Pear Protocol integrates with Hyperliquid secures $4.1M led by Castle Island trading volume approaches $1B

Pear Protocol has launched a native integration with Hyperliquid, a high-speed decentralized exchange, while securing a $4.1 million strategic funding round led by Castle Island Ventures. The round, which includes participation from Compound VC, Florin Digital, and Sigil Fund, marks a pivotal moment as the platform approaches $1 billion in trading volume. This integration enables traders to execute pair trades directly on Hyperliquid’s perpetual orderbook, combining liquidity depth with Pear’s capital-efficient tools for cross-token trading [1]. The funding will accelerate institutional-grade product development, including HyperEVM-based vaults and APIs, and expand Pear’s spot token liquidity on Hyperliquid’s orderbook [1].

The integration introduces features such as one-click trade execution, TWAP (Time-Weighted Average Price) ratio optimization, and ratio-based stop-loss mechanisms, enhancing risk management for users. Pear’s platform, which supports both retail and institutional traders, now allows direct ratio charting and custom pair weighting, streamlining advanced strategies like HYPE/SOL or beta-weighted ETH/BTC trades [1]. Founder Huf emphasized the significance of the partnership, stating that Hyperliquid’s liquidity and Pear’s execution capabilities together position the protocol as a “turning point” in DeFi-native infrastructure [1].

Castle Island Ventures’ investment underscores growing institutional confidence in protocols addressing liquidity and scalability challenges in DeFi. Wyatt Khosrowshahi, an investor at the firm, highlighted Pear’s role in connecting deep crypto-native liquidity with intuitive user experience, education, and novel execution models [1]. The capital allocation reflects a strategic focus on expanding Hyperliquid’s integration, enhancing developer tools, and reinforcing institutional infrastructure.

From an analytical perspective, Pear’s timing aligns with rising demand for interoperable DeFi platforms. Hyperliquid’s layer-2 infrastructure, which reduces latency and costs, could attract traders seeking efficient execution in volatile markets. However, the protocol competes with established platforms like Uniswap and SushiSwap, which offer broader ecosystem integrations. Pear’s differentiation will depend on maintaining speed and cost advantages while innovating in governance and yield mechanisms. The involvement of Castle Island Ventures also signals a trend of traditional finance investors backing projects bridging DeFi and institutional trading [1].

The strategic alignment extends beyond capital: Castle Island and other participants bring ecosystem reach and product insight, aiming to position Pear for long-term sustainability. This includes optional protocol buybacks and new revenue streams, reflecting a forward-looking approach to market dynamics. For users, the integration’s benefits—such as claimable $HYPE tokens through Hyperliquid’s Season 3 points—add incentive layers, though real-world adoption will ultimately test the protocol’s resilience to smart contract risks and liquidity consistency across networks [1].

Sources:

[1] [Pear Protocol Goes Live with Hyperliquid Integration and Announces $4.1M Strategic Round Led by Castle Island Ventures](https://coinmarketcap.com/community/articles/6887767a19d0ac2a2d639d4a/)

[2] [Pear Protocol Goes Live with Hyperliquid Integration and Announces $4.1M Strategic Round Led by Castle Island](https://blocktelegraph.io/mill-city-ventures-iii-ltd-announces-450000000-private-placement-to-initiate-sui-treasury-strategy/)

[3] [Pear Protocol Goes Live with Hyperliquid Integration and Announces $4.1M Strategic Round Led by Castle Island Ventures](https://blockchainreporter.net/maplestory-universe-expands-infinite-ip-playground-vision-with-developer-tools-and-legacy-ip-expansion/)