HyperTheta

🧠 Project NameHyperTheta

🔍 DescriptionHyperTheta is an on-chain options protocol that enables users to write and trade options using assets bridged into Hyperliquid through HyperUnit. By combining vault-based collateral management with an orderbook-driven trading interface, HyperTheta provides efficient and transparent options markets. At expiry, option holders exercise if in-the-money (ITM), while writers reclaim unused collateral, ensuring fair and deterministic settlement.

🛠️ How It Works

HyperTheta introduces a hybrid architecture that balances on-chain security with off-chain efficiency:

• Core Contract (Vault + Options Lifecycle)

  • Users deposit bridged collateral into vaults to mint new option series (CALLs or PUTs).

  • Vaults issue ERC-20–like oTokens that can be freely transferred or traded.

  • At expiry, the core contract references an oracle price feed (Hyperliquid) to determine ITM status.

  • Exercising: Holders of ITM options claim payouts from collateral.

  • Settlement: Writers reclaim any remaining collateral after ITM exercises.

• Settlement Contract (Orderbook + Matching)

  • Orders are signed off-chain (EIP-712 typed data) and stored on a backend server to form a full orderbook.

  • Takers submit selected orders on-chain via the fillOrders function.

  • The contract validates signatures, settles trades, and emits events (OrderFilled, OrderCancelled, OrderExecutionFailed).

  • These events are consumed by the backend to keep the orderbook state up to date with partial fills, cancellations, and full fills.

• Off-Chain Order Relay

  • Off-chain servers handle order relay and price discovery, reducing gas costs.

  • Only filled orders are executed on-chain, ensuring trustless settlement without sacrificing UX.

  • This model enables deep liquidity and a responsive trading interface.

• Oracle + Settlement Price

  • HyperTheta uses Hyperliquid’s signed oracle feeds to determine expiry settlement prices.

  • This ensures robust ITM/OTM resolution and prevents oracle manipulation.

• Frontend Integration

  • Users can interact directly with the Core Contract to manage vaults and exercise options.

  • Traders browse the off-chain orderbook UI, select orders, and act as takers via the Settlement Contract.

  • Real-time updates from contract events synchronize frontend state with on-chain settlement.

💡 Technical Highlights

• Dual-contract design: separation of collateralization (Core) and trading (Settlement).

• Orderbook-driven UX: efficient off-chain signed orders, on-chain settlement.

• Partial fills & cancellation logic: tracked via emitted events, enabling robust backend state.

• Bridged collateral support: powered by HyperUnit for cross-chain collateralization.

• Oracle-based expiry settlement: tamper-resistant Hyperliquid price feeds.

• Gas efficiency: off-chain order relay keeps costs low, while only settlement touches the chain.

💻 Demo📹

https://www.loom.com/share/507bcd1ed0624ef082af45cf08515045?sid=b94826dc-5941-4415-99aa-3a41410ba169

📂 Project Links

• Code:

  UI - https://github.com/hypetheta/HypeTheta-v0

  SC - https://github.com/bennettyong/theta-contracts 

  
  

  Docs / Explainer: 

  https://docs.google.com/document/d/1YJJFu7BfCDXlyp64hH5azBiLQv1q9zR3x5pPu_Y-NNs/edit?tab=t.0#heading=h.w62mnqgvnbfk

  
  

  https://docs.google.com/document/d/1LQeDLT0vb43FxJ1_asdbWlSzAgcPDSLnyuDkcm9hxnE/edit?tab=t.0

  
  

  https://www.mermaidchart.com/play?utm_source=mermaid_js&utm_medium=editor_selection&utm_campaign=playground#pako:eNqFVFFr2zAQ_iuHoeCyLDD2ZkihSVs6aEjosu4lL4d0SUUUyZPkpmHsv-8s2Y69LDQPieL77u67-z75dyaspKzIPP2qyAi6U7h1uF8b4A-KYB3cyr0y_Qc_nQrkAD2ss-ac__D8fXu9zvrAaXVscemYYNMOVqILSqgSTYAHZ00gI88jj8eS3Mw6uhC6f5mnJt2__AUrHeATrOyODP_OrNbIRFH_t_fCodCUijTn_JuR9A5LpwTBA5GMiSn16gomkwl8GafdgHDExT3wcIp_ONZsgTlERAGzGqLMtsGkeIx9vrlpeTcw-h4xuQ9O7WgE9F4qdxyB8jPUegShHspfpxpt7qDMHZXaHmFRBmVN3MGlhk_K7MCmNQV7WjXkKKUj70ewp4ASAzYNO4nq6ZL8BcyVidOlSs14KcjtWmkjMetVANHpweK42ns-AHMLKbNNGFB9qzUd16A0V55WOQLc28qE8330ybXM6iEP8XlvmtM8qTLqAqZOyS0NdpJgg8m6WJfQ9tmw_4NDyVs569T45-sY7qO0vAEUrySHzkmxApZGg0AtKt4Yk7uk5DN5q9-I4U-xed9oydNDvkvLK1e1yaPH84qPTh-Zb-u4fwU_UZtpVPui9c2j1bLdZ7znA8kjlm_b0VYfqytq8DJiG3nPZY0tClg5NH7Dr5NUGnLRu-PnTm0oJ4EbAS_aNHGuTOVZlFPdD-kfVHiVDg-n183FKVpzPlOonOlfiFxtYLGaA2uIm9AN2B8q-_MXP67q9Q

  
  

👥 Team

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