# Use Cases

USDhl unlocks the following use cases on Hyperliquid L1.

#### I. Passive Savings

| Where to deploy                   | How it works                                                       | Why USDhl                                     |
| --------------------------------- | ------------------------------------------------------------------ | --------------------------------------------- |
| Felix Vanilla Markets (lending)   | Supply USDhl → earn borrower interest + embedded Treasury yield    | Beats zero‑yield USDC/USDT without extra risk |
| HyperEVM AMMs (Curve / Hyperswap) | Add USDhl liquidity → earn swap fees, HYPE rewards, Treasury yield | Beats zero‑yield USDC/USDT without extra risk |

#### II. Perps Margin

* HIP‑3 enables USDhl to be recognized as first‑class collateral for new perp markets.
* Traders post USDhl margin and continue to earn stable yield while positions are open - this cuts the cost of active perp positions.

> *Example:* A 10 × long ETH perp financed with USDhl costs nothing in opportunity cost versus USDC,.

#### III. Payments & Cross-Border Transfers

HyperCore’s zero‑fee `transfer()` function turns Hyperliquid L1 into a cheap settlement rail for payments. Overtime, as more capital comes on Hyperliquid, we expect the L1 to be a utility for money movement between parties, with USDhl one of the core assets used for this use case.