Thread by @Henrik_on_HL

HYPERLIQUID POINTS GUIDE [UPDATED]

Only 8 weeks left until the end of Season 2! You want to maximize your points on Hyperliquid? In this guide, I'll try to break down last week's winning strategies and show you how to potentially boost your points.

First of all, it is important to mention that the points algorithm is constantly changing and it is difficult to make a prediction. However, some power users manage to get many points week after week. There are a few “rules” that you should stick to.

s/o to @NMTD8 - og chad

The most important rule is never to do washtrading. This means that you should avoid buying and selling in a very short period of time. Even if volume has an influence on your points, this should never be achieved through washtrading. I have had to experience this first hand...

To find out whether generating volume through washtrading earns points, I did this on this wallet for one week (marked in red). Although I haven't done any washtrading since then, my wallet is still nerfed.

➡️HL nerfs wallets LONG TERM due to washtrading!

What else brought relatively few points last week?

It can be seen that Perps volume does not seem to have brought in as many points as expected. I also think that wallets 4 & 5 might be nerfed (despite the high spot holdings) due to washtrading in earlier weeks.

What worked very well last week?

The LONG TERM HOLDING of spot coins has been extremely rewarded, especially holding while at loss. In particular, spot coins from the Strict List seem to have earned lots of points. Spot volume seems to have a positive impact on points, too.

It is important to understand that your TIME WEIGHTED AVERAGE BALANCE plays a crucial role here. If you buy PURR 2min before the snapshot and sell it immediately afterwards, it will not earn you as many points as if you had held PURR all week.

➡️ LONG TERM HOLDING is crucial

What about volume?

Here it is important to note that the ratio of your "trading volume / amount held" is particularly important. That means that your portfolio value matters when doing volume. The higher the portfolio value, the more points you earn through generating volume.

Hold your STRICT LIST TOKENS no matter what. Take calculated risks on low-cap tokens you believe have upcoming catalysts. I'm speculating on smaller coins that could end up on the strict list (e.g. CZ, PANDA...). I'll try to sell only when I have a positive PNL (for volume).

Also @fsmasky & my theory is that there is a snapshot each day. So your weekly points are made up of 7 ss. This rewards constant traders and penalizes farmers who enter only 1 day of the week and make a lot of volume. However, I do not have enough evidence to confirm this theory.

If you want a better overview of the spot coins on Hyperliquid, I can recommend @0xPasteke's list. He updates it regularly and it is helpful to protect yourself from shady coins.

TD:LR

+ Hold spot tokens LONG TERM
+ Holding while at loss
+ NEVER washtrade (change wallet if you have done it in the past)
+ Spot tokens > Perps (do both if you can)
+ Organic spot volume
+ Trade on different days
+ Make spot markets more liquid (MM)
+ Positive net buys

Please note that the points algorithm has not been made public yet. Everything in this thread is based on observations and assumptions. Also, I can't verify discord/TG/X messages for accuracy and truth.

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