked-chain/">Aave Extends “Friendly Fork” Status to HyperLend on a New Hyperliquid-Linked Chain</a>

Aave Extends “Friendly Fork” Status to HyperLend on a New Hyperliquid-Linked Chain

CRYIP

Other articles published on Nov 13, 2026

Join our free newsletter for daily crypto updates!