Swype.Fun Card

Swype.fun Visa Virtual Credit Card: DeFi-Native Borrowing Against Crypto Collateral

Basic Information

Swype.fun is a pioneering DeFi-native virtual credit card launched by BrahmaFi Ltd (incorporated in the British Virgin Islands) in partnership with Euler Labs. The card functions as a bridge between DeFi positions and everyday purchases, allowing users to borrow against their on-chain collateral in real time without selling their crypto assets.

The card's primary innovation is its non-custodial architecture, which enables users to maintain full control of their crypto assets while gaining instant spending power. Swype is now live on Hyperliquid, making it the first card on the Hyperliquid ecosystem. When a purchase is made, Swype.fun can automatically borrow USDC against the user's approved collateral on Aave or Euler protocols on the Base network, or utilize the new spend mode for direct spending from yield-earning stable vaults, settling with merchants instantly via Visa's payment network.

Rewards and Benefits

Swype.fun has evolved beyond its initial no-rewards model to offer a comprehensive rewards ecosystem, particularly for users on the Hyperliquid network:

DeFi Integration Features

• Yield Preservation: Users continue earning yield on their collateral assets even while spending against them
• Non-custodial Design: Swype never takes custody of user assets, maintaining true DeFi principles
• Programmable Spending: Custom borrowing limits and collateral asset selection provide flexibility
• Smart Contract Wallet Support: Compatible with multisig wallets like Gnosis Safe via EIP-1271
• Zero-Conversion Spending: No need to manually convert crypto to fiat before purchases
• Dual Spending Modes: Choose between borrow mode (against collateral) or spend mode (direct from stable vaults)

Hyperliquid Ecosystem Rewards

Swype on Hyperliquid is supported by HypurrFi, which has introduced a special points pool for Swype users:

• Effective Rewards Pool: <$1M calculating HypurrFi points at current base level FDV
• Ecosystem Integration: First card on the Hyperliquid ecosystem with native rewards
• Special Holder Benefits: Hypurr NFT holders receive no transaction fees until 2025

Referrals and Cashback Program

Swype has launched a comprehensive rewards program including:

• Referral System: Earn rewards for bringing new users to the platform
• XP Program: Accumulate experience points through card usage
• Cashback Rewards: Earn cashback on purchases with specific boosters for certain modes and protocols
• Protocol-Specific Boosters: Enhanced rewards for using specific DeFi protocols
• Holder Benefits: Special rewards and fee reductions for NFT holders and protocol participants

The card requires a minimum of $100 worth of supported crypto as collateral deposited in Aave or Euler on Base, or stable vaults on Hyperliquid for spend mode. Users who don't meet this minimum requirement can still access the card through the invite-only program.

Fees and Limits

Transaction Fees

For non-USD purchases, Visa applies a tiered foreign exchange fee structure:

• 3% for transactions under $10
• 2% for transactions between $10-$100
• 1.5% for transactions over $100

These FX fees are in addition to Brahma's standard 0.5% transaction fee, making the total fee for non-USD purchases range from 2-3.5% depending on transaction size.

Special fee exemptions apply to Hypurr NFT holders, who receive no transaction fees until 2025 as part of the ecosystem rewards program.

There are no deposit or withdrawal fees, as the card operates on a non-custodial model where users maintain control of their assets.

Spending Limits

• User-defined daily spending limit set via dashboard
• No fixed monthly cap; maximum spending determined by collateral value and approvals (borrow mode) or vault balance (spend mode)
• No ATM withdrawals supported (virtual card only)

Transactions will be blocked if the collateral position falls too low, if the approval limit is reached, or if vault balances are insufficient in spend mode. All settlements are processed through Visa's network.

Card Tiers and Options

Currently, Swype.fun offers two access paths to their virtual card: standard access for users with at least $100 in collateral, and invite-only access for those with less. The company has indicated that "more cards [are] coming soon" but has not provided specific details about future tiers or options.

Top-Up Methods

Swype.fun does not require traditional top-ups or pre-loading; instead, when a purchase is made, the platform automatically borrows USDC in real-time against the user's approved crypto collateral (such as WETH, USDbC, wstETH, DAI, and others) held in Aave or Euler on Base. Users maintain full custody of their assets at all times, with Swype only having delegation rights to borrow, so there is no transfer of funds to the card provider and no manual conversion process required. The card incurs a 0.5% just-in-time fee on USD transactions and additional Visa FX fees (up to 3% for small non-USD purchases), but there are no deposit, withdrawal, or pre-loading fees. A minimum of $100 in supported collateral is required to activate the card, and spending is limited by the collateral value and user-defined approvals. All management is done via the Swype web dashboard (no app yet), and purchases settle instantly through Visa's network, with borrowing and payment occurring within seconds.

Self-Custody True Self-Custody

Swype.fun uses a non-custodial model where users keep full control of their crypto assets at all times, including the private keys, even while spending. When you make a purchase, Swype.fun borrows USDC against your on-chain collateral in real time, but your underlying assets always remain in your own wallet or DeFi protocol—never in Swype's custody. This means you continue to earn yield on your collateral and can independently access or move your funds at any time, regardless of what happens to Swype.fun as a company. If the provider ceased operations, you would still have direct access to your assets through the underlying DeFi protocols. The main strengths are self-sovereignty and ongoing yield, while limitations include the need for KYC, a $100 collateral minimum, and some technical complexity. This approach offers strong user control but may be best suited for experienced DeFi users comfortable with managing on-chain collateral and borrowing risks.

Supported Currencies and Conversion

Supported Cryptocurrencies

Aave V3 (Base):

• USDbC, WETH, cbETH, cbBTC, wstETH, DAI, USDT, PYUSD, GHO

Euler Prime (Base):

• USDbC, WETH, weETH, wstETH, LUSD, sUSDe
• PT-USD0++-26JUN25, PT-tUSDe-25SEP25, PT-ETH++-29MAY25 and other yield-bearing PT tokens

Hyperliquid:

• Stable vaults for spend mode
• kHYPE, uBTC, uETH for Hooks DCA feature

Any token accepted as collateral by these protocols can be used to back the card. The default settlement currency is USD, though purchases in other currencies are supported via Visa's network (subject to FX fees).

Conversion Mechanics

When a purchase is made with the Swype card:

Borrow Mode:

1. The system automatically borrows USDC against the user's approved collateral
2. No manual conversion is required; the process happens in real-time at transaction
3. The underlying DeFi protocols (Aave/Euler) handle the collateralization
4. On-chain loan-and-pay happens "within seconds" according to Brahma
5. Merchant receives payment instantly via Visa's network

Spend Mode:

1. Funds are directly drawn from connected yield-earning stable vaults
2. No borrowing or collateralization required
3. Instant settlement with merchants via Visa's network
4. Users continue earning yield on remaining vault balances

The card does not offer built-in exchange functionality; users must ensure deposits in Aave/Euler or Hyperliquid vaults themselves. For non-USD transactions, Visa's exchange rates are used.

Geographic Availability

Swype.fun is available globally with specific exceptions:

Restricted Countries/Regions:

• Consumer-ineligible countries: Cuba, DPR Korea, Egypt, Iran, Myanmar, Nigeria, Russia, South Africa, Syria, Ukraine (all regions), Venezuela
• US state exclusions: Arizona, Delaware, Georgia, Idaho, Louisiana, Maryland, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oregon, Rhode Island, South Dakota, Utah, Vermont, Washington, Wisconsin, Wyoming

Legal Disclaimers:

• Usage blocked for persons/entities on major sanctions lists (OFAC SDN, EU, UN lists)
• Not available in countries where Visa's network prohibits it
• Subject to change based on regulatory developments

Compliance and Security

Custody Model

Swype.fun employs a fully non-custodial model:

• Users retain all asset custody in their own wallets
• Brahma only has delegation rights to borrow on user's behalf (borrow mode) or access to approved vault funds (spend mode)
• The company cannot withdraw or seize user's crypto assets

Security Features

• Smart Contract Security: Audited by Spearbit, Code4rena, and Ackee
• Web Security: Full Quill web-pen-test completed; standard web security (SSL, encryption)
• Wallet Security: Support for smart-contract wallets (via EIP-1271) for additional security
• Compliance Partnerships: SumSub for KYC verification; Rain for card issuance and Visa sponsorship

All users must complete mandatory one-time KYC via SumSub before card issuance, with personal identity documents collected to meet compliance obligations. KYC data is stored securely with the provider and not sold by Brahma.

Technical Details

Swype.fun operates through a three-layer architecture:

1. Front-end + Policy Layer: Brahma (user interface, spending controls, compliance)
2. Credit Layer: Euler Finance and Aave (DeFi lending protocols on Base), Hyperliquid (stable vaults)
3. Settlement Layer: Visa network via Rain (card issuing platform)

This structure creates a hybrid product that leverages both decentralized borrowing and traditional payment rails. The card supports smart contract wallets via EIP-1271, allowing for enhanced security through multisig setups like Gnosis Safe.

Spend Mode vs Borrow Mode

Swype now offers two distinct spending modes:

Borrow Mode:

• Traditional collateral-backed borrowing against Aave or Euler positions
• Users maintain yield-earning collateral while accessing spending power
• Subject to collateralization ratios and liquidation risks
• Interest charges apply based on underlying protocol rates

Spend Mode:

• Direct spending from connected yield-earning stable vaults
• No borrowing or collateralization required
• No borrowing limitations or liquidation risks
• Continue earning yield on remaining vault balances
• Available on Hyperliquid stable vaults

Hooks: Smart DCA Feature

Swype's innovative Hooks feature enables automated dollar-cost averaging (DCA) with every purchase:

• Pre and Post Transaction Automation: Triggers activate before and after each Swype transaction
• Customizable DCA Percentage: Users select what percentage of each purchase to allocate for DCA
• Supported Assets: Currently supports kHYPE, uBTC, uETH for automated accumulation
• Automatic Execution: DCA occurs automatically on every Swype transaction without manual intervention
• Bullish Asset Accumulation: Designed for users to automatically accumulate their most bullish assets

This feature allows users to seamlessly build positions in their preferred assets while making everyday purchases, turning routine spending into an investment strategy.

User Experience

Swype.fun currently offers a web-based interface only, with a mobile app "coming soon" for both iOS and Android. Support channels include an on-site chatbot and social channels (Discord, X/Twitter), though no 24/7 phone hotline is mentioned.

User feedback is limited due to the recent launch and invite-only status. Early social media feedback praises the instant borrowing and spending flow, though some users note the mandatory KYC as a potential barrier. One user described it as "a DeFi protocol inside a card – insane."

With the reduced collateral requirement of just $100 and the introduction of spend mode, the barrier to entry has been significantly lowered, making the card more accessible to a wider audience. The addition of the Hooks DCA feature has been particularly well-received by users looking to automate their investment strategies. Common complaints now primarily center around the KYC requirement, which may deter privacy-focused users. Specific merchant category restrictions are not specified, though future enhancements may include merchant-category blocks.

Best Suited For

• DeFi Power Users who want to leverage their existing protocol positions for real-world spending
• Yield Farmers who don't want to sacrifice earning potential when accessing spending power
• Crypto Holders who prefer not to sell assets for everyday purchases
• Smart Contract Wallet Users who want to spend directly from multisig setups
• Privacy-Conscious Spenders who prefer non-custodial solutions (though KYC is still required)
• Crypto Newcomers with modest holdings who can now access the card with just $100 in collateral
• Hyperliquid Ecosystem Participants seeking rewards and fee benefits
• DCA Enthusiasts who want to automate asset accumulation through everyday spending
• Stable Vault Users who prefer direct spending without borrowing complexities

Pros and Cons

Pros

• Truly non-custodial architecture preserves DeFi principles
• No need to sell crypto assets to access spending power
• Continue earning yield on collateral while spending
• Zero annual fees and no added interest beyond protocol rates
• Seamless integration with Apple Pay and Google Pay
• Low entry barrier with just $100 minimum collateral requirement
• Comprehensive rewards program with referrals, XP, and cashback
• First card on Hyperliquid ecosystem with special rewards pool
• Innovative Hooks DCA feature for automated asset accumulation
• Dual spending modes (borrow and spend) for different use cases
• Special benefits for NFT holders and ecosystem participants

Cons

• Invite-only access for those with less than $100 in collateral
• Mandatory KYC may deter privacy-focused users
• Virtual card only; no physical card option
• Potentially high fees for non-USD purchases (up to 3.5%)
• Limited to Base and Hyperliquid networks currently

Conclusion

Swype.fun represents a significant innovation in the crypto payment card space by creating a truly DeFi-native spending experience. Unlike traditional crypto cards that require asset conversion or centralized custody, Swype's non-custodial model allows users to maintain ownership of their crypto assets while gaining real-world spending power through on-chain borrowing or direct vault spending.

The card's most distinctive features include its ability to preserve yield-earning potential while enabling everyday purchases, the innovative Hooks DCA feature for automated asset accumulation, and its comprehensive rewards ecosystem. The introduction of spend mode alongside the traditional borrow mode provides users with flexible options based on their risk tolerance and financial strategy.

With the reduced collateral requirement of just $100 and integration with the Hyperliquid ecosystem, Swype has significantly lowered the barrier to entry while offering substantial rewards for ecosystem participants. The mandatory KYC process may still deter some privacy-focused users, and the lack of physical cards limits certain use cases.

Swype.fun is ideally suited for crypto-native users who maintain DeFi positions and want to leverage those assets for spending without sacrificing ownership or yield potential. The addition of automated DCA through Hooks and the comprehensive rewards program makes it particularly attractive for users looking to optimize their crypto accumulation strategies. As the product matures beyond its beta phase and potentially expands to additional networks, it could become even more accessible to a broader audience.

Additional Information

Technical Architecture

The Swype card's three-layer architecture (Brahma frontend, Euler/Aave/Hyperliquid credit layer, and Visa settlement layer) enables the unique combination of decentralized borrowing with traditional payment rails. This hybrid approach leverages the strengths of both systems while minimizing their respective weaknesses.

Brahma's smart contracts have undergone multiple independent security reviews from Spearbit, Code4rena, Ackee, and a full Quill web-penetration test. While these audits provide a level of assurance, users should remain aware that the integration of DeFi protocols with payment systems is relatively novel and may contain unforeseen risks.

Collateral Considerations

Users should carefully consider which assets to use as collateral, as different assets on Aave and Euler have varying:

• Collateralization ratios
• Liquidation thresholds
• Borrow APRs
• Yield-earning potential

Using stablecoins as collateral provides more predictable borrowing capacity but may generate less yield, while using volatile assets like ETH could offer higher yields but with increased liquidation risk. The optimal strategy depends on individual risk tolerance and portfolio composition.

For spend mode users on Hyperliquid, stable vaults eliminate liquidation risk while still providing yield opportunities. The Hooks DCA feature can be particularly effective when combined with stable vault spending, as it allows for systematic accumulation of volatile assets while maintaining a stable spending base.

For fee minimization, users should:

• Use USD for purchases when possible to avoid FX fees
• For large non-USD purchases, take advantage of the tiered FX fee structure (1.5% for >$100 vs 3% for <$10)
• Monitor underlying protocol interest rates for optimal borrowing costs
• Consider Hypurr NFT ownership for fee exemptions until 2025
• Leverage the rewards program to offset transaction costs through cashback and XP benefits