The decentralized finance (DeFi) landscape stands as a major contributor to value generation and revenue generation for cryptocurrency projects, yet its intricate nature often ensnares users within a maze of blockchains, bridges, wallets, and tokens.
However, a recent technical enhancement is simplifying this process for both developers and users, allowing for the direct linking of tokens on the HyperCore and HyperEVM platforms.
HyperCore functions as the native platform for spot assets—essentially tokens that can be traded directly—while HyperEVM serves as an Ethereum Virtual Machine (EVM) network facilitating the execution of smart contracts on Ethereum.
Tokens on HyperCore, known as “Core spots,” can now be associated with their equivalents on HyperEVM, referred to as “EVM spots.” Once these tokens are linked, users can easily transfer them using simple actions, such as a “spotSend” on HyperCore or a typical ERC-20 transfer on HyperEVM.
The linking of a core spot token to an EVM spot token isn’t an automatic process. It kicks off with the token’s “spot deployer,” or the organization responsible for it, ensuring that the token’s supply aligns on both sides of the transaction.
Following this, they submit a “spot deploy action” to HyperCore, proposing an ERC-20 contract on HyperEVM to pair with their token.
Verification then takes place. If the EVM contract was deployed by an individual, they confirm it through a unique transaction nonce (a specific number assigned to each transfer on a blockchain).
If the deployment was handled by another contract—such as a multisig contract for added safety—the first storage slot of that contract must point to the HyperCore deployer’s address. Finally, a “finalize” action secures the link, ensuring mutual agreement on both sides.
This linking capability enables users to access Ethereum’s DeFi environment—such as lending, borrowing, and trading—without completely exiting the Hyperliquid ecosystem.
Why Is This Significant?
Why is this important? It’s because transferring tokens between ecosystems can be far from straightforward.
Take Ethereum for instance, where billions of dollars are locked within protocols like Aave or Uniswap. If someone wishes to send a token from another network, such as Solana, they require a bridge—a third-party service that secures your tokens on one end and issues a wrapped version on the other. This method comes with inherent security risks, as bridges have been particularly vulnerable to exploitation in the blockchain realm recently.
Such challenges also persist within the Ethereum ecosystem itself, where transferring assets between the mainnet and a Layer 2 blockchain (like Optimism or Arbitrum) is not always a smooth experience.
The approach taken here diverges from merely adding a bridge. HyperCore is specifically designed for rapid spot trading, while HyperEVM is an EVM-compatible layer leveraging Ethereum’s DeFi toolkit.
By enabling direct transfers between them—without a third-party intermediary—developers can craft products that simplify the asset movement process, which can be daunting for newcomers, even if experienced users find it manageable.
Tokens such as HYPE, which serves as HyperEVM’s gas token, do not require a separate ERC20 contract to function on both platforms. If you send HYPE from HyperCore, it arrives as native gas on HyperEVM. Sending it back to HyperCore through a designated system address (0x222) results in instant credit based on an event log.
While there are still hurdles to overcome, the project has indicated in its technical documentation that risks associated with unverified contracts or supply discrepancies persist as of this week.