The yield-bearing vault established by the decentralized exchange HyperLiquid has seen a significant rise, moving from $163 million to $418 million in just two months, overcoming issues stemming from the JELLY market incident earlier in March, according to data from DefiLlama.

The vault functions as an internal market maker, providing yield to depositors, though it faced a setback where it was $13.5 million underwater due to a user manipulating the JELLY index price.

Key Highlights:

• The vault was forced to close the JELLY market, settling it at $0.0095 compared to a falsely inflated $0.50.
• Following this incident, total value locked (TVL) plunged to $150 million from $510 million, and the HYPE token took a 20% hit.
• Positive sentiment returned, notably thanks to James Wynn, a trader who publicly showcased trades on HyperLiquid, generating a positive outlook for the platform, which adeptly handled the substantial transactions.
• Currently, the vault is yielding an annual return of 13.42%, surpassing several other protocols that typically offer around 9% in returns.

For further insights into the vault’s performance, you can check it out here.