pump.fun We are all very familiar with it, one click to send meme coins. Hyperliquid, we are also very familiar with, one click to open leverage.

So what if, at the same time as sending meme coins with one click, you also open leverage with one click? This is a new experiment on HyperEVM — alt.fun, combining pump.fun + Hyperliquid.

Mechanism of alt.fun

First, like pump.fun, everyone can launch tokens. But when creating a token, besides the familiar basic info like token name, ticker, logo, description, the first step is to select an asset, choose a direction (long/short), and set a leverage multiple.

From the chart below, we can see that currently supported mainstream crypto assets include BTC, ETH, HYPE, SOL, DOGE, ZEC, and traditional large assets like silver, Nvidia, and the S&P 500 index, with leverage options of 2/3/5 times.

On pump.fun, during the bonding curve phase, people deposit SOL to get meme coins. But on alt.fun, people deposit USDC to receive leveraged tokens.

The so-called leveraged tokens are tokenized positions of contracts on Hyperliquid. So the underlying trading logic on alt.fun is essentially:

Buy: USDC -> leveraged token -> meme coin

Sell: meme coin -> leveraged token -> USDC

Rather than just trading meme coins, it’s more like a fundraising leveraged position wrapped in meme coins. Whether before or after the token’s graduation, the asset reserves associated with the meme coin are always the underlying leveraged tokens. This means that even if a meme coin itself isn’t traded, the appreciation/depreciation of the underlying leveraged contract position will cause the meme coin’s price to rise/fall.

Because of this mechanism, alt.fun’s token graduation threshold has two conditions. One is completing the bonding curve, and the other is when the value of the contract position corresponding to the token reaches $9,000. The former can be simply understood as raising $9,000 to leverage together; the latter means no fundraising needed, as the order itself is already worth that much.

After graduation, liquidity migrates to the AMM pool, but the assets paired with the meme coin are still leveraged tokens, so buying at this stage actually amplifies the leveraged position. This spiral begins here: if the value of the underlying leveraged position rises, it triggers FOMO, attracting more funds, and amplifying the meme coin’s rise. Conversely, if the underlying leveraged position’s value shrinks, it can easily cause a cascade.

Does this mechanism have a “leader”?

New platforms often trigger FOMO. From the perspective of meme coin launchpads, the highest market cap and sentiment are undoubtedly with $ALT.

But since alt.fun essentially wraps contract positions in a meme shell, it’s important to see that $ALT is actually a meme version of a 5x long $HYPE leveraged position. If $HYPE rises 10%, the underlying leveraged token will rise 50%. Under emotional catalysis, the market cap of $ALT itself will also expand.

But what if $HYPE falls? Or even when $HYPE is in a sideways trend, for example, dropping 10% then rising 10%, the price of $HYPE remains unchanged. During this process, the system will perform dynamic rebalancing in the background to avoid liquidation—meaning, in volatile markets, it will forcibly reduce leverage during dips. This implies that if the underlying asset drops 10% and then recovers, your token’s net value may not only fail to return to the original but could also incur losses, especially with higher leverage multiples.

In extremely volatile conditions, theoretically, dynamic rebalancing might fail to respond in time, leading to liquidation (the leveraged token’s value dropping to zero).

In summary, while this platform can still capture leader tokens through sentiment, it requires strong emotion; otherwise, sideways movement of the underlying leveraged assets can easily lead to losses.

What’s new about this platform?

Many veteran players might think this is just adding a meme layer to existing leveraged tokens. Current contract traders either open positions themselves or follow others, which divides activity. So what’s truly new about this platform?

@frozenraspberry offers an interesting perspective—that this setup only works on HyperEVM, not on ETH/Solana:

Additionally, @nyenchenn pointed out that meme-ifying leveraged positions itself is quite fun:

Conclusion

Wrapping leverage in a meme emotion amplifier, alt.fun’s amplification effect is its attractive innovation, but it also increases the risk of the assets themselves. Investors should exercise greater caution.

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