Paragon Names HYPE² as Its First Product in Power Perps Design

Paragon announced Power Perps on Nov. 5, naming HYPE² as its first product. The index tracks HYPE’s price squared, making its value rise by larger dollar amounts as HYPE climbs and fall by smaller amounts as HYPE declines.

If HYPE doubles, the index reaches four times its starting value. Each $1 increase in HYPE adds more to the index than the preceding $1 increase; on the way down, each $1 decline removes less than the previous $1 decline.

The contracts have no strike price or expiration date. Paragon described the design as bringing an options-like payoff into perpetual contracts, with the index following a power of the underlying asset’s price.

The design builds on the Power Perpetuals concept. Opyn’s Squeeth on Uniswap v3 offered an earlier example of perpetual convexity based on Ether (ETH) squared.

Paragon identified Hyperliquid’s spot and linear perpetual markets as places where market makers can hedge Power Perps exposure. It separately cited the venue’s order book and portfolio margin as platform features.

Paragon said it aims to establish convexity markets alongside Hyperliquid’s major markets. It has previously launched perpetual indexes tied to Bitcoin dominance, TOTAL2 and OTHERS on the venue.