# Flywheel Overview

### 🔁 Overview

Hyper‑Strategies is fueled by a performance flywheel: user capital drives vault trading volume, which generates protocol incentives, leading to yield or token upside, which in turn reinforces user growth and further deposits.

### Flywheel Components & Metrics

#### Volume → Protocol Rewards

As users place trades via our vaults, a significant portion of the collected trading fees on Hyperliquid are recycled into HYPE buybacks or redistributed via the protocol's Assistance Fund. This creates sustained buy-side pressure for the HYPE token.

#### Reward Distribution

Builders (like Hyper-Strategies) earn referral fees on volume, and vault users receive points that can be converted into our native PST token or redistributed as liquidity. This adds a compounding layer to vault returns.

### 🔍 Flow Diagram

<details>

<summary>View Flywheel Flow</summary>

```plaintext
User Deposit → Strategy Execution → High Trade Volume  
     ↓  
Protocol Rewards ($HYPE / builder fees)  
     ↓  
Distribution or Reinvestment to Users  
     ↓  
Higher Vault Returns → Increased Deposits   
     ↓  
Staking & Governance Benefits → Tiered Fee Optimization  
     ↓  
Flywheel Self-Amplifies

📊 Sample Economics
Action	Metric / Value	Benefit
Vault trading volume	$1M generates significant buybacks	HYPE token appreciation
Builder automation	0.01% fee per trade	Revenue to Hyper‑Strategies
PST bonus/compounding	Points system	Added returns for users
Lock-up tier adoption	15% vs 20% performance fee	Encourages long-term deposits
```

</details>