The vaults will keep producing yield during the wind-down while gradually unwinding positions back into the underlying assets.
Anyone who doesn’t withdraw before the deadline isn’t left stranded, at least according to the plan. Once the protocol closes, any remaining net asset value, or NAV, will be returned directly to the wallets of vault token holders.
What happens to HWAVE and GWAVE
Hyperwave is also making a final gesture toward its token holders. All protocol revenue generated up until the shutdown, 100% of it, will be used to buy back and burn HWAVE tokens.
For those holding staked positions, GWAVE staking can be unwound at any time.
The team also flagged phishing risk during the transition and asked users to contact it only through official channels.
From $45.75 million to under $1 million
Hyperwave’s total value locked peaked at $45.75 million in August 2025.
By the time of the November announcement, TVL had fallen to roughly $917,000 to $923,000. That works out to a decline of approximately 98%.
Running a protocol carries fixed expenses whether it holds $45.75 million or less than $1 million. As deposits dried up, the revenue that could cover those costs dried up with them.
The Hyperliquid and Swell Labs context
Hyperwave sat inside the Hyperliquid ecosystem, where it offered yield vaults to users looking to put assets to work. It was built by Swell Labs, which gave it a recognizable developer behind the product.
What this means for users and yield protocols
For current depositors, the vaults are open for withdrawals now, and the protocol says leftover value will be distributed after December 16. Anyone who prefers certainty over a final payout can exit early, while those who stay keep earning yield as positions unwind.
Users should be skeptical of any link, DM, or site promising faster refunds, and should stick to Hyperwave’s official channels as the team advised.
For HWAVE holders, the buyback-and-burn redirects revenue their way until the end. But with TVL already near $923,000, the revenue pool feeding those buybacks is working from a small base.