Hylo: Solana’s New Stablecoin Primitive

Carlos Gonzalez CampoDec 2, 2025 ⋅ 14 min read

Introduction

Hylo is a decentralized stablecoin protocol native to Solana, consisting of two symbiotic tokens:

hyUSD: stablecoin backed by SOL LSTs.
xSOL: leveraged SOL token with no ongoing fees or liquidation risk. xSOL's leverage is powered by the volatility absorption mechanism of LST collateral backing hyUSD.

Hylo won second place in the payments track of the November 2024 Solana Radar hackathon. In August 2025, Hylo ended its private beta and opened to the public, announcing a $1.5M seed round led by Robot Ventures, with participation from Colosseum and Solana Ventures, as well as angel investors from Drift, Loopscale, Exponent, RateX, and Kamino.

Hylo has grown to almost $100M in TVL with a very lean team (3 cofounders + 1 founding engineer). Regarding additional fundraising, the team mentioned they have some inbound interest from notable VCs, but are not yet certain they want to pursue this path.

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Carlos Gonzalez Campo

57 Reports 0xcarlosg

Carlos leads coverage on Solana and spends his time on DeFi applications. Previously held a research role at 21Shares.

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Outline

Introduction
Protocol Overview: hyUSD and xSOL
Stability Pool: sHYUSD
Hylo’s Growth
LSTs: hyloSOL and hyloSOL+
Protocol Revenue
Upcoming Catalysts
Points Program (XP System)
Relative Valuation
Loopscale x Hylo
RateX and Exponent PTs
Kamino Listing
Risks
Looking Forward

Author

Carlos Gonzalez Campo

Carlos leads coverage on Solana and spends his time on DeFi applications. Previously held a research role at 21Shares.

57 Reports 0xcarlosg

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