Hylo LSTs

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Hylo LSTs is the LST-backed reserve for Hylo’s Solana-native dual-token system, not a standalone liquid-staking token. The reserve backs hyUSD, a stablecoin, and xSOL, a dynamically leveraged SOL claim that absorbs reserve volatility. It held about $15.0M on 2026-08-15, far below the $100M materiality floor. Rejected on size without treating the survey label as evidence that hyUSD is cash-like or xSOL is ordinary staked SOL.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days

The research file

Mechanism applicability

Hylo documents one LST collateral pool supporting two liabilities: $1-target hyUSD and xSOL, whose residual net asset value creates dynamic leveraged SOL exposure. xSOL absorbs SOL price movements to protect hyUSD. This corrects the old standalone-LST description while leaving the reserve below the materiality threshold.

Current observation and perimeter

The DefiLlama API read on 2026-08-15 reported approximately $15.0M on Solana and labelled the adapter Liquid Staking. Hylo’s primary documentation instead defines the decision perimeter as a stablecoin and leveraged token backed by Solana LSTs; that mechanism controls reopened underwriting.

Control and exit applicability

Hylo uses SOL price inputs and stake-pool value calculations to price reserve LSTs. Mint and redemption fees change with collateral health; below stated thresholds, stability-pool hyUSD can be converted into xSOL and xSOL redemption becomes more expensive. Exit depends on reserve backing, valuation programs, collateral ratio, dynamic fees and external liquidity.

Why the class rule decides

The shared v1 below-materiality dossier controls. Reopen after reproducible reserve TVL sustains at least $100M for 30 days. Then review hyUSD and xSOL separately for reserve concentration, LST depegs, oracles and controls, collateral stress, stability-pool conversion, fees, audits and incidents, governance, and proposed-size redemption against unleveraged staking and stable-value alternatives.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Hylo Docs — current protocol introduction · primary · accessed 2026-08-15
  Supports: LST reserve, hyUSD, xSOL, leveraged SOL exposure, dual-token system
• Hylo Docs — risk management · primary · accessed 2026-08-15
  Supports: collateral ratio, dynamic fees, stability modes, hyUSD conversion, xSOL redemption
• DefiLlama — Hylo LSTs survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Solana, survey category, survey perimeter

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.