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Documentation Index

Fetch the complete documentation index at: https://docs.hyperlane.xyz/llms.txt

Use this file to discover all available pages before exploring further.

The goal of this guide is to illustrate how you can use Hyperlane Warp Routes (HWR) to create yield-generating bridges, ensuring idle bridged assets are productive by compounding yield over time.
For an introduction, see the Yield Routes overview.
If you are a vault provider, you only need to supply your ERC-4626 vault address on the origin chain. Hyperlane (or your integration partner) handles deploying and operating the route. Share this guide with the party doing the deployment and provide them with your vault address.

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Concepts

  • ERC-4626 Vault: The Ethereum standard for tokenized yield-bearing vaults. Upon deposit, share tokens are minted representing ownership of the underlying asset.
  • Yield Route (EvmHypOwnerCollateral & EvmHypSynthetic): The Hyperlane representation of a yield-bearing EVM collateral token. The yield route’s vault’s deposited asset address is used as the HWR’s collateral token.
    • Two variants exist. In owner-yield routes (EvmHypOwnerCollateral & EvmHypSynthetic), vault yields go to the route owner. In user-yield routes (EvmHypRebaseCollateral & EvmHypSyntheticRebase), vault yields are passed through to holders by automatically increasing each holder’s balance of the synthetic token. The underlying mechanics are otherwise the same.

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Pre-Requisites

To complete the following walkthrough, you should have the following available:
  1. An origin and destination network of choice, between which you’d like to deploy the yield route.
  2. An installed instance of the Hyperlane CLI and a wallet private key set as the HYP_KEY env var funded on your origin and destination networks.
  3. The address of an ERC-4626 vault on the origin network from which you want yield to be generated. This vault’s underlying asset will be set as the collateral for the HWR (e.g. if vault is USDC funded, the HWR will also support USDC transfer).
    Your vault must implement the ERC-4626 standard without modifications to standard behavior. Vaults that charge a fee on deposit/withdrawal, use a rebasing underlying asset, or override standard share math may produce incorrect exchange rates or accounting errors. If unsure, verify that previewDeposit, convertToAssets, and convertToShares return values consistent with the standard before integrating.

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Example Bridging Flow

The following walks through a yield route deployed between Ethereum (the origin chain, holding the ERC-4626 vault) and yourchain (the destination chain, where the synthetic is minted). Bridge USDC: Ethereum → yourchain In this example, Alice wants to bridge USDC between Ethereum and yourchain. The yield route will transfer her USDC to a yield-bearing ERC-4626 vault, and then mint her synthetic USDC on yourchain. Notice that the yield route owner can claim yields generated from that vault. Bridge USDC: yourchain → Ethereum When Alice wants to bridge back to Ethereum, the reverse happens. The yield route will burn her synthetic USDC, withdraw the USDC from the vault on Ethereum, and return her USDC.

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Yield Route Deployment Steps

Using the Hyperlane CLI, deploy a USDC EvmHypOwnerCollateral and EvmHypSynthetic tokens on Ethereum and yourchain, respectively: Step 1. Run hyperlane warp init to generate a HWR config:
  1. Select yourchain and Ethereum using space, and hit enter.
  2. For Ethereum, select collateralVault, accept the mailbox, and enter the USDC vault address on Ethereum.
    • Alternatively, you can select collateralVaultRebase which is a yield route variant that distributes yields to users by increasing their holding amount.
  3. For yourchain, select synthetic and accept the mailbox.
    • If you selected collateralVaultRebase, you must pair it with a syntheticRebase
Step 2. Run hyperlane warp deploy to deploy the HWR.

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Claiming Yield

Depending on the yield route variant:
  • collateralVault (owner yield): Call HypERC4626OwnerCollateral.sweep() on the origin chain collateral contract. This sends all accrued yield to the contract owner address set at deployment. There is no fixed cadence — call it as often as desired.
  • collateralVaultRebase (user yield): Call HypERC4626Collateral.rebase(destinationDomain) on the origin chain collateral contract, where destinationDomain is the Hyperlane domain ID of the chain hosting the syntheticRebase contract. This sends an updated exchange rate to the synthetic contract on the destination chain, increasing all user balances proportionally.
🎉 Congrats! You have now created a new yield route with your vault. Bridged user assets can now earn passive yield while present in the origin HWR.
Please note that this collateralization strategy takes on certain ISM trust assumptions, and there is inherent risk that the underlying ERC-4626 vault becomes under-collateralized.

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More Resources

To learn more about yield routes and the underlying standards:

Bridge a Token

In-depth walkthrough of the underlying warp route deployment steps.

Yield Routes Overview

What yield routes are, when to use them, and how they work.

ERC-4626 Vault Standard

The tokenized vault standard yield routes are built on.