- 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
- 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
- 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
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 full update is published on Aave’s governance forum.
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