Hyperwave, a yield vault protocol within the Hyperliquid ecosystem developed by Swell Labs, is ceasing operations on December 16, 2026. The project team announced the closure on November 11, 2026, citing high operating costs and regulatory uncertainty as the primary drivers for the decision.
Following the announcement, all vaults transitioned to a withdrawal-only mode. The protocol will continue to generate yield while gradually unwinding positions. Users who do not withdraw their funds before the deadline will have the remaining net asset value returned directly to their wallets.
The protocol plans to use all revenue generated until the shutdown to buy back and burn HWAVE tokens. At the time of the announcement, the total value locked in the protocol had declined by approximately 98%, falling to a range between $917,000 and $923,000.
The development team has issued a warning regarding potential phishing risks during the transition period. Users are advised to interact exclusively through official channels and to remain cautious of any external links or messages promising expedited refunds.
